Dow Jones Leads Morning Rally, But This FANG Stock Falls Further

The major market averages offered a reprieve from Monday's volatility-fueled session, as they traded with modest gains in the stock market today. Social media giant Facebook (FB) continued to fall Tuesday, following the impending departure of the company's chief information security officer Alex Stamos.

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The Nasdaq looked to recover a portion of Monday's heavy losses with a 0.1% advance, as the tech-heavy composite tried to find support near its 50-day line. The Dow Jones industrial average rose 0.3%, while the S&P 500 trimmed its early gains to less than 0.1%. Both stock indexes are below their critical 50-day lines.

Among the Dow industrials, Chevron (CVX) was one of the day's top performers with a 1% rise. The energy giant is stuck under its 50-day line, as it battles for support at the 200-day line.

Among companies reporting earnings, Oracle (ORCL) dived nearly 9% after fiscal third-quarter earnings topped expectations, but revenue only met analyst views. Shares plunged below both the 50- and 200-day support levels and triggering a sell signal from a 53.24 flat-base buy point. The stock has been a laggard since September 2017, resulting in a weak relative strength line that didn't confirm the breakout's strength.

IPO Leader LexinFintech (LX) fell over 8% after the Chinese online lender reported weaker-than-expected Q4 earnings and sales results. The new issue has been volatile after a short-lived breakout above an 18.39 IPO-base entry on March 9. Just days later, the stock would trigger the 7%-8% sell signal before rebounding.

FANG stock Facebook continued sliding amid the fallout from the company's data debacle. On Monday, the stock fell nearly 7% — its largest daily percentage decline in years on huge turnover. Shares fell to their long-term 200-day moving average line where the fall was stymied. Shares fell over 2% Tuesday amid the impending departure of Alex Stamos and are hitting multimonth lows.

Inside the IBD 50, HealthEquity (HQY) surged over 8% after beating Q4 estimates late Monday. Shares were volatile after a Feb. 12 breakout above a 52.53 cup-with-handle entry, triggering the 7%-8% sell signal. But the stock found much-needed support at its 200-day line and has been in rally mode ever since.

On the downside, Sector Leader Five Below (FIVE) traded down about 1% ahead of its quarterly earnings release late Wednesday. Shares are forming a cup-with-handle base with a buy point at 71.69, as they maintain their 50-day support level.

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