Key market index funds were mixed in afternoon trading. The Dow Jones industrial average turned positive amid big gains from Intel (INTC), Caterpillar (CAT) and DowDuPont (DWDP).
X PowerShares QQQ Trust (QQQ) advanced 0.3%. SPDR S&P 500 (SPY) was up 0.2% and SPDR Dow Jones Industrial Average (DIA) edged 0.1% higher. Emerging markets outperformed as Asian markets rallied on reports that North Korea may be willing to discuss denuclearization; iShares MSCI Emerging Markets (EEM) gained 1.1%.
Gold miners, semiconductors and homebuilders led the upside among sector funds in the stock market today. Intel gapped up and leapt 3% to its highest level since 2000, before paring its gain to 1.6%. The chip giant was the Dow's biggest gainer. Among other chip stocks, graphics chip designer and artificial intelligence player Nvidia (NVDA) surged 2.3%.
But Apple (AAPL) reversed to a 0.3% loss. The iPhone maker's shares have held above their 50-day moving average since retaking the line Feb. 15. It hasn't been able to stay above the 180 level.
SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) gained more than 1% each after finding support at their 50-day lines. That presents a potential buy opportunity, though all purchases are riskier than usual with the market uptrend under pressure. Gold futures rose 1.2% to $1,336 an ounce. GLD and IAU were featured in this ETF column on March 1.
Bitcoin dropped 7% to $10,664.22, according to CoinDesk, sliding back below the $11,000 level. Bitcoin Investment Trust (GBTC) fell 7% as it continues to hit resistance at its 50-day. It's been trading below the line since mid-January.
Utilities, consumer staples and health care lagged.
Topped By Apple
Apple, Microsoft (MSFT) and the FANG stocks are among top names held by a big-cap fund that reclaimed its 50-day moving average on Monday.
Like many other similar ETFs, iShares Russell 1000 Growth (IWF) is recovering the 50-day moving average after initially giving it up during the Feb. 5 market rout. In a confirmed market uptrend, a solid move above the 50-day line would mark a buy opportunity. But under less ideal conditions, all purchases are riskier than usual.
IWF rose 19% from a late-September bounce off the 50-day line to its Jan. 29 high. It had consistently found support at and advanced along the support line since November 2016.
The $40.4 billion fund, which tracks the Russell 1000 Growth Index, will mark its 17th anniversary in May. The index measures the performance of the midcap and large-cap growth sectors of the U.S. stock market. Information technology accounted for nearly 39% of assets as of March 2, followed by 18% in consumer discretionary, 13% health care and 12% industrials.
The top five holdings are Apple, Microsoft, Amazon (AMZN), Facebook (FB) and Alphabet (GOOG). Together, they made up about 22% of the 550-stock portfolio. Netflix (NFLX) made the top 20 holdings. Apple has been trading between its 50-day line and about the 180 level since Feb. 15. JPMorgan on Friday lowered its production forecast for the iPhone X, but Apple's shares rose both Friday and Monday.
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Of the stocks mentioned above, Netflix leads with a year-to-date gain of 64% through Monday. Amazon has risen 30%, Microsoft 10% and Apple 5%. Facebook lags with a 2% return.
The ETF's 3.4% gain this year as of March 2 outpaces the S&P 500's 1% year-to-date return. Average annual returns of 12.7%, 16.6% and 11.3% over the past three, five and 10 years, respectively, also beat the S&P index for those periods. IWF's 15-year average annual return is about 11%, just ahead of the S&P 500's 10.3% gain. The fund carries a 0.20% expense ratio.
Monday's pick, First Trust Nasdaq 100 Technology Sector Index Fund (QTEC), is near the top of a potential buy zone from a Friday rebound off the 50-day line. But remember, the market uptrend is under pressure.
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