Nasdaq Resilient Despite Tariff Concerns As 3 Retailers Are On The Move | Stock News & Stock Market Analysis

The stock market was spooked early Friday as steel and aluminum tariffs proposed by President Trump fueled more market uncertainty, but major stock indexes recovered nicely in afternoon trading, with tech stocks leading the way.


After falling 1.6% intraday, the Dow Jones industrial average was down 0.7%. Even when the blue-chip index was down hard early, hurt in part by weakness in names like McDonald’s (MCD) and Boeing (BA), selling was muted in the Nasdaq composite and S&P 500.

The Nasdaq turned higher, up 0.5%, as it tries to reclaim the 50-day moving average. The S&P 500 was down a fraction. The benchmark index is still firmly below the 50-day moving average.

McDonald’s slumped 5% after RBC Capital lowered its price target to 170 from 190 due to lukewarm reception so far for the company’s new $1-$2-$3 Dollar Menu launched in January.

Boeing, meanwhile, was one of several industrial names in the Dow pressured because higher tariffs usually result in higher input costs. Shares gave back nearly 2%.

To be sure, Friday’s performance was good to see in light of three straight distribution days for the Nasdaq and S&P 500, although overall market health is still in question due to signs of institutional selling in the indexes.

In the stock market today, Microchip (MCHP) jumped more than 2% on news it’s buying Microsemi (MSCC) in a deal valued at more than $10 billion. The deal will give Microchip a stronger presence in the aerospace and defense market. Shares of Microsemi gained nearly 5%.

Elsewhere, Micron Technology (MU) looked poised for its third straight weekly gain. Shares rose 2.5% to 48.83. Micron is in buy range from a double-bottom entry at 47.08.

In earnings news, Splunk (SPLK) soared 8% to 100.98 on strong results, but it was quite extended from an 84.98 buy point ahead of the results.

IBD’s TAKE: A 7% rise in heavy volume for Splunk is a sign of institutional buying, one of the main driver’s of a stock’s price. To see other stocks under accumulation on a daily basis, check Stocks On The Move  on the home page of

A nice earnings report also fueled a 6% rise for Gap (GPS). Sales at its flagship Gap stores and Banana Republic locations were mostly sluggish but same-stores at Old Navy jumped 9%.

Inside the IBD 50, retailer Five Below (FIVE) cleared a cup-with-handle base with a 68.48 buy point in light volume. Shares were up 2% to 68.54

Meanwhile, Nordstrom (JWN) reversed higher after Wall Street showed initial concern about an earnings miss, but the focus seemed to shift to robust holiday sales. Shares were up nearly 6% to 52.93.


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Originally posted 2019-09-19 23:10:20.


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