Dow Jones leads the rally with 2 shares; Can Apple regain its Mojo?

The shares added to their earnings after the publication of the minutes of the January meeting of the Federal Reserve. The three major stock indexes posted gains after the Nasdaq became positive.


The Dow Jones Industrial Average index rose 0.3%, the S & P 500 index by 0.2% and the Nasdaq composite index, far higher. Small caps were in the lead while Russell 2000 gained 0.4%. The volume was slightly higher on the NYSE and Nasdaq compared to the same time on Tuesday.

No surprises came out of the Fed's minutes. Officials said they would be "patient" with monetary policy. The Fed also took note of recent weak economic data and indicated that it planned to end the sale of bonds by the end of the year.

DowDuPont (DWDP) and caterpillar (CAT) tops the Dow Jones index with gains of more than 3% each. DowDuPont, the giant of chemistry and plastic, surpassed its 50-day target, which it resumed on Tuesday. It remains 9% below its 200-day line and 23% below its 52-week high.

Caterpillar has returned to its 200-day line for the first time since early October. Equities fell by nearly 30% during this month amid concerns over the US-China trade war. They have recovered 24% since and could well start the right side of a long base.

Walgreens, Walmart Drag Dow Jones

Walgreens Boots Alliance (WBA) and Walmart (WMT) were the biggest losers. Walgreens lost 3.3% and fell back below its 50-day line, which she found on Friday.

Walmart yielded 2.5% to be below a point of purchase of 99.45 tumblers with handles, which he had cleared Friday. Shares rose more than 2% on Tuesday, after the profits of the retail giant were defeated.

Most Dow Jones technology stocks were under pressure: Microsoft (MSFT) IBM (IBM) Intel (INTC) and whitefish (CSCO) yielded less than 1% each.

But Apple (AAPL) reversed the downtrend with a 0.8% advance. The stock has been stuck near 170 for much of the last two weeks. It is now close to 172. DA Davidson reiterated Tuesday a purchase rating on Apple with a price target of 245. He said that the recent hiring of the iPhone maker to direct his smart home initiatives was a positive step.

Steel, tobacco and building-related stocks were among the sector's biggest winners. The chip equipment manufacturers also outperformed. But pharmacies, gaming software and clothing manufacturers underperformed.

Play Leads IBD 50 Software

Cadence design systems (CDNS) tops the list of IBD's 50 largest stocks with a near 5% pop. The stock rose and climbed 9% before reducing its gains to 5%. This is well extended from any point of purchase. The chip design software company announced Tuesday earnings and sales consistent with the fourth quarter forecast. He also guided the earnings and revenues of Q1 and FY 2019 against expectations.

Other IBD 50 winners included Autohome (ATHM), up 4%, and HealthEquity (HQY), which rose 2% to resume its 200-day line.

Trade Office (TTD), down nearly 8%, was the biggest loser. Manufacturer of business software Five (IVFN) reversed from a new high at a loss of 6%, while Horizon Pharma (HZNP) and Spirit Airlines (SAVE) have dropped more than 5%.

The innovative IBD 50 ETF (FFTY) lost 0.7%.


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