Credit: Shutterstock photoKey market index funds shook off early weakness to hold modest gains Friday as Apple ( AAPL ) lifted the Dow Jones industrials and the Nasdaq.
[ibd-display-video id=3149587 width=50 float=left autostart=true] SPDR Dow Jones Industrial Average ( DIA ) and PowerShares QQQ Trust ( QQQ ) rose 0.3% and 0.1%, respectively, while SPDR S&P 500 ( SPY ) climbed 0.2%. All three ETFs have recovered their 50-day lines. QQQ is 2% off its high; DIA and SPY are each 4% off their highs.
Apple, up 0.7%, boosted DIA and QQQ. It's back above both the 50-day and 200-day lines, on track to extend its win streak to six days, and is now 3% below its January peak. Apple gapped up and advanced more than 3% Thursday to close above the 50-day line. The iPhone maker is on track for a more than 11% weekly gain.
Developed overseas markets outperformed, with iShares MSCI EAFE ( EFA ) up 0.6%, extending its gains after to retake its 50-day moving average.
Real estate, retail and homebuilders were among biggest sector fund gainers in the stock market today . SPDR S&P Retail (XRT) rose 0.7%, extending its gains after retaking its 50-day line Thursday. It hit a 52-week high last month before pulling back, so the rebound from the support line puts XRT in potential buy range.
Gold miners, energy and telecom lagged.
How Now, Dow?
The recent market sell-off is creating plenty of new buy opportunities, including a popular ETF that counts Apple and Boeing (BA) among its top holdings.
In just two weeks, SPDR Dow Jones Industrial Average ( DIA ) crashed 12% from its Jan. 26 intraday high to its Feb. 9 session low. But it extended its win streak Thursday to five days and recovered its 50-day moving average . With the market back in a confirmed uptrend, a solid move above the support line sets up a potential buy area.
The ETF advanced 22% from a mid-August bounce off the 50-day to its Jan. 26 peak. It was last featured in this ETF column on Sept. 15. At that time, it was still in buy range from the pullback to the line.
The $22.7 billion behemoth, which celebrated its 19th anniversary last month, tracks the Dow Jones industrial average. The price-weighted index is composed of 30 blue chip U.S. stocks. The top 10 holdings as of Feb. 14 included Boeing, Goldman Sachs (GS), Apple, Caterpillar (CAT) and Travelers (TRV). Together, the top 10 stocks accounted for 56% of total
assets.
Boeing leads the five stocks mentioned above with a 21% gain year to date. Goldman Sachs was up 5% for the year, through Thursday's close. Travelers followed with a 4% return, while Apple and Caterpillar had climbed 2% each.
Apple had a big day Thursday, rising more than 3% to retake its 50-day line. Billionaire investor Warren Buffett's Berkshire Hathaway (BRKB) disclosed in a regulatory filing an increased stake in the iPhone maker in Q4.
IBD'S TAKE:Apple stock has an IBD Composite Rating of 77 out of a best-possible 99. For more analysis on Apple, visit the IBD Stock Checkup .
DIA's 0.8% year-to-date return through Feb. 14 trails the S&P 500's 1.2% gain, according to Morningstar Direct. The ETF's average annual returns of 14.8%, 9.9% and 10.5% over the past five, 10 and 15 years are roughly in line with the benchmark index. DIA carries a 0.17% expense ratio.
Thursday's pick, SPDR Select Consumer Discretionary (XLY), is near the top of a potential buy range from a rebound off the 50-day moving average.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
