Advertisements

Follow us on facebook


Blue Chips Pace Gains, But Apple Gives Up 50-Day Moving Average | Stock News & Stock Market Analysis

Thursday’s session was volatile early after major stock indexes opened nicely higher amid more weakness in the U.S. dollar and a three-year high for the euro. But the dollar moved off lows and the euro weakened after European Central Bank President Mario Draghi hinted that 2018 could come and go with no rate hikes despite improving economic conditions in the eurozone.

X In late-afternoon trading, the Dow Jones industrial average led the way, rising 0.3%. Dow Jones industrial component 3M (MMM) was a top gainer in the blue-chip index, up around 2%, after the company reported accelerating earnings and sales growth and also increased its dividend to $1.36 a share. That gives it an annualized yield of around 2.1%. Boeing (BA) also delivered a solid gain, up around 2%.

The Nasdaq composite eased less than 0.2% as semiconductor stocks lagged. The S&P 500 gave back 0.1%. Volume on the NYSE and Nasdaq was tracking lower than Wednesday’s levels in the stock market today.

Some of the worst performers in the Nasdaq 100 hailed from the chip sector with names like Broadcom (AVGO), Lam Research (LRCX), Xilinx (XLNX) showing losses ranging from 3% to 4%.

Netflix (NFLX) and Biogen (BIIB) outperformed in the Nasdaq 100 with gains of around 2% to 3%.

Airlines were also hard hit amid earnings from American Airlines (AAL) and Southwest (LUV). Shares of American slumped nearly 3% after gapping down 6% Wednesday.  Southwest dropped nearly 4%, giving up support at the 50-day moving average after posting modest fourth-quarter growth.

Varian Medical Systems (VAR) was a standout performer on strong earnings, soaring 11% to 125.03. The stock gapped out of a flat base with a 114.19 entry, meaning the open price at 123 was a legitimate entry.

After Wednesday’s distribution day for the Nasdaq, some leading growth stocks are starting to show chinks in their armor.

Elsewhere, buyers of Universal Display (OLED) at the last breakout over 145.40 have reason to take at least partial profits after three straight declines in heavy volume, and another one taking shape Thursday. Universal Display breached the 50-day moving average Wednesday. Shares were down another 6% to 168.43.

Coherent (COHR) has also stumbled in recent days as it trades below the 50-day moving average. Shares in the former member of the IBD 50 reversed lower Thursday, dropping 3% to 274.77.

After falling 1.6% in heavy volume Wednesday, Apple (AAPL) extended losses and gave up support at the 50-day moving average, falling 1.5%. It’s also given up a 176.34 buy point. Earnings are due Feb. 1 after the close.

Also inside the IBD 50, RV makers Winnebago Industries (WGO) and Thor Industries (THO) lagged with losses of around 5% to 6%.

RELATED:

Homebuilder Stocks Fall On Lennar Mortgage Probe, NVR Earnings, New-Home Sales

Amazon Price Target Raised On Expectations Of Strong Results

Best Stocks To Buy And Watch

Source link

Advertisements

No comments.

Leave a Reply