Dow Jones tops big rally, Apple falls on Buffett News


The Dow Jones Industrial Average index rebounded on Friday to extend its weekly winning streak for an eighth week, thanks to strong gains from Goldman Sachs and JPMorgan.


Industrial stocks on the Dow Jones rose 1.7%, the S & P 500 nearly 1.1% and Nasdaq 0.6%. Small caps also took part in the rally, with the Russell 2000 up 1.4%. The volume was slightly lower on the NYSE but higher on the Nasdaq compared to Thursday, according to preliminary figures.

The Dow and S & P 500 rose above their respective 200-day moving average, while the Nasdaq closed at the edge of its long-term trend line. For the week, the Dow Jones rose 2.8%, the S & P 500 2.3% and Nasdaq 2.2%.

DowDuPont (DWDP) JP Morgan (JPM) and Goldman Sachs (GS) dominated Dow's industrials with gains of 3% or more each. United Technologies (UTX) was close behind with a gain of 2.9%. The stock, which has risen sharply since the end of last year, has returned to its 200-day moving average for the first time since the end of November.

Only two losers from the Dow Jones

Apple, down 0.2%, is one of only two losers at the Dow. The other was Coca Cola (KO), down 0.8%.

Apple rose 20% from its low in early January, but remains 27% lower than its peak in October. The actions of the iPhone maker have grown less than 1% in one or the other way during the last six sessions. Warren Buffett Berkshire Hathaway (BRKA) in the fourth quarter would have reduced its stake in Apple by nearly 3 million shares, or 1%. This brings the stake back to 249.6 million shares, or 21.5% of Berkshire's portfolio, compared to nearly 26% in the third quarter.

Computer networks, up 6.4%, were a major contributor to the gains in the equity sector. Energy and generic manufacturers have also made progress. But toy manufacturers, solar stocks and transportation have been lagging behind.

Stock IBD 50 Arista Networks (ANET) recorded a rapid increase in its trade of 9%, exceeding the 200 days mark. On Tuesday, the networking hardware manufacturer reported fourth-quarter profits and sales ahead of expectations.

Its rival Cisco, which posted a quarterly profit Wednesday night, rose more than 2% to take a point of purchase of 49.24 double-bottomed points. Thursday, the stock crossed over, and then closed below, the entrance.

Arista saw the biggest breakthrough in the IBD 50, followed by SS & C Technologies (SSNC), which jumped 6%. The financial software company reported robust earnings and sales growth in the fourth quarter, up 76% and 153%, respectively. Stocks jumped nearly 61.07 points on a six-month cup basis.

SS & C has also been featured in Stock Spotlight, a list of key IBD products.

The Innovator IBD 50 ETF (FFTY) climbed 0.6% to extend its winning streak for a seventh session.


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