Dow Jones Eases, But Top Growth Stocks Deliver Strength

The Dow Jones Industrial Average surrendered only a measured amount of recent large gains, losing almost 0.7% with an hour to go in stocks today. The blue-chip index looks poised to finish lower during the holiday-shortened week, but at 25,820 the Dow Jones so far shows just a 0.2% loss for the week.




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The S&P 500 and the Nasdaq composite pretty much matched the Dow Jones’ moderate loss. Volume had been running modestly higher early in the session, but is now a touch lighter vs. the same time on Wednesday.

Thursday’s action also saw some top growth stocks take a tumble, while others held firm.

Domino’s Pizza (DPZ) tanked more than 8% in heavy trade and undercut its 50-day moving average after Q4 earnings (up 25%) and sales (up 21%) both missed the consensus view. Forex headwinds played somewhat of a role in that miss. The world’s No. 1 pizza restaurant chain by net sales has been investing heavily in its overseas footprint.

Thinly traded Huami (HMI) is catching its breath, sinking more than 4% in heavy turnover. The China-based wearables maker has throttled past a 15.19 buy point in a deep, early-stage cup-style base. The Street sees Q4 earnings rising 41% to 31 cents a share.

These Top Growth Stocks Buck The Drop

Ciena (CIEN), Acacia Communications (ACIA) and Trade Desk (TTD) have been holding firm. Ciena has broken out past a 40.26 buy point in an unusual ascending base and is getting close to exiting the 5% buy zone.

Ciena, a key supplier of fiber-optic networking gear, is currently a top-performing member of IBD Leaderboard. In addition to a solid 93 EPS Rating, the Hanover, Md.-based firm is expected to post a 100% rise in fiscal first-quarter earnings to 30 cents a share. Earnings rose 37% and 66% in the prior two quarters.

Acacia is making more upside progress since it cleared a 44.73 entry point in a 15-week cup with handle.

Trade Desk, the omnichannel platform for ad buyers, reports Q4 results after the close. The Street expects a 43% lift in profit to 77 cents a share.

Please follow Chung on Twitter at @IBD_DChung for more on top growth stocks, breakouts, sell signals and financial markets.

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