Stocks swung sharply higher out of the starting gate Tuesday, as the Dow Jones industrial average rebounded from support at its 50-day moving average and Nasdaq looked to reverse its three-day decline.
X The Nasdaq Composite jumped 0.7% as Apple (AAPL) traded up 1.2% and all four FANG stocks pulled higher in the premarket session. The Dow Jones industrial average and S&P 500 each climbed 0.5%.
China's markets, which exerted a positive influence on Monday's session in the U.S., posted uneven gains Tuesday. Hong Kong's Hang Seng Index jumped 0.9%, while the Shanghai Composite managed only a 0.1% gain. Markets in Europe traded firmly higher in their afternoon session, with Frankfurt's DAX up 1.1%, the FTSE 100 in London and Paris' CAC-40 each showing a 0.7% advance.
China names turned generally positive in early U.S. trade. Ctrip.com International (CTRP) and JD.com (JD), which led the Nasdaq 100 in Monday's session, traded higher. TAL Education (TAL), which led the IBD 50 on Monday with a 3% surge, jumped 2%. Alibaba Group Holdings (BABA) and Baidu (BIDU) showed modest gains. Sina (SINA), Weibo (WB), YY (YY) and New Oriental Education & Technology (EDU) all shed premarket gains and moved higher.
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Cisco Systems (CSCO) led the Dow, up 01.2%. Caterpillar (CAT), DuPont (DD) and Nike (NKE) were close behind.
In earnings news, shoe retailer DSW (DSW) surged 20%, and China-based JA Solar (JASO) soared 6% after reporting second-quarter results. China-based educator Tarena International (TEDU) crumbled 23% after its second-quarter report.
Homebuilder Toll Brothers (TOL) dropped 2% after reporting better-than-forecast fiscal third-quarter earnings, but revenue growth that stopped just short of analyst views. Management also trimmed its full-year guidance, pushing completion of 150 homes to the first quarter from the fourth, due to a floor joist recall from a lumber manufacturer. The stock is pulled back 7% from a July 10 high, and trading below its 10-week line of support.
Homebuilder stocks also felt some pressure from economic news, with the Federal Housing Finance Agency reporting home price growth slowed in June, putting its House Price Index up 0.1%, vs. a 0.3% gain in May and consensus forecasts for an uptick to 0.5%.
Mining and energy play BHP (BHP) hefted a 2% gain after reporting year-end results and announcing it was seeking options to sell its onshore shale oil and gas operations in the U.S. The Australia-based outfit turned to profit, from loss, during the half-year period but earnings of $1.35 per share per quarter fell short of analyst expectations.
The stock is just below a 41.89 buy point in a seven-month cup base.
On the IBD 50 list, Nova Measuring (NVMI) climbed more than 1%. The stock is struggling to start up the right side of a possible double-bottom base.
China-based mobile social networking site Momo (MOMO) dumped 15%, despite strong beats on its second-quarter earnings and revenue lines, and raising third-quarter revenue guidance above analyst targets. The loss sent shares far below the stock's 10-week moving average, and more than 7%-8% below a buy point at 46.05, triggering an automatic sell rule.
China's Baozun (BZUN), an online retail services provider, toppled 14% after reporting weak second-quarter results late Monday. The decline sent shares back to a test of support at the stock's 10-week moving average.
The Richmond Federal Reserve's regional manufacturing index at 10 a.m. ET. Tuesday's after-hours trading session is scheduled to include reports from chipmaker Cree (CREE), and software developers Intuit (INTU) and Salesforce.com (CRM), among others.
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