Boeing (BA) and Lockheed Martin (LMT) rebounded during a volatile session Friday as stock investors continued to weigh the consequences of President Trump’s decision to go ahead with another $50 billion in punitive tariffs against Chinese imports.
Meanwhile, Apple (AAPL), which targets China as a key market for its iPhone, iMac and other consumer electronics gadgets, suffered its sixth straight down day, losing 3.91, or 2%, to 164.94 in mildly below-average volume. The largest company by market value on the U.S. exchanges, Apple is now down 2.5% since Jan. 1.
The Dow Jones industrial average dropped 0.7% with about an hour left in the trading session. Boeing did the heavy lifting among the 30 components, rising 5.8 points, or 1.8%, to 325.41. Nike (NKE) was the only other Dow stock to gain nearly 1 point or more. The Nasdaq composite fell 1.4% while the S&P 500 lost 1.2%.
Volume is running slightly lower vs. the same time on the Nasdaq and a bit higher on the NYSE.
Apple, the megacap tech, trades more than 8% below a recent new all-time peak of 183.50.
For those who have held Apple since its game-changing January 2017 breakout from a first-stage cup with handle at 118.12, the best move right now is to make no move at all.
With such a big profit cushion, an investor can afford to sit out the current storm of selling and see if Apple has enough muscle to either form a new base or simply keep registering higher highs and higher lows.
Go to a daily chart on MarketSmith, IBD’s premium institutional-quality stock charting and screening service, and you’ll see that the stock may be ready to test buying support at the long-term 200-day moving average. In early February, Apple poked beneath this support level, closed below it for several days, then rebounded sharply as the Nasdaq triggered a new uptrend with a Day 4 follow-through on Feb. 14.
Lockheed, the F-35 jet maker, rallied more than 3% to 339.10 in heavy turnover and is trying to reclaim its 50-day moving average. The stock maintains a modest gain since clearing a 322.29 buy point in an eight-week flat base in December.
The Street sees continued steady earnings growth for Lockheed, with earnings rising 13% to $15.55 a share this year and another 15% in 2019.
The aerospace/defense industry group shows a 4.1% gain year to date while the S&P 500 is now down nearly 2%.
In IBD Stock Checkup, Lockheed sports a 76 Composite Rating on a scale of 1 to 99, ranking 17th within the Aerospace/Defense industry group in this metric. Ideally, growth investors would prefer those companies that show a 90 Composite or higher.
The S&P 600 is down 1.5% but it too is outperforming its large-cap elder.
(Follow Saito-Chung on Twitter at @IBD_DChung for more commentary on leading growth stocks, buy points, sell signals, and financial markets.)
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