The Dow Jones traded higher on Wednesday, leading the upside and trading near intraday highs. The Nasdaq briefly turned positive before fading gains.
Dow Jones Leads Upside
About an hour before the close, the Dow Jones Industrial Average rose 0.4% as the S&P 500 and Nasdaq composite swung between small gains and small losses. The S&P 500 held a 0.1% loss as the Nasdaq shed 0.2%, with tech stocks remaining under pressure. Small caps also showed losses, with the Russell 2000 down 1.2%. Volume was higher on the Nasdaq and lower on the NYSE vs. the same time on Tuesday, according to IBD data.
The major indexes are facing resistance at their 10-week lines yet again. Since the Nasdaq crossed below this key moving average in April, this will be the second time the index has been turned away at this level after trying to retake it.
On Wednesday, U.S. GDP for the first quarter was revised lower to a 1.6% annualized contraction, as personal consumption came in weaker than previously reported. This news, combined with Tuesday's negative consumer confidence survey, has caused the indexes to trade lower this week, following last week's strong gains.
Among S&P 500 sectors, the energy sector finally cooled and led the downside after two days of strong outperformance. The price of U.S. crude oil traded lower on Wednesday, down over 1.7% to $109 a barrel. On the upside, health care stocks and consumer staples outperformed.
Stocks In The Dow Jones
Dow Jones tech leaders Apple and Microsoft led the upside with gains of roughly 2% each. Both stocks have been in downtrends in recent weeks but are attempting to reclaim their 10-week lines.
Nike also led the upside with gains of 2.6%, following a sell-off earlier this week. The firm reported fiscal fourth-quarter results after the market closed Monday that beat expectations. But disappointing gross-margin guidance offset the good news, and shares lost more than 5% on Tuesday.
Shares of UnitedHealth continued higher above a 507.35 double-bottom entry. The stock remains in a buy zone that tops out at 532.71, according to MarketSmith. The stock's RS line continued to hit new highs as medical stocks outperform.
On the downside, Boeing and Caterpillar both traded down over 2%.
Ailing Rally Seeks Direction; Inflation, Jobs Data Due
IBD 50 Stocks To Watch
Over in the growth-focused IBD 50 index, medical stocks outperformed. Shares of U.K.-based treatment developer AstraZeneca briefly broke out above a 67.50 double-bottom buy point. The stock remained just below this area in afternoon trading, but shares still held a 1.8% gain. The stock's RS line also reached a new high. Volume on the breakout was a little light.
Shares of pharmaceutical maker Eli Lilly also traded higher as the stock remains inside a 5% buy zone from a recent 314.10 buy point. Shares broke out above a downward-sloping-trendline buy point last Wednesday. Eli Lilly held a gain of 1.4%.
Shares of biotech stock Vertex rose 1% in afternoon trading Wednesday. VRTX stock remains inside a 5% buy zone from a 276.10 cup-with-handle entry. Shares gained more than 11% last week, retaking their 50-day line.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
