Indexes Pare Losses After Soft Start; Workday Jumps, Delta Rises Pre-Earnings | Stock News & Stock Market Analysis

Major stock indexes were spooked in the early going Wednesday on news China thinks U.S. debt is less attractive than other asset classes at the moment. That fueled speculation that the world’s second-largest economy could start to slow down bond purchases.

But the Nasdaq composite recovered, down 0.3% in late afternoon trading, after a 0.7% intraday drop. The S&P 500 gave back 0.2% and the Dow Jones industrial average eased 0.1%. Volume on the NYSE and Nasdaq was tracking close to Tuesday’s levels in the stock market today.

After jumping 7 basis points Tuesday to 2.55%, the 10-year Treasury yield got close to 2.60% Wednesday but was back near 2.55% in late trading.

Financials led the IBD 50 higher as Essent Group (ESNT), Leaderboard name SVB Financial (SIVB) and Grupo Supervielle (SUPV) showed gains of around 2%.

Department store operators were among the top performers. Airlines also did well.

Delta Air Lines (DAL) jumped 2.5% to 55.50 ahead of its earnings report Thursday before the open. A recent breakout over a 54.16 buy point didn’t make much headway, but Delta continues to hold comfortably above the entry.

In earnings news, Lennar (LEN) reversed higher after an inauspicious start , rising 2% to 68.18. An earnings miss made early headlines, causing shares to drop 1.4% intraday, but Wall Street changed its tune, perhaps focusing on a nice sales beat instead. In late October, Lennar announced plans to acquire CalAtlantic (CAA) for just over $9 billion.

Meanwhile, enterprise software name Workday (WDAY) surged 3% to 113.40, helped by positive comments from Morgan Stanley. On a daily chart, some might interpret Workday’s latest pattern as a cup-with-handle, but that’s not the case because the handle is too short. Still, Workday’s price action is bullish as it cleared the 110 level.

Elsewhere, Intuitive Surgical (ISRG) gapped out of a cup-shaped base with a 405.15 buy point, rising nearly 7% to 423.97, after the company announced bullish Q4 preliminary results. It now sees sales of $892 million, well above the consensus estimate of $845 million.

No doubt growth investors are seeing plenty of bullish chart patterns out there, but it’s important to recognize if the stock is still in the early stages of a run or the later stages. Breakouts from late-stage bases can work but are generally more prone to fail. Some examples of later-stage bases out there now include TAL Education (TAL), Arista Networks (ANET) and Nvidia (NVDA).

U.S. crude oil futures settled at $63.57 a barrel, up 1%, after weekly U.S. inventory data showed a larger-than-expected decline in stockpiles.


Here’s What Berkshire’s Warren Buffett Thinks About Cryptocurrencies

Oil Prices Stay Up As U.S. Crude Production, Inventories Drop

Robot Surgeon Breaks Out; Two Top Financials Hit New Highs

Source link

Originally posted 2018-01-15 02:03:49.


No comments.

Leave a Reply

error: Content is protected !!