Stocks Weaken Early; Leading Chipmaker Hits Record High
The major market indexes were on pace to decline for a second straight day, trading mildly lower early Friday. The S&P 500 and Dow Jones industrial average fell 0.2% apiece. The tech-heavy Nasdaq also edged 0.2% lower.
XAutoplay: On | Off Among the Dow Jones industrial components, Walt Disney (DIS) advanced over 2% early Friday. The company posted poor profit and revenue results late Thursday, but announced the launch of a brand new “Star Wars” trilogy, while saying its Disney-only streaming platform would be priced “substantially below” Netflix (NFLX). The stock is attempting to get back above its 200-day line, but appears to be having some trouble.
Meanwhile, shares of FANG stock Netflix traded about 1.5% lower, and remain in buy range from a 190.05 cup-with-handle entry. The stock is testing its 50-day line.
On the downside, McDonald’s (MCD) was on pace to fall for a third consecutive day, dropping nearly 2%. Shares are back in buy range from a 160.08 flat-base buy point.
Among companies reporting earnings in the stock market today, leading chip stock and IBD 50 member Nvidia (NVDA) posted better-than-expected earnings and sales results late Thursday. Shares jumped 4% to a new high. The stock recently reached the 20%-25% profit-taking range.
Retailers J.C. Penney (JCP) and Nordstrom (JWN) were mixed after positive earnings results. J.C. Penney easily topped Q3 estimates, sparking a 17% advance in shares for the troubled retailer. The stock is still about 70% off its 52-week high.
In the meantime, Nordstrom beat top- and bottom-line estimates in a report after Thursday’s close, but same-stores sales were worse than the Street’s targets. Shares fell over 1%, and remain well-below their 50- and 200- day lines.
Within the IBD 50, chip-gear supplier Ichor Holdings (ICHR) fell over 1% after reporting light Q3 revenues. Shares are approaching their 50-day line, about 16% above a 25.41 entry.
Elsewhere among the leading growth stocks, Alibaba (BABA) moved up 0.4% to rise towards the top of its 5% buy range from a 177.10 ascending-base pattern entry.
On the downside, Trade Desk (TTD) plunged 12% after reporting light sales guidance in the current quarter. The digital ad placement firm fell further under its 50-day line, triggering the 7%-8% sell signal from a 57.97 buy point.
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