The Dow Jones Industrial Average was slightly higher in afternoon trading Wednesday amid a mixed stock market session ahead of the release of the latest Federal Reserve minutes. Apple (AAPL) was a top blue chip performer once again, driving higher in a buy zone.
Meanwhile, Warren Buffett stock RH (RH) passed a buy point, with Chipotle Mexican Grill (CMG) also trying to stage a breakout. And AMC Entertainment (AMC) was diving again as meme stocks came under pressure.
Money flowed into bonds again, sending the 10-year Treasury yield lower by 3 basis points to 1.342%.. It fell to to 1.30% Wednesday morning, the lowest level since mid-February.
The Fed minutes from the June meeting will be released today at 2 p.m. ET, with policymakers likely providing more details about when they shall officially start tapering bond buys.
Nasdaq, S&P 500 Gain
The Nasdaq was fighting to move into positive territory, but was down around 0.1%. Verisk Analytics (VRSK) fared best with a gain of more than 2%. Covid vaccine play Moderna (MRNA) was the biggest laggard, dipping more than 4%.
The S&P sectors were mostly positive, with technology and industrials faring best. Energy and financials were the biggest laggards.
U.S. Stock Market Today Overview
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Small caps were once again struggling, with the Russell 2000 giving up almost 1%. Growth stocks were given an even stiffer spanking by the bears, with Innovator IBD 50 ETF (FFTY) dipping almost 2%.
Dow Jones Swells As Apple Stock Rises
The Dow Jones Industrial Average managed to stay positive, turning in a gain of 0.1%.
Apple stock was once again flexing its muscles, turning in a gain of around 1.4%. The relative strength line is continuing to rise.
The stock got a boost Tuesday after JPMorgan Chase raised its price target to 170 from 165 and maintained an overweight rating.
Apple stock drove higher in its buy range. Volume was running well above average.
Home Depot (HD) was another Dow Jones winner for Wednesday, and was vying with Apple to be the day’s top component. It was up around 1.3%.
Warren Buffett Stock Passes Buy
Warren Buffett stock RH clawed its way past a cup with handle base buy point of 719.87, MarketSmith analysis shows. However it is currently sitting just below the entry.
Volume is above average, which is encouraging, but investors will want to see the relative strength line pick up.
Warren Buffett is a noted backer of RH stock, with his firm Berkshire Hathaway (BRKB) currently holding almost two million shares.
Institutional ownership is a key strength of the stock, with 89% of RH shares currently being held by funds. The T. Rowe Price New Horizons Fund (PRNHX) is another noteworthy supporter.
Chipotle Mexican Grill (CMG), meanwhile, rose just above a cup base entry point of 1,579.62. It remains in its buy zone. The RS line is spiking here, which is encouraging.
Volume was around 31% lower than usual, which is not ideal for a breakout. The strongest breakouts tend to occur in volume at least 40% higher than normal.
CMG stock is actionable up to 1,658.60, and it boasts a near perfect IBD Composite Rating of 97. Market performance is currently a weakness.
AMC Stock Dives
Meme stocks were struggling once again on Wednesday.
AMC stock, the most prominent of all meme stocks at the moment, was getting spanked. While it rallied off lows, it was still down more than 7%%.
It is on track for a fourth down day in a row, though it remains up just over 2,000% so far this year.
The cinema stock currently has dreadful earnings performance, but massive price spikes have caused its Relative Strength Rating to reach a perfect 99.
GameStop (GME), the most noted name of the meme stock phenomenon, was also struggling. It gave up almost 5%, but remains up more than 900% for the year.
Last week Baird suspended coverage of the video game retail stock due to Reddit influence and a perceived lack of a company plan.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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