Follow us on facebook


Indexes Dip; Tax Reform Gets Done As Bullish Sentiment Rises | Stock News & Stock Market Analysis

The Nasdaq composite, S&P 500 and Dow Jones industrial average edged lower in afternoon trading Wednesday as earnings reports from Micron Technology (MU), FedEx (FDX), Stitch Fix (SFIX) and Red Hat (RHT) got the most attention.

X Micron fared the best, up 4% after the maker of memory and data-storage chips reported a 71% rise in sales to $6.8 billion. Micron is getting support at the 50-day moving average for the first time after a recent breakout over a 33.03 buy point.

Volume on the NYSE and Nasdaq was tracking slightly lower than Tuesday’s levels in the stock market today. Small caps outperformed with the Russell 2000 up 0.4%.

The House passed the GOP tax bill, meaning the Tax Cuts and Jobs Act is ready for President Trump’s signature.

Money flowed out of bonds again. After hitting a nine-month high Tuesday, the 10-year Treasury yield added 3 basis points Wednesday to 2.49%.

Oil and gas, steel and mining stocks outperformed, while restaurant stocks and some health care names lagged.

Among the day’s movers, Biogen (BIIB) added nearly 2% as it works on the right side of a base. Credit Suisse upgraded the biotech to outperform from neutral and raised its price target to 385 from 321.

FedEx also did well, up more than 3%, after reporting strong earnings late Tuesday. The last proper entry for FedEx was when it reclaimed the 50-day moving average in late November.

Elsewhere, longtime leader Red Hat gapped below the 50-day moving average despite reporting another impressive quarter of growth. Shares slumped 5% to 122.25. The software leader had been running higher for months after a breakout from a base in February. After several trips to the 50-day line already, it was well-extended in price ahead of the results.

Stitch Fix recovered a good chunk of a 17% intraday loss, but shares still lost 6.5%. Earnings and sales at the new issue topped expectations, but Wall Street is still focused on high selling, general and administrative (SG&A) expenses at the company, which made up 40.5% of total revenue in the latest quarter, up from 35.4% in the year-ago period.

Top gainers in the IBD 50 included financials like Grupo Supervielle (SUPV) and Essent Group (ESNT) as well as managed-care firm Centene (CNC). All three showed gains of 2% or more. After a visit to the 50-day line last week, Centene is back above a 98.82 entry.

Meanwhile, the latest Investors Intelligence survey of newsletter writers showed a jump in bullishness in the latest week to 64.1% from 61.9%, but the stock market has been dealing with extreme bullishness for a while now. The latest reading was the 11th in a row in what Investors Intelligence calls the “danger zone” of 60% or higher. The survey is a contrarian indicator because the crowd is often wrong at extremes when it comes to identifying market tops and bottoms.

RELATED:

Bitcoin Tumbles As Coinbase Set To Resume Bitcoin Cash Trades Amid Probe

Senate OKs GOP Tax Cuts; These Companies Are Celebrating The Most

Micron Stock Pops As This ‘New Normal’ Dawns On Wall Street

Source link

Related posts:

No comments.

Leave a Reply