The Dow Jones Industrial Average was holding steady Wednesday as small cap stocks handily outperformed the major indexes. Amazon (AMZN) stock was up slightly as CEO Jeff Bezos announced his official departure date. Meanwhile Nike (NKE) was the top-performing blue chip.
Ford (F) was added to the prestigious Leaderboard list of top growth stocks amid bullish EV news, while Logitech (LOGI) and outsourcing stock TTEC (TTEC) passed buy points. Finally, Exxon Mobil (XOM) was up after an activist hedge fund won seats on its board.
Nasdaq Up As Small Caps Lead
The tech-heavy Nasdaq was the leading major index, squeezing out a gain of around 0.6%. At-home fitness stock Peloton Interactive (PTON) was the top performer, gaining around 11%.
The S&P 500 was also up, though its gain of 0.2% was slight. Penn National Gaming (PENN) was among the standout performers here, rising more than 4%.
The S&P sectors were mixed, with consumer discretionary and communication services posting the biggest gains. Consumer staples and health care were the biggest laggards.
Small caps were posting notable outperformance, with the Russell 2000 up 1.9%. Growth stocks were faring even better, with the Innovator IBD 50 ETF (FFTY)up more than 2%.
Nike Stock Leads As Dow Jones Struggles
The Dow Jones Industrial Average was also flat but remains above its 50-day moving average.
Nike was the leading component, posting a gain of more than 2%. However it remains mired in a long consolidation, and is trading just above its 50-day line. The relative strength line is showing signs of improvement, however.
Walgreens Boots Alliance (WBA) was the major laggard in the Dow Jones in a tough day for health care stocks. It was down more than 3%, trading near consolidation lows.
Amazon Up As Jeff Bezos Announces Departure Date
Jeff Bezos announced Wednesday he will to formally step down as Amazon CEO on July 5.
“We chose that date because it’s sentimental for me, the day Amazon was incorporated in 1994, exactly 27 years ago,” Bezos said.
The firm’s cloud-computing boss Andy Jassy will take over the role. This is appropriate, as this is the business which makes the firm the bulk of its profits. Jassy has served as CEO of Amazon Web Services since its inception in 2003.
Bezos is going to step into a new role as executive chairman of Amazon’s board following his departure. His departure was first announced in February, but no departure date was given.
Amazon stock remained up around 0.5% following the announcement. It is currently trading around its converged 50 and 200-day lines.
The firm also announced it is acquiring iconic film studio Metro-Goldwyn-Mayer for $8.45 billion. Amazon hopes this will boost its position in video streaming, and increase the value of its Amazon Prime service.
Ford Stock Among Names Passing Buy Points
Ford is in a buy zone after clearing a cup without handle buy point of 13.72. The buy range tops out at nearly 14.41.
Its move comes after the iconic automaker announced more spending on electric vehicles and predicted a sharp drop in costs for EV batteries during an investor day.
Ford was added to IBD Leaderboard after it cleared the new base.
Logitech is in a buy zone after clearing a cup with handle buy point of 117.24, according to MarketSmith analysis. This is a third stage base, which is not ideal, but the stock has a perfect EPS Rating of 99.
Outsourcing stock TTEC broke out of a flat base with an ideal entry point of 110.05. The RS line has just hit a new high, which is an encouraging sign. Earnings and stock market performance are strong
Exxon Mobil Stock Up As Activists Seize Board Seats
Exxon Mobile stock gained slightly after a hedge fund won two board seats. XOM stock was up almost 1%, but remains just above its 50-day line after a cup base breakout failed.
Shareholders elected two of hedge fund Engine No. 1’s nominated directors to the board. It comes after a monthslong battle over its business strategy and growth plans.
Gregory Goff and Kaisa Hietala will join the board. The hedge fund is pushing the company to take a more active role in battling climate change.
It comes as Chevron (CVX), the US’s second-biggest oil company, voted in favor of a resolution calling on the company to cut its carbon emissions.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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