Dow Jones Nears New Closing High; Nasdaq Pares Losses; Growth Stocks Outperform While These Leaders Are Actionable Now

The Dow Jones Industrial Average continued slightly higher in today’s stock market, as the index traded just shy of its all-time high set on Nov. 8. The Nasdaq erased earlier losses and traded close to breakeven in afternoon trading.

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Stock Market Today

An hour before the close, the Dow Jones industrials were up 0.3%. The Nasdaq composite held a loss of less than 0.1%, while the S&P 500 was up just over 0.2%. Meanwhile, the Russell 2000 small-cap index traded near breakeven. Data showed volume was running higher on the Nasdaq and the NYSE vs. the same time on Tuesday.

Stocks appear to be pausing after a strong rally last week. Among the S&P 500 sectors, real estate and health care led the upside with modest gains of over 0.5% each. On the downside, the energy and communication sectors fell around 0.5% each.

Industry groups leading the upside among IBD’s 197 groups included shipping stocks and several retail-related groups like consumer electronics, department stores and discount stores.

The Innovator IBD 50 ETF (FFTY) moved higher on Wednesday as well, outperforming the major indexes with a 0.6% gain. The index is seeking to reclaim support at the 200-day line which currently serves as a resistance point.

At the end of last week, IBD’s market outlook improved to a confirmed uptrend. The Nasdaq and S&P 500 are now both above their 50-day moving averages. With a handful of stocks showing improved relative strength and promising setups, investors may consider adding exposure to stocks that are performing well. But do so cautiously and remember that volatility remains high.

Dow Jones Today

In the Dow Jones today, stocks leading the upside included Nike (NKE) with a 1.5% gain as shares regained support at the 50-day line. The stock is building a new flat base with a buy point at 179.20. Shares of Walgreens (WBA) and Home Depot (HD) also outperformed with gains of over 1% each. Home Depot is currently in a buy zone after rebounding from support at its 10-week line.

On the downside, Boeing (BA) was down around 1%, while Verizon (VZ) lost 0.6%. Meanwhile, major Dow Jones tech leaders such Apple (AAPL) and Microsoft (MSFT) traded near breakeven.

Apple remains close to a 20% profit zone from a 153.26 cup-with-handle buy point. Shares initially broke out Nov. 17 and have floated higher above their 21-day line since then. This is a key sign of strength. Elsewhere, Microsoft is holding above its 10-week moving average as it forms a flat base.

Stocks Making Notable Moves

On Wednesday, a handful of top stocks in the MarketSmith Growth 250 index scored breakouts, including auto parts retailer Genuine Parts (GPC). GPC stock limped past a 139.21 entry.

Elsewhere, Raymond James Financial (RJF) broke out from a flat base with 103.56 entry, but the stock faded off highs. Shares recently gained momentum above support at the 50-day line.

Chemicals stock Valvoline (VVV) broke out from a 37.51 flat-base buy point as well on Wednesday. Shares have been climbing in heavy volume in recent weeks, a bullish sign. Also, the stock’s RS line is nearing new highs.

Over in the IBD 50, shipping stock Zim Integrated Shipping Services (ZIM) outperformed with a 4% gain in heavy volume. Shares are back near a 57.05 entry of a cup with handle. The stock has made multiple attempts to clear the buy point but faded from the entry each time.

Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.

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