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Stock Indexes Fall; Amazon Higher And Other Stock Market News April 19, 2018

The stock market was squarely lower in morning trade Thursday. But FANG leader Amazon.com (AMZN) continued its hot streak with another solid advance in the stock market today. Meanwhile, W.W. Grainger (GWW) was in buy range after a strong breakout.

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The tech-heavy Nasdaq and the S&P 500 fell 0.5% apiece, while the Dow Jones industrial average was down 0.3%.

Among companies reporting earnings, W.W. Grainger jumped about 6% after reporting strong Q1 results early Thursday. The industrial supplier also raised its full-year guidance. Shares are regaining their 292.57 cup-with-handle entry in strong volume and are in buy range. The 5% buy range tops out at 307.20.

An April 5 breakout sputtered after rival Fastenal (FAST) disappointed investors last week, but never triggered the 7% to 8% sell signal. Still, it’s always riskier to hold a loss through an earnings release.

Taiwan Semiconductor (TSM) faltered about 6% after reporting weaker-than-expected earnings results. Taiwan Semi is a major chipmaker and partner of both Apple (AAPL) and Nvidia (NVDA). Morgan Stanley said that smartphone weakness is the main reason for the revenue shortfall.

Dow name Apple dropped fell about 2%, but remains above its 50-day line. The stock is drawing a flat base with a 183.60 potential buy point. Meanwhile, IBD 50 name and graphics-chip maker Nvidia declined 2%. Shares are being turned away from the 50-day moving average line, which has become a potential resistance level.

FANG stock Amazon.com rose more than 2% after the CEO Jeff Bezos said the company had exceeded 100 million paid Prime members globally in his annual letter to shareholders. The Leaderboard name extended its win streak to four trading sessions, which has brought the stock back above its 50-day line. The e-commerce giant is shaping the right side of a potential base.

Inside The IBD 50

Among leading growth stocks, Align Technology (ALGN) dropped 7% after Morgan Stanley downgraded the stock from overweight to equal weight. Align Technology broke out Wednesday above a cup with handle’s 277.42 entry, but turnover was soft. The cup with handle was also a later-stage base, which is more prone to failure than earlier-stage formations. The stock triggered the 7% to 8% sell signal to cut losses when a breakout clearly isn’t working out.

Meanwhile, new additions to the IBD 50 — Alibaba (BABA) and Wingstop (WING) — declined about 0.7% each. The Chinese e-commerce name is finding resistance at its 50-day line amid a 20% correction from its Jan. 31 peak.

SwingTrader name Wingstop is still holding just off its all-time highs after finding strong support at its 50-day line earlier this month.

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