Stocks posted a modestly positive start on Tuesday, as earnings news and positive trade among China-based names gave the premarket session an additional boost.
[ibd-display-video id=2326089 width=50 float=left autostart=true]The Dow Jones industrial average, Nasdaq Composite and S&P 500 all opened ahead 0.1%. That was enough to boost both the Dow and the S&P 500 to new high ground at the start of trade.
The economic news calendar is light Tuesday, dominated by auto makers’ September sales numbers expected to roll in throughout the day. General Motors ( GM ) gained more than 3% in early trade, after being upgraded to buy, from neutral, by Bank of America.
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Tesla ( TSLA ) dragged more than 2% lower at the open after reporting late Monday its third-quarter deliveries were below estimates due to a production bottleneck . Tesla shares have been struggling to retake support at their 10-week moving average, after undercutting a 370.10 buy point by more than 8% and triggering the automatic sell rule .
Advancing stocks controlled the Dow, with Wal-Mart ( WMT ) easily leading the group, up 0.9% in opening trade. American Express ( AXP ) jumped 0.7%, after winning a lawsuit Monday that had accused the company of defrauding shareholders regarding a co-branding venture with Costco Wholesale ( COST ).
Apple (AAPL) swung up 0.6% and Netflix (NFLX) outpaced its FANG stock peers with a 1% advance. Teh gain put Netflix shares 6% below a 190.05 buy point in a cup-with-handle base.
Homebuilder Lennar (LEN) rattled off a 3% gain in early action after its fiscal third-quarter earnings easily outpaced analyst estimates, while orders, pricing and backlog numbers showed progress.
The stock has regained support at its 10-week moving average, trading below buy points at 54.96 and 55.85 in a four-month flat base.
Among IBD 50 stocks, Kemet [ticker symb=KEM ] jumped 4% to grab an early lead. The stock is extended after a strong-volume rebound from support at its 10-week moving average.
China-based leaders moved generally higher as Hong Kong’s market reopened after a three-day holiday and surged 2.3% in its best single-day gain since March. Positive manufacturing data released while China’s markets were closed Monday, and another cut to the reserve rate required of banks by the People’s Bank of China on Saturday, appeared to drive the move.
JD.com (JD) jumped 2.2% in early trade. The stock is is forming a possible double-bottom base with a potential entry at 46.03.
Alibaba Group Holdings (BABA) gained 1.5%. The IBD 50 and IBD Leaderboard issue has hovered between support at its 10-week moving average and a 177.10 buy point in an ascending base pattern .
IBD 50 name Sina (SINA) also rose more than 1%. Tal is extended, trading up 51% since clearing a flat base in July. Sina is trading below a 118.95 buy point in a three-weeks-tight pattern .
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