The Dow Jones Industrial Average was virtually flat as the stock market struggled to make headway Tuesday. Boeing (BA) and Walt Disney (DIS) were the blue chip standouts, while Amazon (AMZN) was forced lower amid news it is being sued by the DC Attorney General on competition grounds.
Meanwhile IBD Sector Leader stock LGI Homes (LGIH) is offering a new buy point as it stages a rebound. It comes amid a new report showing home prices spiked at the fastest rate in more than seven years.
It also emerged Tuesday that the Conference Board’s consumer confidence index dipped to 117.2 in May from 117.5 in April. One silver lining is April’s reading was the highest since February 2020, before the start of Covid-19 lockdowns.
Nasdaq; S&P 500 Struggle
The Nasdaq was virtually flat, with the tech stocks rally struggling for momentum. Leaderboard stock Applied Materials (AMAT) was the biggest winner, gaining almost 3%. Chip stock Micron Technology (MU) was among the main laggards, falling 2%.
The S&P 500 was also struggling for direction and also in neutral territory. Royal Caribbean Cruises (RCL) was the big winner, sailing 4% higher. Data storage stock Seagate Technology (STX) was struggling, falling almost 5%.
U.S. Stock Market Today Overview
Last Update: 1:18 PM ET 5/25/2021
The S&P sectors were mixed, with real estate and consumer discretionary posting the biggest gains. Energy and utilities were the biggest laggards.
Small caps were struggling a bit more than the major indexes, with the Russell 2000 slipping 0.1%. Growth stocks were faring better however, with the Innovator IBD 50 ETF (FFTY) up 0.3%.
Boeing Stock Climbs As Dow Jones Flatlines
The Dow Jones Industrial Average was also flat but remains above its 50-day moving average.
Boeing was the top performer of the day so far, gaining more than 2%. It remains below its 50-day line however.
Walt Disney also made up some ground rising, just over 1%. However there were plenty of names holding the index down, with Amgen (AMGN) faring worst with a drop of almost 2%.
Amazon Stock Dips Amid Antitrust Lawsuit
Amazon stock slipped amid news the firm is being sued by Washington, D.C., Attorney General Karl Racine. The stock was down around 0.1% and lost ground on it 50-day moving average.
Racine announced he is suing the e-commerce giant on antitrust grounds. The lawsuit claims the firm’s practices have raised prices for consumers and suppressed innovation.
It also alleges Amazon illegally maintained monopoly power through pricing contracts with third-party sellers.
Amazon said in a statement the DC Attorney General is wrong, and that “sellers set their own prices for the products they offer in our store.”
This Top Stock Offers Buy Point As Housing Soars
IBD Sector Leader stock LGI Homes is in a buy zone as it stages a bullish rebound from the 10-week moving average. The ideal buy point here is 166.17.
Volume has been light during the move, which is a negative. However the stock has a perfect IBD Composite Rating of 99 and is up 65% so far in 2021.
It comes as a new report emerged Tuesday showing house prices across the country are going through the roof.
The S&P CoreLogic Case-Shiller 20-city home price index was up 13.3% in March compared to the previous year. This was the biggest gain since December 2013.
That increase followed a surge of 12% in February. Home prices have been buoyed amid low interest rates and high consumer demand, especially among millennials starting families.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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