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Blue Chips P&G, AmEx Soar On Strong Q3 Earnings

Blue chips were among the best performers Friday as major stock indexes tried to rebound after Thursday’s sell-off. Procter & Gamble (PG) and American Express (AXP) raced ahead in the Dow, while PayPal (PYPL) was a top gainer in the Nasdaq 100.




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Major averages started off on solid ground Friday but gains faded badly. After rising 1.3% intraday, the Nasdaq composite was up 0.1%; the S&P 500 added 0.4% and the Dow Jones industrial average gained 0.5%. Volume on the NYSE was tracking about 20% higher than Thursday. Nasdaq volume was tracking close to Thursday’s level.

Strength in beauty sales fueled a strong quarter for Procter & Gamble. Shares soared nearly 8%, good for a breakout over a trend line. AmEx was another top performer, rising 3.5% on strong earnings. Strong consumer spending and small business spending fueled another quarter of double-digit revenue growth.

PayPal gapped above its 2oo-day moving average on solid Q3 results, but is 50-day line is a potential resistance level to watch. Shares were up 8.5% in afternoon trading but well off sessions highs. While PayPal led the Nasdaq 100, but the real story in the index was the number of former market leaders that remained under selling pressure. Nvidia (NVDA), Align Technology (ALGN), Activision Blizzard (ATVI) and Intuitive Surgical (ISRG) showed losses of 2% or more.

Other Blue Chips On The Move

Inside the IBD 50 index of top growth stocks, Apple (AAPL) was a solid gainer, up 1.5%. The leading FAANG stock benefited from positive comments from Wedbush Securities, which initiated coverage with an outperform rating and added the stock to its “Best Ideas List.”

Walt Disney (DIS) was another top stock in the Dow, up nearly 2%. Disney last week fell 6.5% below a 118 buy point, but after hitting a low of 110.32 on Oct. 11, Disney reclaimed the buy point Friday. Technically, it’s in a buy zone, but new buys are risky with the market still in a correction.

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