Nasdaq Outperforms As Shines, Facebook Lags | Stock News & Stock Market Analysis

The Dow Jones industrial average, S&P 500 and Nasdaq composite managed decent gains by the close Tuesday in a session short on volatility as indexes kept to a relatively tight intraday range.

X FANG names were generally sluggish, but (AMZN) outperformed again, rising 2%. It’s performed well after paying a visit to the 50-day moving average Friday. Facebook (FB) lost more than 1.8% after finding support at the 200-day moving average Friday.

The Nasdaq notched its third straight gain, rising nearly 0.5%. It’s getting closer to the 50-day moving average near 7,081, a potential resistance level to watch. The S&P 500 added 0.3% and the Dow gained 0.2%. Preliminary data showed volume on both exchanges coming in lower than Monday’s levels.

At the New York Mercantile Exchange, March U.S. crude oil futures eased 0.2% to $59.19 a barrel after the International Energy Agency raised its global demand growth outlook. The 10-year Treasury yield, meanwhile, eased 3 basis points to 2.82%.

In the stock market t0day, AmerisourceBergen (ABC) jumped 9.3% after a report in the Wall Street Journal said Walgreens Boots Alliance (WBA) is interested in buying the drug distributor. The news comes on the heels of the proposed merger between CVS Health (CVS) and Aetna (AET) announced late last year.

Inside the IBD 50, Weibo (WB) was the star of the day, soaring 9.7% on strong earnings. It was a muscular move, but Weibo recently flashed a sell signal from a handle entry at 122.31 as well as an alternate entry at 123.10. Note that its latest breakout was from a later-stage base. The company operates a social-media platform in China.

Sina (SINA), which spun off Weibo in 2014 but remains a majority shareholder, jumped 6%, also on solid earnings.

Elsewhere, after a failed breakout over a 52.97 cup-with-handle buy point, IBD 50 name HealthEquity (HQY) is still in buy range from a new handle entry at 52.53. Note that HealthEquity still has its recent high to contend with at 55.31.

RingCentral (RNG) turned out to be a good earnings option play as shares jumped 7%. Late Monday, the enterprise software name reported another quarter of triple-digit earnings growth, along with a 34% increase in sales to $140.5 million.

When shares were trading around 53.25 on Monday, a monthly call option with a 55 strike price (Feb. 16 expiration) came with a premium of around 1.40, presenting a trade with downside risk of 2.6% (1.40/53.25). One contract gave the holder the right, but not the obligation, to buy 100 shares of RingCentral at 55 for a cost of around $140. If the company’s earnings had disappointed, the most that could’ve been lost on a one-contract trade was $140, the amount paid for the contract.


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Originally posted 2018-02-13 22:06:52.


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