Stocks Close Slightly Lower; Microsoft Reaches Record High – Investor's Business Daily

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XAutoplay: On | Off The stock market closed mildly lower Tuesday, although the technology sector had a few noteworthy moves.

The Nasdaq and the S&P 500 eased 0.1%. The S&P remained above 2400, a level that chart readers are watching with interest.

The Dow Jones industrial average was off 0.2%. Dow component Microsoft (MSFT) climbed less than 1% but reached a record high. The software giant is rising from support at the 10-week moving average. The small-cap Russell 2000, a laggard for much of this year, was down 0.7%.

Volume was higher, no surprise at all after Friday’s whisper-quiet trading ahead of the Memorial Day weekend. Losing stocks led winners by a 9-5 ratio on the Nasdaq and by a 3-2 ratio on the NYSE.

The energy sector was one of the weakest, while drugmakers — namely biotechs and generic drugs — fell about 2% on the day. Crude oil prices fell only 0.4% to $49.62 a barrel.

A couple of technology stocks that cleared buy points highlighted today’s trading.

Micron Technology (MU) broke out of a flat base, rising past the 29.97 buy point. Volume was about 20% above average, less than desirable for a breakout.

Analog Devices (ADI) cleared the 84.34 buy point in heavy trading. The stock’s relative strength line made a new high as well, a bullish sign. Analog is announcing quarterly results before the market opens Wednesday.

Veeva Systems (VEEV), which makes software for the health care industry, fell 3% in more than double its usual volume, erasing much of Friday’s 8% burst following its earnings report.

Some of the Chinese stocks that have been hot were down in unusually heavy volume. TAL Education fell to  its 50-day line, where it now tests support. Momo (MOMO) fell 5% and closed slightly below the 50-day line. Selling has picked up considerably in the social media company the past week.

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