The Dow Jones Industrial Average closed the week on a high by rising again as the stock market rally continued. While it finished at session highs, it was not enough to erase losses for the week. Google parent Alphabet (GOOGL) is offering a new buy point, while Apple (AAPL) retook a key benchmark. American Express (AXP) was the leading blue chip, while Walt Disney (DIS) took a dive on disappointing results.
Tech Stocks Rally, Nasdaq Outperforms
The Nasdaq was outperforming as tech stocks continued to fight back. But while the index closed up 2.3%, it finished a tough week beneath its 50-day moving average. Coronavirus vaccine play Moderna (MRNA) was the top performer, posting a gain of almost 8%.
The S&P 500 was also gaining, and moved further clear of its 50-day line. It rose 1.5% for the day, which means it posted a weekly loss of just over 1%.
The top performer here was Seagate Technology (STX), which popped 12.5%. It rallied after Morgan Stanley analyst Joseph Moore predicted new cryptocurrency Chia, which relies on storage instead of processing power for mining, could boost hard disk demand.
U.S. Stock Market Today Overview
Last Update: 4:06 PM ET 5/14/2021
The S&P sectors were all green, with energy and technology leading. Health was turning in the slimmest gain.
Volume was sharply lower, which is not ideal on an up day. It fell 19% on the NYSE according to early data. Trading dipped around 16% on the Nasdaq.
Small caps were outperforming, with the Russell 2000 gaining 2.4%. However growth stocks were faring the best of all, with the Innovator IBD 50 ETF (FFTY) up 3.2%.
Apple Stock Retakes Key Level As Dow Jones Gains
The Dow Jones Industrial Average is continuing to rise away from its 50-day moving average, but was lagging the other major indexes with a gain of 1.1%. For the week, it closed down around 1%.
Apple stock was one of the standout performers. It popped around 2%, and moved back above the 50-day line, according to MarketSmith analysis. Holding above this key technical benchmark will be an important step.
However American Express was the leading component, posting a gain of more than 2%. It is currently in a buy zone after passing a cup with handle with a buy point of 150.55.
Google Stock Offers Buy Point
Google parent Alphabet is offering a new buy point as it stages a rebound from its 10-week line. The buy point is 2,205, and it is actionable up to 2,425.50.
Google stock posted a gain of 2.2%; however, investors will want to see its RS line make progress going forward.
Software giant Microsoft was up 2.1%, though it gave up some gains. It has now retaken the 50-day moving average, which was a key short-term objective. It is above a 246.23 former buy point in a seven-week flat base.
Alphabet and Microsoft are both members of the prestigious IBD Leaderboard list of leading growth stocks.
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Disney Stock Dives On Earnings
Disney stock was beaten 2.6% lower, though it pared some losses, after posting disappointing results.
The Dow Jones stock knifed more than 5% lower earlier in the session. It had been forming a flat base; however, that pattern is no longer valid. Shares also currently trading well below their 50-day line, which is a bearish sign.
The biggest issue was the House of Mouse fell way short of analyst views for Disney+ subscriber growth.
It reported 103.6 million Disney+ subscribers at the end of Q2, up from over 100 million in early March and 94.9 million as of Jan. 2. However Wall Street had been looking for 109 million.
Results were also mixed. EPS rose 32% to 79 cents, which was well clear of analyst views. However a 13% revenue decline to $15.61 billion was shy of Wall Street expectations.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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