Another sharp sell-off in Boeing (BA) shares is preventing the Dow Jones Industrial Average again from joining a broader rally in stocks today. But fellow Dow Jones component Microsoft (MSFT) is showing leadership with a low-volume breakout.
The Dow Jones Industrial Average saw at least four of its 30 components rise 1 point or more. But a drop of more than 29 points, or more than 7%, in Boeing shares sent the blue chip index to a 0.4% loss in early-afternoon trade.
Among the four sharp advancers in the Dow Jones, financial transactions giant Visa (V) showed market leadership.
The stock is rising past a 150.29 proper buy point on a large cup with handle. Shares, up 1.3% in light trade, are still in the 5% buy zone. This base also shows the basic structure of a double bottom.
Microsoft, a leader in business software, cloud computing and gaming hardware, rallied for a third straight session and is also breaking out. Shares rose 1% and surpassed a 113.35 proper buy point in a long cup with handle. The base also shows some elements of a double bottom. In that light, another potential entry point would be 113.52, or 10 cents above the Dec. 3 interim peak within the base.
Megacap Techs Outperform Dow Jones
The strength in not only Microsoft but other megacap techs, including Apple (AAPL), Intel (INTC) and Google search engine owner Alphabet (GOOGL), are helping the Nasdaq composite rally 0.6%. That exceeds a gain of around 0.3% to 0.4% for the S&P 500 and the small cap-oriented Russell 2000.
Cyclical shares are getting a boost amid a continued advance in crude oil prices and expectations that the U.S. and China will compromise on trade practices with a potential meeting between the countries’ leaders Donald Trump and Xi Jinping by the end of this month.
Ship transport, oil field services, oil drilling, steel and U.S. oil and gas exploration groups all rose 1.4% or more.
Volume is running flat vs. the same time Monday on the Nasdaq and is lower on the NYSE.
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