Stock Market Pares Losses, Nasdaq Leads As Growth Stocks Break Out

Key stock indexes pared their losses heading into the last hour of trade in the current stock market, as the Nasdaq flirted with the break-even line thanks to breakouts from several growth stocks.




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The Dow fell 0.7%, the S&P 500 was down 0.3%, and the Nasdaq was barely underwater. Small caps were tracking close to the Nasdaq as the Russell 2000 was flat. Volume was lighter on both the NYSE and Nasdaq vs. the same time Thursday.

Medical, consumer products and auto parts stocks led the downside in the current stock market. But telecom, software and other computer-related issues advanced.

Blue chip health care names UnitedHealth Group (UNH) and Walgreen Boots Alliance (WBA) dragged the Dow with respective losses of 3% and 2%. UnitedHealth, which is shaping a cup with handle with a 272.54 potential entry, is close to testing its 50-day line. Walgreen undercut its 200-day line for the first time in over a month.

Also on the Dow, Intel (INTC) fell 1%. But most other big-cap techs fared better. Cisco Systems (CSCO), Apple (AAPL) and IBM (IBM) climbed more than 0.2% each, while Microsoft (MSFT) was nearly flat.

The Nasdaq was boosted by the big-cap techs as well as rallying telecom stocks. The telecom-infrastructure group soared 6%, thanks to big moves by Ubiquiti Networks (UBNT) and Viasat (VSAT).

Growth Stocks Break Out

Ubiquiti surged 16% to a new high, clearing a 115.54 buy point in heavy trade. Since shares staged a strong earnings gap-up, investors can also use the 120.50 opening price as an entry. The networking gear maker, which was featured in Thursday’s IBD 50 Stock Of The Day column, reported fiscal Q2 results that topped views.

Viasat gapped up and leapt 12% to an 11-month high in fast turnover, also after delivering quarterly results. The stock rose past a 72.06 buy point. But a 5 Earnings Per Share Rating and a 39 Composite Rating leave much to be desired.

Ubiquiti led the IBD 50, followed by Euronet Worldwide (EEFT), which vaulted 13%. Shares shot past a 116.48 buy point of a cup with handle and are now extended. Euronet, the IBD 50 Stock Of The Day, announced strong earnings and guided for Q1 EPS above forecasts.

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