Tech Stocks Recover, But Facebook, Nvidia Sit Rally Out

It was another volatile session for the stock market Friday as earnings from Nvidia (NVDA) and Applied Materials (AMAT) cast a pall on tech stocks early. But after falling 1.2% intraday, the Nasdaq composite was only down 0.1% in late trading. Improving sentiment was fueled by positive comments from President Donald Trump about China trade talks.


With about one hour left to go in the session, the Dow Jones industrial average led the way, up 0.5%. The S&P 500 added 0.3% and the Russell 2000 small-cap index eased 0.1%.

Top gainers in the Dow included UnitedHealth (UNH), Travelers (TRV), 3M (MMM) and Leaderboard name McDonald’s (MCD). Gains ranged from 2% to 2.5%.

In the stock market today, the Philadelphia Semiconductor index pared losses but still lost 1.1%. Shares of Nvidia plunged 19% after the company reported earnings and issued sales guidance well below expectations. Chip-equipment firm Applied Materials cratered more than 8% early, also on weak sales guidance, but the stock reversed higher. Shares were up 0.5%.

Tech Stocks: Facebook Knocked Lower

Shares of Facebook (FB) lagged, down 3%. The stock is still facing fallout from a New York Times story Wednesday that raised more questions about how the company handled the Russian interference scandal in 2016. The story also said Facebook hired a public relations firm to dig up dirt on competitors.

Tech stocks in the IBD 50 also lost ground, including Square (SQ), down 4%. To its credit, Square is holding above its 200-day moving average as it consolidates gains.

BioTelemetry (BEAT), featured in today’s Sector Leaders story, was a top gainer in the IBD 50. Shares were up 2% after a nice bounce off the 50-day moving average Thursday.

Retail Weakness

Disappointing earnings in the retail sector from Nordstrom (JWN) and Williams-Sonoma (WSM) also weighed on sentiment early. Shares of Nordstrom fell 14% over concerns about slowing traffic at its full-price stores. Williams-Sonoma lost 12% on disappointing sales and soft holiday guidance.


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Originally posted 2019-09-19 23:25:36.


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