The S&P 500 climbed within inches of a record high Thursday afternoon, as the stock market rose moderately but small caps broke a trend of outperformance.
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The S&P 500 climbed 0.2% to 4,791, leaving the index within 27 points of its prior record high 4,818, reached nearly two years ago.
The Nasdaq composite edged up 0.1%. The Nasdaq’s 6.3% increase this month, if it holds, would make it its best December since 1999, when it gained 22%.
The Innovator IBD 50 ETF (FFTY), a proxy for growth stocks, fell 0.9%.
The Dow Jones Industrial Average rose 0.3%, adding to its streak of record highs.
3 Dow Stocks Test Buy Points
Three Dow components tested buy points on Thursday’s stock market. Amgen (AMGN) is trying to break out past a 288.46 entry, while McDonald’s (MCD) is trying to clear a 295.97 handle buy point. And Goldman Sachs (GS) is poking above a 386.20 handle buy point. All three, however, suffer from weak volume today.
Meanwhile, fellow Dow component Merck (MRK) climbed back above its 200-day moving average for the first time since Sept. 1. Apple (AAPL) climbed only 0.4% but it is a significant move because it showed the stock is getting some support at its 21-day exponential moving average.
Small caps underperformed, with the Russell 2000 down 0.5% in afternoon stock market trading. The Russell has surged more than 20% since the week ended Nov. 10, more than doubling the Nasdaq’s gain of about 10% in the same period and the S&P’s 8.5% advance.
Thus, a pullback or moderation in the small-cap rally should come as no surprise. This month, the Russell 2000 is on pace to outperform the S&P 500 by its largest margin in any month since February 2000, according to Dow Jones Market Data. The Russell is also having its best December on record.
Volume fell on the New York Stock Exchange and slid on the Nasdaq compared with the same time on Wednesday. Declining stocks slightly outnumbered advancing stocks on both exchanges.
The major stock market indexes rose despite a bounce in the 10-year Treasury note, which was up 7 basis points to 3.85%. Although there was economic data out earlier today, the bond market may be reacting to a poorly received sale of 7-year notes.
Marathon, NeoGenomics Among Stock Market Losers
Marathon Digital (MARA) slid more than 8% in heavy trading. The stock appears to be cooling off after more than tripling in price the past 5-1/2 weeks. The stock had climbed more than 50% above its 50-day moving average, a level that has marked peaks for the cryptocurrency stock in the past, as IBD cautioned Wednesday.
NeoGenomics (NEO) gapped down sharply in heavy trading Thursday, losing more than 18%. The stock is 16% below its 19.78 buy point, which is a sell signal. The oncology testing services company is also piercing its 50-day moving average, another likely sell signal.
A federal court Wednesday issued a preliminary injunction against the company involving patent litigation with Natera (NTRA). NeoGenomics said today it will appeal. Natera shares were up 1.5%.
SQM (SQM) climbed 2.6% but met resistance on the stock market at its downward-trending 200-day moving average. The Chile-based lithium and fertilizers producer is more than 36% below its 52-week high amid slumping sales and earnings. The company and the National Copper Corporation of Chile, or Codelco, have formed a partnership to develop lithium in the northern part of Chile.
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Source: investors.com
