Stock Market Resilient Amid Soaring Crude Oil Prices, Fed Rate Cut, China Trade News; Microsoft, Adobe, FedEx, GM, Roku In Focus: Weekly Review

major indexes

The Dow Jones Industrial Average and other major indexes closed near session lows in the stock market today as China trade war fears again took center stage. 

The Dow Jones industrials dropped 0.6%, the S&P 500 lost 0.5% and the Nasdaq tumbled 0.8%. Small caps tracked by the Russell 2000 held up much better, edging 0.1% lower. Preliminary data showed sharply higher volume on the NYSE and Nasdaq vs. Thursday, due to the quarterly expiration of options and futures.

The key indexes opened higher and extended their gains before dropping sharply after 1 p.m. ET. CNBC and Reuters reported that China trade officials cut their U.S. visit short and will not visit farms next week as planned.

The key indexes halted their three-week advance:  The Dow shed 1%, the Nasdaq 0.7% and the S&P 500, 0.5%.

After opening higher and rising as much as 0.3%, the Dow reversed sharply lower. Intel​,  down 1.6%, was the Dow's biggest loser. The stock is trying to build the right side of an undefined base with a 59.69 entry. It's still 14% off its high.

Other blue chip losers down more than 1% apiece included Home Depot, Boeing, Apple and Caterpillar​.

Microsoft​ pared its loss to 1%. The stock climbed past a 141.78 flat-base buy point during Thursday's session but closed below the entry. Microsoft's flat base remains intact.

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Drug Giant Among Dow Jones Winners

Merck​ was one of the Dow Jones leaders with a 1.4% advance. That pushed the drug giant's stock further above the 50-day line, which it regained Thursday. Merck extended its win streak for a fourth straight session, since its uterine cancer treatment won FDA approval on Tuesday.

Among other blue chip winners, Dow, Walgreens Boots Alliance and Johnson & Johnson​ added more than 1% each.

Roku​ dived 19% in heavy trade to give up its 50-day line. Pivotal Research Group started covering the streaming video platform with a sell rating and 60 price target.

Over in the IBD 50, Israel-based medical technologies provider InMode shed 4.5% in below-average volume. The Aug. 8 new issue is still up more than 80% from its offering price and holds 9% above a 23.83 buy point of an IPO base.

Pop culture products maker Funko lost more than 6%, extending Thursday's 7% drop, which sent the stock below its 50-day line. Marijuana REIT Innovative Industrial Properties, Brazil merchant payments firm StoneCo and China social network Momo each gave up 2% or more.

On the IBD 50 upside, Essent Group​ surged 4%, clearing a 50 buy point of a double-bottom base in busy trade. It remains in buy range, which goes up to 52.50. The private mortgage insurer was featured in Thursday's IBD 50 Stocks to Watch column.


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