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Stocks Reversing; Why Leaders In This Hot Industry Are Suddenly Tumbling | Stock News & Stock Market Analysis

The stock market erased some of its small gains, and the Nasdaq composite was barely higher in afternoon trading Wednesday.

XAutoplay: On | OffThe Nasdaq, up only 0.2% earlier, was up a fraction. Facebook (FB), a major Nasdaq component, was one to watch because it is trying to climb back above the 50-day moving average. It could be a key threshold for the social media stock as it tries to complete a base.

The S&P 500 and Dow Jones industrial average held on to 0.1% increases. Dow component 3M (MMM) climbed past the 214.67 buy point of a flat base.

The Russell 2000 was off 0.3% and at risk of ending an eight-day win streak. As The Big Picture noted, the small-cap index has been rallying sharply for weeks and seems due for a rest.

Volume was tracking lower compared with the same time Tuesday. Advancers and decliners were about evenly split on the NYSE and Nasdaq. Automakers, utilities, and homebuilders, one of the hottest industry groups, were leading today’s market.

Corning (GLW) broke out of a cup with handle. But volume was running only about half its usual pace and the price increase also lacked power. The specialist in fiber optics, ceramics and other high-tech materials has turned itself around, posting EPS gains of 24%, 47%, 39% and 14% after several quarters of declining earnings.

Boston Beer (SAM) cleared the 163.75 buy point of a cup with handle as volume climbed 30% more than average. Last month, Credit Suisse upgraded the maker of Samuel Adams beer to neutral from underperform and noted that Boston Beer could be acquired by private equity firms or Molson Coors (TAP).

In the same industry, Constellation Brands (STZ) climbed 1% in some of the heaviest volume above average. The stock is finding support in a pullback to the 50-day moving average.

Among stocks down in unusual volume, the two leading RV stocks slid as they cool off from rapid gains. Thor Industries (THO) fell nearly 2%, on track to end a seven-day win streak, and Winnebago Industries (WGO) gapped down to a loss of more than 6%. Stifel Nicolaus downgraded Winnebago to a hold rating, citing concerns that the stock has gotten overheated, reports said.

Both stocks remain well-extended from their breakouts several weeks ago, but the abrupt break in their price uptrends warrants attention.

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