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Stocks Close Lower; Breakouts In Industrial Giants Share A Common Flaw

The stock market closed lower as the Dow Jones industrial average snapped its nine-session winning streak.

The Dow fell 0.2%. It was the longest win streak since a July-August stretch. The S&P 500 lost 0.3% and the Nasdaq composite 0.5%. Weakness in solar energy, some software, fiber optics and smaller retailers contributed to the Nasdaq's drop.

X Volume was lower from Wednesday's totals, according to early figures.

The day's breakouts included several industrial giants, although weak volume made some questionable.

General Dynamics (GD) edged past the 206 entry of a flat base, but the price gain of less than 1% and light volume made the move to new highs suspicious.

Union Pacific (UNP) cleared the 115.25 buy point of a 21-week base. Volume was about one-third less than average, and the the past couple of breakouts have not engendered big price gains for the rail company.

Honeywell (HON) broke out of a flat base, rising past its 140.31 buy point. Volume was more than 50% higher than usual, a robust increase.

Meanwhile, a buyout in the building materials industry caused ripple effects in that sector.

Ireland-based CRH (CRH) agreed to acquire privately-held Ash Grove Cement in a $3.5 billion deal. The news seemed to fan hopes for more mergers in the field.

U.S. Concrete (USCR) rose more than 1% in above-average volume. Interface (TILE) broke out past a 21.15 buy point but volume was unimpressive for the flooring tile company.

The most notable loser in big volume was Nvidia (NVDA). Shares gapped down in active trading, but the stock held above its 174.66 buy point from last week's breakout. The chip company's stock faces a difficult task of advancing from a late-stage base, but outstanding companies with superior fundamentals like Nvidia sometimes can make longer advances than normal.

Nvidia slid after a report that Tesla (TSLA) is working with Advanced Micro Devices (AMD) on new chips for autonomous driving, an area in which Nvidia does business.

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