Stocks Continue To Recover; Alibaba Reaches 20% Profit-Taking Level – Investor's Business Daily

This article was originally published on this site

XAutoplay: On | Off The stock market moved higher early Friday as stocks looked to continue their recovery from Wednesday’s heavy sell-off.

The S&P 500 paced the major indexes with a 0.8% advance, while the Nasdaq and Dow Jones industrial average followed up with gains of 0.6% each. Volume fell on both the NYSE and the Nasdaq vs. the same time Thursday.

Among the Dow industrials, Caterpillar (WMT) rumbled 2.1% higher to lead the blue-chip index. Other leading blue chips were General Electric (GE) and Wal-Mart (WMT), rising 1.7% each.

On the downside, Cisco Systems (CSCO) fell 0.7%. Shares are under the 200-day moving average line.

Among the S&P 500 components, leading stocks in the stock market today were software firm Autodesk (ADSK), drug distributor McKesson (MCK), and tractor maker Deere (DE). All three companies had just reported strong earnings results. Autodesk surged almost 17%, McKesson jumped 9% and Deere moved up 8%.

Among leading stocks, Nvidia (NVDA) moved up 2.3% to notch a new high and has fully recovered from Wednesday’s 6.6% drop. The graphics chip maker was initiated at outperform at Bernstein with a 165 price target.

Alibaba (BABA) jumped 3% after receiving price-target hikes early Friday. The Chinese e-commerce giant reached the 20% profit-taking level from a 104.67 cup-with-handle buy point. Investors could begin to take profits in the market leader, but investors with high levels of conviction could decide to hold for further gains. Fellow China stocks JD.com (JD) and NetEase (NTES) rose 2% and 0.9%, respectively.

Among earnings releases, leading chip stock Applied Materials (AMAT) and customer relationship software provider Salesforce.com (CRM) both surpassed earnings estimates late Thursday, moving up 1% and 0.8%, respectively. The chip equipment provider’s quarterly earnings grew by more than 100% for a third consecutive quarter. On the downside, Foot Locker’s (FL) Q1 results missed top- and bottom-line forecasts early Friday, causing shares to plunge 15%.

The IBD 50 was predominantly positive in midday trading for a second straight day. On the upside, China-based Momo (MOMO) jumped 4.3%, while LogMeIn (LOGM) moved up 3.7% after falling below its 110.10 cup-shaped base buy point Thursday.

On the downside, PRA Health Sciences (PRAH) and Ulta Beauty (ULTA) fell over 1% each. The beauty products retailer is squarely within its 5% buy range from a 289.37 flat-base entry ahead of next week’s earnings release.

RELATED:

Wal-Mart, Alibaba, Autodesk Upgraded; Symantec Downgraded

Foot Locker Stock Plunges As Q1 Earnings, Sales Fall Short

Dow Jones Industrial Average And Dow Stocks; News And Analysis

Applied Materials Hails ‘Tremendous Momentum’; EPS Growth Tops 100% Again