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Dow Leads In Tight Finish; Video Gamers Clear Buy Points | Stock News & Stock Market Analysis

Stock fought to a positive finish on Wednesday, as health care and construction stocks booked some of the day’s widest losses, while video-game stocks notched a bevy of breakouts.

X The Dow Jones industrial average led, ending up 0.3%, boosted by Boeing’s (BA) monster 5% advance, on the heels of its glowing Q4 results. The Nasdaq Composite rose 0.1%, while the S&P 500 struggled to a fractional gain.

Markets dropped sharply after the Fed’s 2 p.m. ET announcement. The committee held its target interest rate unchanged, but offered a slightly more wary tone on inflation. The day’s other economic news was positive, with early data from ADP showing January hiring slipped less than expected, while December pending home sales and a Chicago-region manufacturing for January gauge easily topped expectations.

The Dow was held back some by medical components Merck (MRK), Johnson & Johnson (JNJ) and Pfizer (PFE), which all dropped more than 2%. Drugmaker Eli Lilly (LLY) tumbled 5%, following a generally positive fourth-quarter report. But drug sector investors were apparently still reacting to Tuesday’s news of an innovative health care partnership between Amazon.com (AMZN), Berkshire Hathaway (BRKA) and JPMorgan (JPM).

Amazon advanced 1.5%, putting it 20% past its 1213.10 buy point and in a profit-taking zone. The other three FANG stock tech leaders lost ground. Netflix (NFLX) fell furthest, down nearly 3%, but still extended after its early January breakout.

Tesla (TSLA) rose 2.5% in average trade, for its third gain in four sessions. Shares are now up more than 20% from their November low and back above support at their 10- and 40-week moving averages, climbing the right side of a possible four-month base pattern.

The video game trade was among the day’s winners, with Ninetendo (NTDOY), Take-Two Interactive (TTWO) and Electronic Arts (EA) all clearing buy points or adding to entries. Ninetendo trimmed gains in afternoon trade, but remained just beyond buy range above a cup-base buy point at 54.06. Electronic Arts pared its advance and held in its buy range, after topping a 122.89 buy point, also from a cup base.

Take-Two chalked up a 7% surge to end at the very top of a buy range above a 120.72 cup base buy point.

Concrete and aggregates suppliers took the session’s worst performance among industries, with U.S. Concrete (USCR) tumbling more than 6%, Eagle Materials (EXP) down 5% and Martin Marietta (MLM) and Vulcan Materials (VMC) falling 3% apiece. Eagle materials posted a mixed fourth quarter report before the open, but the reaction could also have been linked to public-private infrastructure cost-sharing questions raised in President Trump’s State Of The Union address.

Among IBD 50 names, telecom software developer Casa Systems (CASA) gained more than 6% in soft trade. The stock is attempting to start of the right side of its first base, ending about 10% below its Jan. 16 high and 46% above its December IPO price.

Argentina-based bank Grupo Servielle (SUPV), also an IBD 50 name, jumped almost 5% in nearly average trade. The move technically placed the stock in a buy range on a rebound from support at its 10-week moving average. But volume would need to kick in over the next day or so in order to confirm the buying opportunity.

At the bottom of the IBD 50 list, MiMedx Group (MDXG) and Daqo New Energy (DQ) each shed about 5%.

Other Important Market News For Wednesday:

Bring Your Game As Apple, Amazon, Alphabet Report: Action Plan

Biggest U.S. Homebuilder Hits Resistance, Despite 40% Earnings Gain

How To Sell: Don’t Freeze If Double-Digit Gain In A Stock Shrinks Fast

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