IBD Digital 2 months for $20 offerIBD Digital 2 months for $20 offer


Dow Leads As Trump Sworn In, But Stocks Close Lower For The Week

Stocks closed modestly higher Friday, following Donald Trump's inauguration speech.

Trump continued a series of ceremonies after he was sworn in as president today, while dozens were arrested in sometimes-violent protests in Washington, D.C.

The Dow Jones industrial average led key indexes, thanks to big gains by Merck (MRK), IBM (IBM) and Procter & Gamble (PG).

The Dow closed with a 0.5% gain; the S&P 500 and Nasdaq added 0.3% each. Volume was mixed, higher on the NYSE but lower on the Nasdaq, according to preliminary data. The Dow and Nasdaq shed 0.3% for the week, while the S&P 500 dipped less than 0.2%. The small-cap Russell 2000 posted a 1.5% weekly loss.

Chipmakers, department stores and oil stocks were among top gainers in the stock market today. West Texas intermediate crude prices surged 2% to $53.17 a barrel. Gold stocks advanced too, as gold futures climbed 0.5% to $1,210.40 an ounce.

Medical, fiber optics and defense issues underperformed. But Merck led the Dow with a 3.65% gap up in healthy trade as shares work on the right side of a flat base. The potential buy point is 65.56. Bristol-Myers (BMY) said it won't pursue accelerated approval for its Opdivo lung cancer drug, a potential rival to Merck's Keytruda. Bristol shares gapped down and plunged 11.3%, hitting their worst levels since late 2014.

Procter & Gamble added 3.25% and IBM 2.2%, but General Electric fell 2.2% to breach its 200-day moving average in fast turnover. The industrial giant reported mixed Q4 results. IBM is trying to clear resistance at 170.

Intel (INTC) climbed 1% amid a broad chip rally. It's working on the handle to a cup base with a 37.44 buy point. Mizuho Securities in a Wednesday report named Intel and Nvidia as two of several chip stocks that could benefit from artificial intelligence and deep learning. It rates both stocks a buy. Chipmakers rose more than 2% Friday.

Apple (AAPL) pared its early gain and closed up 0.2% at 120. The iPhone maker's shares have yet to show a strong follow through from a Jan. 6 breakout past a 118.12 buy point. The stock's RS Rating is soft, too. Macquarie Research on Friday reiterated an outperform rating and raised its price target to 148 from 133, citing Apple's services business.

Drugstore stocks fell sharply as Walgreens Boots Alliance (WBA) and Rite Aid (RAD) sank 2.1% and 13.3%, respectively, amid reports the Federal Trade Commission isn't happy with their proposed offer to gain approval for their merger. Both stocks undercut their 50-day and 200-day lines in heavy volume.

Bank stocks led the upside in the IBD 50. Wintrust Financial (WTFC) and Bank of the Ozarks (OZRK) gained more than 3% each as both stocks test their 10-week moving average. They're 5%and 4% off recent highs, respectively, as they take a breather from a big postelection advance.

Chip stocks Microsemi (MSCC) and Broadcom (AVGO) outperformed too. Microsemi is 2% off a Jam. 11 high as it continues to ride its 50-day line. Broadcom is at all-time highs and now extended past a 178.12 buy point cleared in December.

Nvidia (NVDA) sat out the chip stock rally, down 1.1%. But volume was well below average as the stock continues to digest big 2016 gains. The graphics chip designer displayed climax-top like action in late December, but its pullback thus far has raised no alarms.

RELATED:

Walgreens Falls, Rite Aid Dives As FTC Reportedly Opposes Merger Offer

Did You Miss Nvidia's Big Breakout Last Year? Don't Miss The Next One

Bristol-Myers Dives To 2-Year Low On Opdivo Lung Cancer Setback; Merck Jumps