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Nasdaq Solidly Higher As FANGs Bare Their Teeth Again

The Nasdaq composite found comfort Tuesday in another strong earnings report from Netflix, fueling a broad rally for FANG stocks overall.

The Nasdaq outperformed in afternoon trading, up 0.5%, while price action was quieter in the Dow Jones industrial average and S&P 500. The Dow was fractionally lower and the S&P 500 eked out a small gain. Volume on the NYSE and Nasdaq was tracking very close to Monday's levels in the stock market today.

X Travelers (TRV) was a big winner in the Dow, up 5% on strong earnings. It cleared a 138.05 flat-base entry Monday ahead of the results. But Dow component Johnson & Johnson (JNJ) underperformed on earnings, slumping nearly 4%. The consumer products firm is below a 144.45 buy point but still holding above the 50-day moving average.

Netflix (NFLX) was a big gainer, up 9% to 248.50, after reporting bullish earnings and sales late Monday. Headed into earnings, Netflix was extended from a 204.48 entry. Among the other FANG names, Facebook (FB) and Leaderboard name Amazon.com (AMZN) rose more than 1%, while Alphabet (GOOGL) added 0.7%.

Among China names, Alibaba (BABA) enjoyed a nice bounce off the 50-day moving average, rising 4% to 191.45 in heavy volume. It's working on a later-stage base with a 191.85 buy point

Among breakouts, enterprise software name Workday (WDAY) cleared a 114.98 cup-with-handle buy point (seen on the day chart). In early December, Workday hit an intraday low of 95.35, undercutting the low of a prior base. This served to reset the base count. Workday's weekly chart shows an alternate entry at 116.99.

In the biotech space, Vertex Pharmaceuticals (VRTX) rose to the top of a six-month consolidation that shows a conventional entry at 167.95. Shares jumped nearly 3% to 166.29. Vertex owns a Composite Rating of 98 thanks in part to big earnings and sales growth in recent quarters.

Meanwhile, President Trump's decision to impose new duties of as much as 30% on foreign-made solar equipment fueled a big early gain for First Solar (FSLR) but shares reversed lower. After rising nearly 9% intraday, shares were down 1%. The stock could be poised for a second test of the 10-week moving average after a breakout in late October.

The 10-year Treasury yield slipped 2 basis points to 2.63% ahead of a busy week of economic data that has December existing home sales data due Wednesday and new-home sales data out Thursday. Meanwhile, the first reading on Q4 gross domestic product is due Friday. Economists expect growth of 2.9%.

At the New York Mercantile Exchange, U.S. crude oil futures added just over 1% to around $64.33 a barrel.

Results from United Airlines (UAL) are due after the close. It's working on a big cup-with-handle base with a 79.10 buy point ahead of the results. Shares were up 0.5% to 77.24.

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