Stock News Today: Amazon Earnings Fuel More Tech Selling

The Nasdaq composite took another hit Friday, ending with a loss of 2.1%, after slumping 3.6% intraday. Weak sentiment in the stock market today was fueled by sluggish earnings reports from Google parent Alphabet (GOOGL) and Amazon.com (AMZN). In other stock news today, Burlington Stores (BURL) outperformed, closing just off an all-time high.




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Amazon and Alphabet were among several weak performers in the Nasdaq 100 Friday. Others included Cerner (CERN), Nvidia (NVDA), Broadcom (AVGO) and Netflix (NFLX).

The S&P 500 lost 1.7%. The Dow Jones industrial average gave back 1.2%. Preliminary data showed volume on the NYSE and Nasdaq coming in higher than Thursday’s levels.

Alphabet fell 1.8%. The megacap beat the Street’s consensus earnings estimate by about 14%. Revenue came in 0.9% lighter than expected.

Amazon, meanwhile, slumped nearly 8%. It ended the week below its 200-day moving average after the company reported disappointing sales growth and also gave sluggish sales guidance for the holiday quarter.

Homebuilders outperformed, while data storage firms lagged, hurt by weak earnings from Western Digital (WDC).

The major stock indexes rallied sharply Thursday, but in the end, it was just the first day of a rally attempt. The rally is dead in the water already because the S&P 500 and Nasdaq undercut Wednesday’s intraday lows. That means it’s time to look for the first day of another rally attempt.

A follow-through day is possible in the near-term, and it would serve as confirmation of a new uptrend. If it happens though, don’t jump back into the stocks market with reckless abandon. A lot of technical damage has been done that will likely take more time to repair.

Stock News Today

In the auto parts replacement group, Standard Motor Products (SMP) and Dorman Products (DORM) soared 14% and 8%, respectively, after reporting earnings.

Meanwhile, stocks soaring and reclaiming their 50-day moving averages have been few are far between, but National Instrument (NATI) passed muster Friday. Shares soared 17% to 50.11, ending just above a 49.45 proper entry point. A solid earnings report was the catalyst.

Leaderboard name Ulta Beauty (ULTA) was a bright spot, up 1%. The retail sector was featured in today’s Industry Themes column.

In the semiconductor sector, Mellanox Technologies (MLNX) also made a bullish above its 50-day line, soaring 14.5% on takeover chatter.

Also in stock news today, Brazilian based miner Vale SA (VALE) outperformed, rising just over 2% to 15.07. The liquid, large-cap name is holding above its 50-day moving average is it trades near a 15.34 entry.

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