Stocks Try To Extend Win Streak As Dow Tests This Key Level

Shutterstock photo

The stock market held solid gains Thursday afternoon, trading at session highs and seemingly intent on extending a win streak.

[ibd-display-video id=3149582 width=50 float=left autostart=true] The Nasdaq composite added 1.2% while the S&P 500 and the Dow Jones industrial average each climbed 0.8%. The Russell 2000 lagged with a 0.4% increase.

Volume rose on the Nasdaq and fell on the NYSE compared with the same time Wednesday. Advancers led decliners by 12-to-7 on the NYSE and by 8-to-5 on the Nasdaq.

The most important element of today's trading is the behavior of the main indexes at their 50-day moving averages. The S&P 500 and the Dow remain below their 50-day lines, and after a few days of sharp gains, the indexes seem due for a break.

But the Nasdaq, which has outperformed the other two indexes, has already climbed above its own 50-day line with more energy. The Nasdaq chart is painting a more favorable outlook, at least for the short term. While the indexes are giving these mixed signals, keep in mind that the market has flashed a bottoming signal .

Technology components helped the Dow advance, as Cisco Systems ( CSCO ) led with a 4% increase to the highest level since December 2000. The network equipment giant beat profit expectations, raised its guidance and increased its stock buyback.

Apple ( AAPL ) and Microsoft ( MSFT ) were among the Dow winners, also.

Beaten-down utilities were some of the strongest stocks in today's market , with the Dow utilities up 1.4%. The sector has been bouncing modestly but remains well off its Nov. 15 peak as rising interest rates caused these dividend-rich assets to lose their advantage over bond yields. The 10-year Treasury note's yield was nearly unchanged at 2.90%.

Bristol-Myers Squibb ( BMY ) broke out past a 66.20 buy point in heavy volume. The pharmaceutical company announced it will pay a record $1.85 billion to Nektar Therapeutics ( NKTR ) for rights to an experimental cancer drug. Nektar shares fell 1% but are still finding support at the 10-week moving average. Bristol-Myers is now a stock on IBD Leaderboard .

Track Top Stocks And Market Trends With Free IBD Newsletters

Bank of N.T. Butterfield & Son (NTB) soared in big volume, leaping to a record high. The Bermuda-based bank reported core earnings of 76 cents a share, up 23% from a year ago. Butterfield cited gains in fee income from its specialized banking and wealth management businesses, plus expanding net interest margins thanks to rising interest rates.


Apple Stock Rises As Berkshire Hathaway Increases Its Stake

Cisco's Trifecta: $25 Billion Buyback, Beats On Earnings, Outlook

How To Find The Next Stock Market Bottom? Use This Chart Technique

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.

In This Story


Other Topics


Latest Markets Videos