Amazon Holds Up As Nasdaq Dips; United Airlines Soars On Earnings
Tech stocks were under mild selling pressure near midday Wednesday, but shares of Amazon.com (AMZN) held up after the Nasdaq 100 giant called its recent Prime Day the most successful ever.
Leaderboard name Amazon lost 0.7% early but recovered off lows after Tuesday’s positive reversal that resulted in a new closing high. Amazon has been a pillar of strength after gapping out of a cup-with-handle base in late April on strong earnings. Earnings from Amazon are due July 26 after the close.
Among FANG stocks, Amazon and Google parent Alphabet (GOOGL) held up the best. Alphabet was unfazed by news of a $ 5 billion fine from the European Union related to the dominance of Google’s Android mobile operating system.
The Nasdaq composite was mostly flat, while the Dow Jones industrial average and S&P 500 rose a bit. Volume on the NYSE and Nasdaq was tracking slightly higher than Tuesday’s pace.
The Dow was led by UnitedHealth Group (UNH). Shares rose more than 2% after the stock paid a visit to its 50-day moving average Tuesday. The health insurer is back in buy range from a conventional entry of 250.89.
Wednesday’s session yielded three bullish gaps up in price, all on strong earnings.
In stock market results today, railroad CSX (CSX) jumped more than 5% to 67.96 as it tries to clear a flat base with a 67.79 buy point. CSX reported its third straight quarter of accelerating earnings growth and second quarter in a row of accelerating sales.
Shares of chip-equipment firm ASML (ASML) gapped up powerfully. Shares were up 6% as it tried to clear a recent high of 216.90. An earnings beat and news of a 33% increase in sales to $ 3.2 billion fueled positive sentiment. Sales growth at the Netherlands-based company has ranged from 33% to 53% over the past four quarters.
In the airline group, United Airlines (UAL) gapped up past a 75.63 entry, rising 8.5% to 78.82. Earnings and sales beat estimates and the company also raised its full-year earnings guidance.
Inside the IBD 50, China-based TAL Education (TAL) gapped above its 50-day moving average, rising 5%. Earnings are due July 26 before the open.
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