The major market indexes kept their rallying ways going this week as the NASDAQ Composite and S&P 500 Indexes both posted higher highs on higher volume Friday. The NASDAQ eked out its highest high since the Christmas Eve lows on just barely higher volume while the S&P pushed higher on a relatively more robust volume increase. Either way, the market uptrend remains intact.
While it didn’t post a higher high, the Dow Jones Industrials stole the show on Friday with a 1.03% gain as compared to the S&P’s 0.66% gain and the NASDAQ’s 0.44%. The Dow was led higher by Walt Disney Co. (DIS) after it announced its new Disney+ streaming-video service. By pricing the new service at $6.99, DIS took direct aim at Netflix (NFLX), which took a hit on Friday.
Volume poured into DIS shares as the stock posted a buyable gap-up (BGU) with an intraday low of 126.36. The stock closed at 130.06, just within buying range, but any pullback closer to 126.36 from here would obviously create a lower-risk entry opportunity. It’s difficult to say that DIS is the next NFLX, but the volume speaks for itself. Certainly, if the stock sold at the same valuation as NFLX, it would have much more upside room from here.
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