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Another strong sale in Boeing (BA) is preventing the Dow Jones Industrial Average from accessing a broader stock pickup today. But another member of the Dow Jones Microsoft (MSFT) is showing leadership with a low-volume escape.
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At approximately 14:30 ET, the Dow Jones Industrial Average saw at least five of its 30 components increase by 1 point or more. They included the health insurance giant UnitedHealth Group (UNH), Visa (V) Apple (AAPL) American Express (AXP) and Home Depot (HIGH DEFINITION). But a decline of more than 29 points, or more than 7%, of Boeing's shares led the prime index to a loss of 0.3% late in the afternoon.
Among the four advanced Dow Jones countries, the financial transaction giant Visa has shown a real leadership position in the market. Visa and its industrial partner Dow Jones Microsoft (MSFT) are organizing new outbreaks. A breakthrough to new heights in terms of powerful volume can be found at the start of the big race of the big winners of the market.
The stock exceeds an appropriate purchase point of 150.29 on a mug with a loop base. Shares, up 1.3% in light trade, are still in the buying zone of 5%. This base also shows the basic structure of a double bottom.
Look to see if the relative strength line in Microsoft, drawn in blue in every IBD stock chart and in MarketSmith, can progress to new heights. A rising RS line indicates unusual price strength and the stock's ability to grow faster than the S & P 500.
Megacap Techs outperforms Dow Jones
Microsoft, a leader in management software, cloud computing and gaming hardware, has rallied for a third consecutive session and stands out as well. Shares rose 1% and outpaced the corresponding 113.35 point of purchase in a long cut with a round. The base also shows some elements of a double bottom. With this in mind, another potential entry point would be 113.52, 10 cents higher than the December 3 interim peak in the base.
Analysts surveyed by Thomson Reuters report continued earnings growth at Microsoft. Profits are expected to grow 14%, to reach $ 4.43 per share during the fiscal year ended in June, and 13% for the fiscal year 2020, to $ 4.99.
The strength of Microsoft, but also other megacap technologies, including Apple (AAPL) Intel (INTC) and owner of the Google search engine Alphabet (GOOGL), help the Nasdaq composites rally to 0.6%. This exceeds a gain of 0.4% for the S & P 500 and 0.2% for the 2000 Russell Small Cap.
S & P 600 small cap stocks were traded roughly flat.
Learn more about some of the fundamental reasons why Alphabet could outperform Nasdaq rivals in this Stock Market Today column published on Monday.
The Nasdaq 100 rose by almost 0.7% to reach its highest level since October 19th.
Cyclical stocks are boosted by continued growth in crude oil prices and expectations from the US and China on business practices with a possible meeting between country leaders Donald Trump and Xi Jinping by end of the month.
The marine transportation, oilfield services, oil drilling, steel, and oil and gas exploration sectors in the United States all grew 1.4% or more.
The volume is flat compared to the same time Monday on the Nasdaq and moderately lower on the NYSE.
Dow Jones: Why Visa Becomes a Market Leader
According to IBD Stock Checkup, Visa's relative strength index of 85 also makes it a leader among Dow's industrial stocks. The rating of 85 means that the credit and debit card transaction giant outperforms 85% of all companies in the IBD database in terms of 12-month relative price performance.
An IBD study found that among the biggest winners in the stock market in history, the average rating when an action performs a solid breakout and the highest reaches 87. point.
Stock leaders present, including Zscaler (ZS), one of the newest companies in the IBD ranking and programmable logic chip designer Xilinx (XLNX) have recently staged the divide and have since risen sharply.
New leaders in software and semiconductors
In the case of Zscaler, the developer of a brand new type of software architecture designed to protect users of virtual private networks has first detached from a deep and wide cup bottom with a point Purchase of 48.34 points on January 31st. A few weeks later, the action almost jumped Monster sales rose 22% to 60.57 on March 1, after the excellent results of the fourth quarter. On March 1, the opening price of 57.49 could be treated as an alternative closing price.
Zscaler recorded its biggest quarterly profit of 9 cents a share, crushing Wall Street, sales having jumped 65% to $ 74.3 million, the highest quarterly in the history of San society Jose, Calif., 12 years old. The EPS rating of the IBD inventory check is now 72.
It is quite normal for young new IPOs to have a lower than ideal EPS rating because they tend to have a much younger history of profitability and earnings per share growth.
Xilinx, which joined Leaderboard on Jan. 24 as a half-leader, has run more than 34% more since its January 24th gap after a decent purchase point of 95.28 in a race. perfect without sleeves.
For the moment, Xilinx shares are extended beyond an appropriate buying zone.
Wait for a new entry point or base to be created.
Please follow Chung on Twitter @IBD_DChung and @SaitoChung to learn more about growth stocks, quotes, chart analysis and financial markets.
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