Growth Stocks Smash Dow Jones; Buffett Stock Plunges

Top-rated growth stocks in the financial services, digital advertising and telecom sectors staged gains that triumphed over a roughly 0.6% lift by the Dow Jones Industrial Average, including Dow Jones component Visa (V). The credit card and debit card transactions giant rallied more than 1.3% and moved past a 145.82 buy point in a base that features elements of a double bottom.




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Visa’s credit card processing industry group ranks a decent No. 52 out of 197 IBD industry groups, according to IBD Stock Checkup. Visa earns a smart 95 Composite Rating on a scale of 1 (awful) to 99 (awesome).

The 5% buy zone in Visa extends up to 153.11.

Top Growth Stocks Crushing The Dow Jones Return

Meanwhile, Trade Desk (TTD), Acacia Communications (ACIA), Workday (WDAY) and Xilinx (XLNX) continued to flex market leadership. All four have broken out and staged impressive gains from their respective buy points.

Stocks wobbled a bit in the final 75 minutes of trading on remarks by President Trump on the status of trade talks with his China counterpart Xi Jinping. The Nasdaq composite, up as much as 0.9% in the early going, cut its gain to around 0.4%.

The S&P 500 rose about 0.3%, the S&P SmallCap 600 nearly 0.2%. Volume was running sharply higher vs. the same time Thursday on the Nasdaq and a touch lower on the NYSE.

This Warren Buffett Stock Slides Deeper Below Its Highs

On the down side, Kraft Heinz (KHC) gapped down at the open and plunged more than 26% to an all-time low. At 34, the packaged food giant is now well below its October 2012 debut when it finished that month near 37.

The owner of many long-standing brands in cheese, pickles and condiments reported an SEC probe of its accounting practices. Warren Buffett’s Berkshire Hathaway (BRKA),  the largest holder of Kraft Heinz shares, fell nearly 2%.

Kraft Heinz reported a disappointing 7% drop in Q4 profit to 84 cents a share, 9 cents below the consensus view, as sales gained 1% to $6.89 billion. The company also recorded non-cash asset impairment charges of $15.4 billion to lower the carrying amount of goodwill in certain units, namely US Refrigerated and Canada Retail.

Kraft Heinz long showed poor stock action for months.

The right time to exit the stock came in June 2017, when Kraft Heinz failed to complete a nearly four-month flat base that showed a 97.87 buy point. The stock did not break out. Instead, shares slid below both the key 10-week and 40-week moving averages.

By late July the same year, Kraft Heinz’s 10-week line was tilting lower. The stock made multiple rebound attempts, but failed to rise back above the key support-and-resistance chart indicator.

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

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