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Nasdaq Rises To Lead Stock Indexes; Tiffany Breaks Out | Stock News & Stock Market Analysis

U.S. stock indexes added modest gains midday Thursday. The Nasdaq led even as the Dow Jones industrial average pushed to a new high.

Volume was running below the previous session’s pace on both major exchanges.

X The Nasdaq advanced 0.2%, while the Dow and the S&P 500 inched up 0.1% each. The small-cap Russell 2000 crept 0.2% lower. For the year, the Dow is up 25%, close behind the Nasdaq’s 28% pop.

Blue chip stocks were mostly up. In the Dow, Boeing (BA) led with a 1.4% gain. Visa (V) was second with a 0.6% rise. Neither stock is near a legitimate buy point. Boeing is just under its 20% profit-taking level, according to IBD’s investment rules.

In the S&P 500, breakouts included Tiffany & Co. (TIF). The jewelry store chain gapped up 3% in strong volume on an analyst upgrade. Citigroup upgraded Tiffany from neutral to buy and raised the price target to 115, almost 20% above Thursday’s closing price of 96.10.

Tiffany’s Breakout

Tiffany’s stock has been trading in a shallow channel since late March. Support was found repeatedly at 84 to 86 and resistance emerged regularly around 97. Thursday’s gap up cleared the entire consolidation. The buy point is 97.39 and the 5% buy zone is capped at 102.25.

Tiffany’s 2018 fiscal year ends in January. The Street expects earnings to rise 8% after two years of declines. Tiffany is No. 2 in its stock group in Stock Checkup at Investors.com.

In the IBD 50, retailer Floor & Decor (FND) rose 4% in heavy volume. The stock cleared a low handle Dec. 4. Although low handles are prone to failure, the stock has advanced. Floor & Decor is now closing in on a 47.09 buy point.

U.S. Retail Sales Bullish

Industrywide, retail sales for November surged 0.8%, far above the consensus view of 0.3% and topping the highest estimate in the range which was 0.5%. Meanwhile, Challenger, Gray & Christmas said November retail employment was 451,600, the highest November total in five years.

Other economic data included first-time jobless claims which fell to 225,000, about 6% below expectations.

IBD 50 ETF

Meanwhile, the Innovator IBD 50 Fund (FFTY) moved sideways Thursday as it tried to retake its 50-day line. The exchange-traded fund, based on the IBD 50, is up 37% for the year.

Among IBD’s 197 industry groups, the medical wholesale drug suppliers and chip equipment makers rose Thursday. Meat products fell the most.

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