Walgreens stock was a big winner in the Dow Jones today, helped by a strong earnings report, but the blue-chip index had a hard time keeping up with the Nasdaq composite, which was up 2% in afternoon trading. The Nasdaq 100 also rose 2%, helped by strength in chip-equipment firms like Applied Materials (AMAT), Lam Research (LRCX) and KLA (KLAC).
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Applied Materials hit another new high after the stock cleared a short consolidation last week. Lam Research, meanwhile, is closing in on an alternate entry of 603.70, while KLA is nearing a 342.31 buy point.
Other chip-equipment stocks are setting up for possible breakouts, including MKS Instruments (MKSI) and Entegris (ENTG). Chipmakers with bullish charts include Amkor Technology (AMKR) and ON Semiconductor (ON).
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33128.47 | +61.51 | +0.19 |
| S&P 500 | (0S&P5) | 3993.48 | +34.93 | +0.88 |
| Nasdaq | (0NDQC ) | 13301.12 | +255.72 | +1.96 |
| Russell 2000 | (IWM) | 220.89 | +2.88 | +1.32 |
| IBD 50 | (FFTY) | 44.00 | +0.55 | +1.27 |
Last Update: 1:18 PM ET 3/31/2021 |
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Chip stocks continue to provide market leadership, but both Nasdaq indexes remain on downtrends, stuck below their 50-day moving averages.
The Dow Jones edged up 0.2%. the S&P 500 rallied 0.9% and the iShares Russell 2000 ETF (IWM) was up 1.3%. Volume on the NYSE and Nasdaq was lower compared to the same time Tuesday.
The stock market is in a confirmed uptrend, but the distribution day count remains elevated, with five higher-volume declines for the Nasdaq composite and S&P 500. Increasing distribution days, a sign of institutional selling, can cause problems for a stock market rally. The Nasdaq might be struggling, but the S&P 500 is holding near highs. You can monitor the distribution day count each day in The Big Picture column.
Dow Jones Gainers
Besides Walgreens (WBA), which jumped 5% and topped an alternate buy point of 56.22, Apple (AAPL) also outperformed, rising nearly 3%. Shares were strong after UBS upgraded Apple stock to buy from neutral and raised Apple’s price target to 142 from 115.
Apple has been finding a new home near the 120 level but it’s still below the 50-day moving average amid recent signs of institutional selling.
Boeing (BA) also outperformed in the Dow Jones today after Alaska Air (ALK) said it would buy 23 737 Max jets. The news come after Southwest Airlines (LUV) on Monday also announced a large 737 Max order.
Outside the Dow Jones
The Innovator IBD 50 ETF (FFTY) looked poised for its fourth gain in five trading sessions. The exchange traded fund, which tracks the performance of the IBD 50 index of leading growth stocks, jumped nearly 1.4%. Top gainers in the IBD 50 included Cleveland-Cliffs (CLF), a producer of iron ore and steel products. Bullish EBITDA guidance was the catalyst. CLF stock is holding gains bullishly after gapping up in price.
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Besides Cleveland-Cliffs, two other stocks broke out in heavy volume.
Retailer Conn’s (CONN) soared past a 17.03 buy point, rising 23% to 19.31 on strong earnings. And Leaderboard stock Boston Beer (SAM) hit an all-time high after breaking out over a trend line Friday. Shares were up 4.5% after rising nearly 5% last week.
Callon Petroleum (CPE) and Horizon Therapeutics (HZNP) were top gainers in the MarketSmith Growth 250, up 5.5% each.
Oil and gas producer Callon has been an outstanding price performer in the energy sector and continues to hold gains nicely. Horizon Therapeutics broke out over a trend line Wednesday, giving an early entry.
IPO Coursera (COUR) soared 17% to 38.56 on its first day of trading. The online education platform priced last night at 33, at the high end of the proposed range of 30-33.
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.
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