Nasdaq Rally Had This Flaw; China Names Stay In Focus

The stock market ended the week on a positive note, but all in all, the week belonged to the bears as distribution days piled up in the Nasdaq composite.

The Nasdaq gained 0.6% but ended the week below its 50-day moving average. For the week,  it lost around 1.5%. The S&P 500 rose 0.1% and the Dow Jones industrial average also picked up 0.1%. The Russell 2000 added 0.1% also. It’s now testing longer-term support at the 200-day moving. Preliminary data showed volume on the Nasdaq coming in below Thursday’s level and NYSE volume ending close to Thursday’s total.

In the stock market today, Netflix (NFLX) ended a three-session slide, rising just over 1%. Wall Street was encouraged by news the company is in talks to retain Disney‘s (DIS) Star Wars and Marvel movies on the platform. After reporting earnings Wednesday, Disney said it planned to pull all of its content from Netflix as it plans to launch a streaming service of its own in 2019.

China names Weibo (WB), Sina (SINA) and Baidu (BIDU) ended higher, unfazed by news that Chinese regulators are investigating the three for possible content law violations. Tencent (TCEHY), which reports earnings next week, was also named. Shares fell 1.5%.

Several growth names outperformed in the IBD 50, including Veeva Systems (VEEV). Shares gained 3% to 61.85. The leading cloud software firm has been getting support near 60 as it works on a cup-with-handle base with a 66.19 buy point. Separately, fellow enterprise software name Paylocity (PCTY) added nearly 4%. Shares were volatile after reporting earnings. It’s getting some resistance at the 50-day moving average as it sits about 9% off its recent high.

Shares of Leaderboard name Trade Desk (TTD) jumped 9% to 54.45 after the company reported another quarter of big earnings and sales growth. Trade Desk offers a cloud-based platform where customers can create and manage their own digital advertising campaigns. Trade Desk went public almost a year ago at 18 a share.

China-based Autohome (ATHM) continued its torrid ascent, rising another 9%. The company on Wednesday gapped up and rose 9% after reporting another solid quarter. Shares surged about 29% for the week.

On the downside, Nvidia (NVDA) slumped 5% to 155.96. The company delivered another solid quarter, but strong sales at its data-center business slightly missed expectations.

In IPO news, it was an inauspicious debut for YogaWorks (trading under the symbol YOGA). Shares crashed 12% to 4.85 after pricing last night at 5.50, at the low end of a downwardly revised range of 5.50 to 6.50. Earlier, YogaWorks had planned to raise $ 65 million by offering 5 million shares at 12-14, according to Renaissance Capital.


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