The stock market was modestly higher in morning trade Wednesday, as stocks looked to recover from Tuesday’s sell-off. Department store Macy’s (M) surged above a buy point after its strong earnings release early Wednesday and sparked solid gains among other retailers. (For updates on this story and other market coverage, visit Stock News Today.)
The tech-heavy Nasdaq paced the major indexes with a 0.3% gain, while the S&P 500 moved up 0.1%. The Dow Jones industrial average inched lower.
Among companies reporting earnings, department store Macy’s (M) jumped over 5% after beating the Street’s Q1 earnings and sales estimates, while raising its full-year guidance. Shares surged into new high ground before paring those gains. A previous breakout above a 31.14 flat-base entry failed when the stock fell more than 7% below the buy point on May 10, forcing investors to cut their losses short. Now, the stock is back in buy range.
Other retailers were also on the advance. Costco (COST) rose 1%, as it approaches a 199.14 cup-with-handle buy point. Blue chip stock Nike (NKE) advanced about 1.5% on its way to a breakout above a 70.35 flat-base buy point.
Chinese internet giant Tencent (TCEHY) advanced over 6% after announcing strong revenue growth in the most recent quarter. The stock is finding support near its long-term 200-day moving average line, as it tries to shape the right side of a potential base.
F5 Networks (FFIV) fell just 0.2% after being downgraded from buy to neutral at DA Davidson. The analyst firm has a 181 price target on the company, just 5.7% higher than Tuesday’s closing price. Despite the company’s strong positioning in its new product cycle, shares have minimal upside compared to the 12-month rating, resulting in the rating reduction, according to DA Davidson. Shares have been strong since a breakout above a 154.01 flat-base buy point, according to MarketSmith’s chart analysis.
Inside The IBD 50
Among the top growth stocks, Nvidia (NVDA) moved up nearly 1% in early trade Wednesday. The stock’s breakout has been fading, having given back all of the stock’s advance since a May 7 breakout above a 239.35 double-bottom entry. But, the stock is still holding above that buy point and the 50-day line.
Micron Technology (MU) was one of the IBD 50’s top-performing stocks with an over-3% advance. RBC initiated coverage on the stock with an outperform rating and an 80 price target. Shares are shaping the right side of a potential base.
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