Stocks Defend Modest Gains As Chevron, Walmart Divide Dow

Markets stepped up to a solid start Wednesday, with Chevron (CVX) and Walmart (WMT) taking up positions at opposing ends of the Dow and as earnings news drove some dramatic early moves.


The Dow Jones industrial average climbed 0.2%, battling stiff resistance from Walmart’s early 3.7% dive. The S&P 500 swung up 0.4%. The Nasdaq followed close behind with a 0.3% advance.

Rising crude oil prices helped send Chevron and Exxon Mobil (XOM) to the top of the Dow, up 2.7% and 2% respectively. The early gains lifted both the Dow and the S&P 500 back above their 50-day moving averages.

Chevron Breaks Out; Walmart Chases Amazon in India

Energy issues were front and center in early trade, as crude oil prices popped 2.4%, taking back the ground lost Tuesday. Oil prices turned volatile on news that the U.S. had exited the Iran nuclear deal. Energy names posted eight of the 10 top early gains among S&P 500 stocks.

Near the top of that list, Occidental Petroleum (OXY) popped more than 4%, effectively marking a breakout above a 78.19 buy point in a cup base. Occidental reported a Q1 earnings gain of more than 500%, with revenue rising 28%. Both were well above expectations. The stock rose narrowly above the buy point, in moderate trade Tuesday.

On the Dow, Chevron’s heavy-volume gain sent shares into a buy range above a 128 buy point in a five-month cup-with-handle base.

Walmart exerted a powerful influence, falling hard after announcing it would pay $16 billion to acquire a 77% stake in India’s largest e-commerce name Flipkart. The move pits Walmart, once again, with (AMZN) in a country where 35% of its 1.3 billion citizens use the internet. The loss ended Walmart’s effort to retake support at its 50-day moving average, sending the stock to its lowest level since October.

IBD Leaderboard name Planet Fitness (PLNT) pared an early 5.7% decline to less than 5%. A 42% EPS gain and a 33% jump in Q1 revenue beat analyst expectations. The stock tumbled below its 10-week moving average in heave trade, which can be a sell sign. The pullback had stopped 6% below a 40.14 buy point from a flat base. That is short of the 7% to 8% pullback that would trigger the automatic sell rule.



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Originally posted 2019-09-19 23:14:09.


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