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Stocks Rise As Boeing, Apple Boost Dow; Bitcoin Play Sinks Again

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Stocks rebounded Wednesday amid a healthy jobs report and as Boeing ( BA ), Microsoft ( MSFT ) and Apple ( AAPL ) boosted the Dow Jones industrial average.

[ibd-display-video id=3115244 width=50 float=left autostart=true] SPDR Dow Jones Industrial Average ( DIA ) rose 0.6%, PowerShares QQQ Trust ( QQQ ) advanced 0.5% and SPDR S&P 500 (SPY) added 0.2% in the stock market today . Emerging markets outperformed with iShares MSCI Emerging Markets (EEM) up 0.9%. Small caps lagged: iShares Core S&P Small-Cap (IJR) and iShares Russell 2000 (IWM) climbed 0.1% and 0.2%, respectively.

Boeing led the Dow with a 6% gain after topping Q4 views and offering bullish guidance . Also on the Dow, Microsoft rose nearly 2%, on track for a new closing high. Apple recovered 0.4% as it tries to stem a recent slide below the 50-day line. The iPhone maker reports on Thursday.

REITs, semiconductors and banks led the upside among sector funds. VanEck Vectors Semiconductor (SMH), featured in Monday's ETF column, advanced 0.9% to retake a 105.93 buy point. Graphics chip designer Nvidia (NVDA) rose 2% to a new record high.

Metals miners, energy and health care were lower. Oil plays slipped along with West Texas intermediate crude prices. Gold funds climbed as did underlying gold futures.

But Bitcoin dipped 1% to $9,934.14, according to CoinDesk , after climbing back above the $10,300 level earlier. A South Korean official said the country doesn't plan to ban but will regulate cryptocurrency exchanges, according to Reuters. Bitcoin Investment Trust (GBTC), however, fell 6%. It's now 57% off its mid-December peak.

Growth Play

Stocks got smacked across the board Tuesday. But on the plus side, that may help set up new buy opportunities in equity ETFs holding top stocks like AI player Nvidia and Alibaba (BABA).

Innovator IBD 50 (FFTY) gapped down and fell more than 3% early Tuesday, but found support at its 50-day moving average and pared its loss by the close. If it continues to bounce off the support line, that could mark a chance to buy shares. An early January rebound off the 50-day yielded an 8% advance through a Jan. 22 intraday high. A late August pullback and bounce off the line produced a near 23% gain through a Nov. 22 intraday high.

The fund, which launched in April 2015 as a partnership between IBD and Innovator Capital Management, has attracted $376.8 million in assets. It tracks the IBD 50 Index , which comprises the top 50 growth stocks selected by IBD. Most of these names have in common traits of the market's biggest winning stocks, such as outstanding profit and sales growth, wide profit margins and a high return on equity.

The fundamental and technical metrics used for stock selection are based on decades of research started in the 1960s by IBD founder and Chairman William O'Neil. His CAN SLIM investing system includes current and annual earnings, new products, service or management, stock price performance, institutional ownership and the overall market.

Information technology accounted for more than half of the portfolio, around 52%, consumer discretionary 21%, financials 10% and health care 8%. Smaller positions in industrials, energy, consumer staples and materials made up the rest. The U.S. represented the biggest country weighting, 81%, followed by China at 14%, Australia 3% and Argentina 2%.

IBD'S TAKE:Nvidia is a leading chip stock, but how do the company's fundamentals rank in its industry group? Find out now at IBD Stock Checkup .

Top holdings as of Jan. 29 included graphics chip designer Nvidia, which is also a leading player in the artificial intelligence field, Chinese online retail giant Alibaba, Arista Networks (ANET) and Align Technology (ALGN). All closed lower Tuesday but retain double-digit gains this year vs. the S&P 500's 6% advance. Arista and Align fell sharply in early trading and closed near the top of their session range.

Align Technology fell before the opening bell on the stock market today despite reporting better-than-expected earnings late Tuesday.

So far this year, FFTY lags the S&P 500 with a 4.1% to 6.2% return. The ETF's one-year return of 40% leads the broader index's 26.9% gain. FFTY carries a 0.80% expense ratio. You can trade the IBD 50 in one click via the Innovator IBD 50 ETF by Innovator Capital Management .

Tuesday's pick, VanEck Vectors Semiconductor (SMH), is just below a 105.93 flat-base buy point.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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