FAANG Stocks Help Nasdaq Lead Morning Rally As Netflix Makes Bullish Move

FAANG stocks all rallied sharply after the stock market open on Thursday with a majority of the five big-cap techs showing gains of 1% or more as Wall Street continued to respond positively to earnings growth in the internet, leisure and consumer spending sectors.


Alphabet (GOOGL) was up the least among the five, just 0.4%. Netflix (NFLX) powered up more than 2% and is trying to snap a six-session losing streak as shares are finding bullish support near its fast-rising 50-day moving average.


You can read the latest key news on the FAANG companies by going to “News” on the Investors.com homepage, then clicking on “FANG Stock News.” Also, you can type in “Apple” in the search box on the home page.

In IBD Stock Checkup, Alphabet scores just an 83 Composite Rating on a scale of 1 to 99, with 99 the best possible. The Google search engine owner has become a laggard with a small loss since Jan. 1. Earlier this week, Alphabet posted a 28% rise in first-quarter earnings to $9.93 a share, matching the 28% increase in Q4.

Alphabet is holding its own around the 200-day moving average, but is around 13% below its all-time peak of 1,197. Watch to see if the stock can muscle back above the medium-term 50-day line; that would signify renewed strong institutional demand.

Netflix, which is trading just 7% off its 338.82 high, holds a top-notch 99 Composite rank. The Street sees the video streaming giant’s earnings bolting 129% higher this year to $2.86 a share.

Netflix has 435 million shares outstanding, while Alphabet has a total 695 million shares across all of its share classes.

QQQ Jumps Sharply

The Nasdaq composite gained more than 1.2%, while the Nasdaq 100-tracking PowerShares QQQ Trust (QQQ) advanced 1.5%. At 161.09, QQQ is up 3.4% since Jan. 1.

At 7082, the Nasdaq composite is now up 2.6% year to date.

The S&P 500 and the Dow Jones industrials lagged but still rose more than 0.5%.

The Innovator IBD 50 (FFTY) ETF, up 34% in 2017, jumped 1.5% to 32.75 following support at the 200-day moving average. The exchange-traded fund is still down modestly in 2018.

Watch The Restaurant Names

Chipotle Mexican Grill (CMG) and Domino’s Pizza (DPZ) gapped up on better than expected results. The former is building a new first-stage base. Chipotle, which recently hired a new CEO, notched a 33% pickup in adjusted Q1 earnings to $2.13 a share as sales edged 7% higher.


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Originally posted 2019-09-19 23:13:28.


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