By Yasin Ebrahim
Investing.com – The Dow closed just below the flatline Thursday as strength in tech, led by a rally Intel (NASDAQ:) and Apple, was offset by weakness in energy.
The fell 0.04%, or 12 points. The was up 0.03%, while the gained 0.55%. The S&P and Nasdaq closed at record highs.
Apple (NASDAQ:) rose 4% as analysts continued to talk up the stock ahead of its quarterly report due Jan. 27.
Morgan Stanley (NYSE:) raised its price target on Apple to $152 from $144 on expectations that high demand for the iPhone 12 will see unit growth return, while services will get a boost from the work-from-home trend.
“Given positioning into the quarter is muted after the rotation out of high-quality stocks over the past several months, we expect strong follow-through post-earnings and are buyers into the print,” Morgan Stanley said.
Consumer stocks were also among the biggest gainers, led by a jump in Ford.
Ford (NYSE:) rose 6% ahead of its earnings as investors look ahead to further guidance from automaker on a number of key models including its new EV strategy. Ford reports earnings on Feb. 4.
Energy, however, fell 4% as oil prices fell following data on Wednesday showing a surprise build in weekly supplies.
The sector was also dragged lower by Exxon Mobil (NYSE:), down 3%, after Jefferies (NYSE:) initiated coverage on the oil major at underperform, with a $39 target, on worries over its dividend coverage.
Industrials were in the red, paced by a 6% slump in United Airlines (NASDAQ:) after the carrier indicated that the recovery in air travel wasn’t likely to bounce back as quickly as many expect.
United Airlines said 2021 would be a “transition year that’s focused on preparing for a recovery.”
American Airlines Group (NASDAQ:), Southwest Airlines (NYSE:), and Delta Air Lines (NYSE:) also traded lower.
In other news, homebuilders rallied after data showed housing starts rose by the fastest pace since 2006. The iShares U.S. Home Construction ETF (NYSE:) jumped 1.5%.
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