Stock Market News: Huge Rally In Chip Stocks Not Much Help To Nasdaq

Major stock indexes pared losses but still traded slightly lower in afternoon trading Wednesday. In stock market news, the Philadelphia Semiconductor Index surged 3%, helped by strong showings from Skyworks (SWKS), IBD 50 stock Microchip (MCHP) and Micron Technology (MU). But the Nasdaq couldn’t get anything going, partly because of weak showings from video game makers Electronic Arts (EA), Take-Two Interactive (TTWO) and Activision Blizzard (ATVI).


Wall Street didn’t like the look of earnings reports from Electronic Arts and Take-Two. Shares of Electronic Arts plunged more than 13%, while Take-Two cratered nearly 13%. Results from Activision Blizzard are due Feb. 12 after the close.

The Nasdaq composite was down 0.3%; the S&P 500 eased 0.2% and the Dow Jones Industrial Average was mostly flat.

The Nasdaq is just below its 200-day moving average, a potential resistance level to watch. The S&P 500 finds itself in a similar situation.

Stock Market News: Software Earnings

Paycom Software (PAYC) gapped up out of a later-stage base on strong earnings, rising 9%. So did group peer Zendesk (ZEN), which shot up 5%. Both stocks were the top two gainers in the MarketSmith Growth 250.

But the news wasn’t so good at Tableau Software (DATA). It was holding just above a 131.92 buy point ahead of earnings, but the stock gapped down to its 50-day moving average. Shares were down nearly 7% to 124.18.

In other stock market news today, Leaderboard stock Vertex Pharmaceuticals (VRTX) reversed lower despite a big earnings and sales beat, helped by continued strong sales of its cystic fibrosis treatments.

Elsewhere, shares of New York Times (NYT) surged 12.5% to 30.28 after the company reported better-than-expected earnings before the open. It’s still in buy range from a 28.82 entry.

Stock Market News: Xilinx Leads IBD 50

Inside the IBD 50, Xilinx (XLNX) was a top gainer. The chip designer continues to show relative strength after gapping out of a consolidation Jan. 24.

After the close, watch for earnings reports from top-rated growth stocks like Chipotle Mexican Grill (CMG) and Match Group (MTCH). Chipotle is trading tightly near highs. But shares of Match Group were down 5% in afternoon trading.


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Originally posted 2019-09-19 23:32:55.


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