Stocks Turn Mixed, FANG Stocks Pressured; Wal-Mart Breaks Out, In Buy Zone

Stocks Turn Mixed, FANG Stocks Pressured; Wal-Mart Breaks Out, In Buy Zone

The major market indexes were mixed, heading into afternoon trade Tuesday.  The Dow Jones industrial average led the way, rising around 0.2% – buoyed by strength in retailer Wal-Mart Stores ( WMT ).

[ibd-display-video id=2345484 width=50 float=left autostart=true]Meanwhile, the S&P 500 moved up 0.2%. The tech-heavy Nasdaq was at its break-even mark. All three indexes made record highs. Volume was tracking significantly higher across both exchanges vs. the same time Monday.

Among the Dow Jones Industrial  components, Wal-Mart remained in its 5% buy range from an 82.09 flat-base entry in afternoon trade Tuesday. The discount retailer jumped over 5% after announcing a $20 billion buyback, while standing behind its fiscal-year 2018 guidance. The Bentonville, Arkansas-based company also said it would look to further cut costs as competition with e-commerce behemoth ( AMZN ) intensifies.

Amazon shares traded 0.6% lower.

On the downside, Intel ( INTC ) declined over 1%. The stock is still in buy range from a 38.55 flat-base entry after a breakout on Oct. 2. The 5% buy zone tops out at 40.48,

Airline stocks flew higher in the stock market today . American Airlines ( AAL ) and United Airlines ( UAL ) forecast better-than-expected Q3 unit revenue and margins early Tuesday, sparking advances of 4.8% and 5.5%, respectively. American is building the right side of a cup-shaped entry with a 54.58 entry. United remains stuck under long-term 200-day line.

Meanwhile, Delta Air Lines (DAL) will report its Q3 results on Wednesday before the market open. The airline carrier is forging a cup base with a 55.85 buy point. Analysts expect the airline’s third-quarter earnings to decline to $1.54 per share on revenue of $11.4 billion.

FANG stocks were under pressure in afternoon trade Tuesday with Netflix (NFLX) setting the pace to the downside, falling 1%. Shares are still in buy range after last week’s breakout above a 190.05 cup-with-handle buy point. Facebook (FB) declined 0.6% as it continues to work on a flat base with a 175.59 entry.

Leading growth stock Nvidia [ticker symb= NVDA] leapt higher after the graphics-chip maker unveiled new self-driving taxi hardware, and a partnership to launch an autonomous delivery truck fleet in 2018. Shares – which had been up as much 4% earlier Tuesday – were up almost 2%. Shares notched a fresh record high, and were up about 8% from a 174.66 flat-base entry.

Fellow leading chip stocks Applied Materials (AMAT) and Broadcom (AVGO) were on the decline. Applied reversed from new highs, falling 1.1%, but is still about 9% above a 47.69 cup-with-handle buy point. Broadcom was turned away from its 50-day line, dropping nearly 1%. Shares continue to etch a flat base that shows a 259.46 potential buy point. A potential flaw is the stock’s lagging relative strength line that indicates significant underperformance of the general market.

Within the IBD 50 , Leaderboard member Grubhub (GRUB) moved up 1.8%. The food delivery service has been stuck under its 50-day line since Oct. 5.

On the downside, China-based Sina (SINA) extended a losing streak to five trading sessions, declining another 3% in heavy trading Tuesday. Shares are rapidly approaching their 50-day line. Still, the stock is up 13% from a 97.90 cup-base entry despite its recent fall.

IBD’S TAKE: Did you know that the flat base , which reflects an unwillingness among large fund managers to dump their shares, often serves as a launchpad for big breakouts and tremendous price gains for many growth stocks? Learn the elements of this bullish pattern via this Investor’s Corner column and add it to your knowledge of charts so you can have an edge on Wall Street.


Wal-Mart Sees 40% Online Sales Jump, Sets $20 Billion Buyback

Dow Jones Industrial Average And Dow Stocks: News And Analysis

American, United Airlines Jump On Strong Q3 Unit Revenue; Delta On Tap

S&P 500 Q3 Earnings Growth Likely Slowed, But These Sectors Strong: Investing Action Plan

Retail And E-Commerce News And Stocks To Watch

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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