Stocks Take A Lunch Break, While Gamers Rule The Market – Investor’s Business Daily

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Stocks rallied into noon but turned mixed again in early afternoon trading, while Nvidia (NVDA) and other computer gaming stocks put on a show with a week’s worth of fireworks that continued in the stock market today.

The Nasdaq rose 0.3%, while the S&P 500 fell 0.2% and the Dow Jones industrial average lost 0.3%. Volume was tracking lighter than at the same time Thursday.

Friday’s gaming superhero was Nvidia, which makes graphics chips used in computers, game consoles and mobile devices. A blowout earnings report propelled the stock to a 14% gain and an all-time high in massive volume.

Nvidia reported adjusted first-quarter EPS of 46 cents compared to Wall Street estimates of 31 cents. Revenue was $1.3 billion vs. estimates of $1.26 billion. Analysts weighed in with upgrades and higher price targets.

The stock is now up 22% since breaking out of a cup-with-handle base March 16.

The gaming software industry group was one of the day’s best performers, up more than 1%. The industry put on a show this week, with unexpectedly good earnings reports and spiking stocks.

Electronic Arts (EA) gapped up for a 14% gain Wednesday after reporting better-than-expected earnings. Electronic Arts rose again Thursday and was hanging on to a gain Friday.

Activision Blizzard (ATVI) was up 1% and closing in on a new all-time high. Activision reported earnings May 5 that beat estimates. Shares gapped out of a cup-with-handle base on the news.

NetEase (NTES), which provides interactive games in China, rose nearly 5%. It impressed investors  late Wednesday with earnings that were 79% above a those year earlier. NetEase appears to be building the right side of a base.

Take-Two Interactive (TTWO) was up nearly 2% and also appeared to be building the right side of a base.