Major stock indexes held near highs Wednesday, but weren’t moving much in either direction, as Wall Street weighed another tame reading on wholesale inflation and more weakness in shares of Apple (AAPL).
XAutoplay: On | OffInside the Dow, Apple extended losses after reversing lower Tuesday in heavy volume. Shares dropped 1% to 159.10. It was a classic case of “sell the news” Tuesday after Apple revealed a new lineup of iPhones as well as upgrades to the Apple Watch.
Apple hasn’t made much progress after a breakout over a 156.75 buy point in early August. It’s still holding above the buy point, but breakouts need institutional buying to really work and many of Apple’s recent price gains have come in average or below-average volume.
Shares of Dolby Labs (DLB) surged around 9% to 58.74 on news several of Apple’s new products, including the iPhone X and the new Apple TV 4K, will feature resolution-enhancing Dolby Vision technology. Shares of Dolby almost delivered a breakout from a flat base Tuesday with a 54.92 buy point. It’s extended from the buy point now.
The Dow Jones industrial average, S&P 500 and Nasdaq were mostly unchanged in afternoon trading. Small caps outperformed with the Russell 2000 up 0.4%. Volume on the Nasdaq was tracking about 15% higher than Tuesday’s levels. NYSE volume fell a bit.
Elsewhere, Nordstrom (JWN) jumped 6.5% on news it’s close to a deal with private equity firm Leonard Green and Partners to go private.
Also in the retail space, Finish Line (FINL) soared 8% after Susquehanna Financial upgraded the struggling retailer, saying a buyout is likely, with U.K.-based Sports Direct mentioned as a possible suitor.
Trex Company (TREX) was a heavy-volume gainer, rising 3% to 82.56. It’s in the early stages of breaking out of a flat base with a 82.14 buy point. The maker of wood-alternative decking, railing and fencing products for residential and commercial market is expected to see high demand as a result of Hurricane Irma.
IBD’S TAKE: Trex is one of many top performers in its industry group. See who the other leaders in the group are with IBD Stock Checkup.
Inside the IBD 50, managed care provider Centene (CNC) was the top performer, rising 7% to 97.50, on news it’s buying Fidelis Care for nearly $3.8 billion, expanding its presence in the New York area. Headed into Wednesday, Centene was in buy range from an 88.04 buy point after a low-volume breakout. It’s extended from the 5% buy zone now.
Gold was poised for its third decline in the past four trading sessions. After a recent breakout, SPDR Gold Shares (GLD) eased 0.6% to 125.76. It’s still holding comfortably above a 123.41 buy point. Benchmark crude oil, meanwhile, jumped 1.6% to 49.01 a barrel after the International Energy Agency said oil stockpiles in developed countries could hit or fall below their five-year average “very soon.”