Key U.S. equity market indexes retreated on news that President Trump has instructed aides to begin drafting a plan for an additional $200 billion in tariffs on Chinese imported goods. Yet the decline in stocks today remained light. A new China growth stock held above the proper buy point after breaking out this week.
News on a 0.1% August month-on-month rise in U.S. retail sales hardly made a dent on Wall Street.
Meanwhile, Chinese e-commerce app Pinduoduo (PDD) continued its big-swinging ways, but continued to show strength. Shares, which bolted out of a new IPO base with a 27.64 correct buy point, dropped nearly 4%. But at 28.93, the large-cap growth stock held above the proper entry.
Shares of Pinduoduo also bounced bullishly off the morning low of 26.28. The 5% buy zone goes up to 29.02.
Indexes pared losses. The Nasdaq composite dropped 0.1% after rising as much as 0.3% in the early going. The S&P 500 and the Dow Jones industrial average sank around 0.1%. Volume is running lower vs. the same time Thursday on both main exchanges.
Some top growth stocks in terms of both fundamentals and technicals look poised to end the week with flair.
Netflix (NFLX) is on pace to rally 4.7% for the week, nearly recouping all of the prior week’s 5.2% slide. The online streaming giant has been forming a cup-style base since peaking 11 weeks ago at 423.20.
Time For A Correction By AMD?
Advanced Micro Devices (AMD) has risen for a sixth straight week, but the near-vertical rate of its recent rise suggests that a pullback would be reasonable to expect.
At 32.19, the chipmaker stands a lofty 124% above its key 200-day moving average, currently at 14.34. IBD research has found that most of the biggest stock market winners tend to go into a correction after rising that far above the key long-term support-and-resistance line.
AMD has now rallied as much as 163% past a 12.98 entry in a double-bottom base.
See the 200-day moving average, drawn in black, in every daily chart at MarketSmith, IBD’s most advanced stock charting and screening service.
Pinduoduo Stock Analysis
Going back to Pinduoduo, the online and mobile shopping platform does not make money but revenue is going at a near-exponential clip.
Revenue soared 264% in 2017 to $266 million.
In the past four quarters, Pinduoduo posted revenue of $63.7 million, $181.1 million, $220.1 million and $408.9 million. Over that four-quarter period, the company lost on average 3 cents a share.
Pinduoduo has 1.108 billion shares outstanding and a float of 183 million. The market cap is currently $32 billion.
In other markets, U.S. crude oil futures rose 0.8% to $69.15 a barrel and is on track for a nearly 2% gain for the week.
The yield on the benchmark U.S. Treasury 10-year bond edged up 1 basis point to 2.98%. The 3-month T-bill stands at 2.15% and the 2-year note is at 2.77%.