Job Gains Spark Stock Market Rally; Lululemon Surges To Highs

The stock market looked to close out the week with a strong gain Friday. The Labor Department said the U.S. economy added 223,000 jobs in June — better than the 190,000 consensus estimate. Meanwhile, the jobless rate fell to 3.8%. Top retail stock Lululemon (LULU) surged to new highs after its strong earnings release late Thursday. (For updates on this story and other market coverage, visit stock news today)


All three major indexes — the Dow Jones industrial average, the S&P 500 and tech-heavy Nasdaq advanced about 0.8%.

Among companies reporting earnings, yogawear retailer and Leaderboard member Lululemon’s beat-and-raise quarter sent the stock up about 14% early Friday. The stock has made big gains since the company reported strong earnings results on March 27 and put the stock extended from a previous buy area around the 50-day line.

Fellow retail name Abercrombie & Fitch (ANF) topped Q1 estimates, as the stock continued its recent slide below the 50-day moving average line. Shares plunged 8% and are about 25% off high.

VMware (VMW) is breaking out above a cup with handle’s 145.25 entry early Friday. Shares rose almost 8% after the company beat the Street’s Q1 targets.

Top software stock Workday (WDAY) triggered the 7%-8% loss-cutting sell signal from a double bottom’s 133.66 entry, as the stock declined over 5%. Late Thursday, the maker of human capital management and financial software reported better-than-expected Q1 earnings and sales. Its full-year fiscal 2019 subscription revenue was guided in line with analyst targets.

Among the FANG stocks, Facebook (FB) rose 0.5% and is approaching a fresh high. Shares are in the 5% buy range from a 188.42 buy point that tops out at 197.84.

Inside The IBD 50

Among the top growth stocks, Grubhub (GRUB) advanced more than 1%, as the stock continues to trade within the 5% buy range above a 105.78 double-bottom entry. The base is a later-stage formation.

Alibaba (BABA) rose more than 1% and is once again approaching a double bottom’s 201.60 entry. Shares topped that level on Tuesday, but closed below the buy point. Resistance around the $200 price level has been stout.

Meanwhile, Five Below (FIVE) moved up almost 1%, as the stock continues to shape a flat base with a 78.38 buy point. The stock’s relative strength line has dipped since mid-April, showing significant market underperformance.


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Originally posted 2019-09-19 23:15:32.


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