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Dow Leads Quiet Session, But IBD 50 Names Shine Brightly Again | Stock News & Stock Market Analysis

Blue-chip stocks were in the driver’s seat in afternoon trading Monday as a shortened week of trading kicked off with modest gains.

XAutoplay: On | OffThe Dow Jones industrial average was up 0.4%, as seven names in the blue-chip index rose 1% or more. The Nasdaq composite and S&P 500 edged higher by around 0.1%, but the  IBD 50 looked poised for another strong close, with more than 20 names up 1% or more.

Volume on the NYSE and Nasdaq was tracking below Friday’s levels in the stock market today.

Dow component Wal-Mart (WMT) held up pretty well despite a downgrade to neutral from buy at Goldman Sachs, citing valuation. Shares lost 1% to 96.32 but no technical damage was done as Wal-Mart holds nicely above an 82.09 buy point. Shares gapped up Thursday after the company reported earnings and gave a solid holiday 0utlook.

Among the day’s movers, IBD 50 chipmaker  Cavium (CAVM) jumped 10% to 83.42 after a long-rumored deal with Marvell Technology Group (MRVL) came to fruition. Marvell paid $6 billion for Cavium, a company known for its multicore processing, networking communications, storage connectivity and security products.

Elsewhere in the IBD 50, National Beverage (FIZZ) gapped above the 50-day moving average, rising 7% to 109.49. It’s 15% off its high as it works on the right side of a possible base. Note that National Beverage has an extremely small float of 11 million shares. To calculate float, take total shares outstanding and subtract shares held by management. Float is the number of shares available for trading.

IBD 50 name YY Inc. (YY) snapped back after Thursday’s downside reversal in lower volume. Shares of the China-based name rose nearly 8% in strong turnover.

China stocks outperformed again, a common theme in recent weeks amid an avalanche of strong reports from the world’s second largest economy. Shares of Alibaba (BABA) were up 1.5% on news it’s investing $2.9 billion in China hypermart operator Sun Art Retail. Hypermarts sell everything from electronics to fresh produce.

NetEase (NTES), on the other hand, was volatile after two sessions of sharp gains. Shares dropped nearly 8% to 339.29 — poor action after Thursday’s breakout over a 320.77 cup-with-handle buy point (see daily chart).

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