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Stock Market Dips, Apple Extends Gains; Nvidia, Tesla Gearing Up For Breakout?

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Stocks closed slightly lower Monday ahead of another busy week for earnings.

Apple (AAPL) and Boeing (BA) led the Dow Jones industrial average; Nvidia (NVDA) and Tesla (TSLA) drew closer to potential breakouts.

The Nasdaq and Dow industrials each ended down less than 0.1%, while the S&P 500 dipped 0.2%. Small caps lagged as the Russell 2000 gave up around 0.8%. Volume was lighter on the NYSE and Nasdaq vs. Friday, according to preliminary figures.

Toymakers, gold miners and auto manufacturers led the upside in the stock market today. Oil, meat products and retailers underperformed. West Texas intermediate crude prices slid more than 1.3% to $53.12 a barrel; gold futures rose 1.3% to $1,236.90 an ounce.

Apple, one of the biggest gainers on the Dow, rose 1% to finish at a new 18-month closing high. The stock has extended its gains since gapping up 6% Tuesday after its fiscal Q1 results topped views on better-than-expected iPhone sales. Prior to that, it was stuck in buy range after clearing a 118.12 cup-with-handle entry on Jan. 9.

Hasbro (HAS) gapped up and soared 14% to a new high in massive trade after the toy maker reported Q4 results that topped views by a wide margin, thanks to strong sales of Disney princess and "Frozen" toys. Shares vaulted well past an 88.63 conventional entry of a long flat base but are in buy range from the opening price of 94.11 during Monday's gap up.

Disney (DIS) eased nearly 1% ahead of its fiscal Q1 earnings report due out after the close Tuesday. Analysts expect an 8% slip in earnings per share to $1.50 on 0.1% higher revenue growth to $15.26 billion. Earnings fell 8% in the September-ended fiscal fourth quarter.

The stock remains in buy range from a 106.36 handle buy point cleared Jan. 3.

Tesla advanced 2% and is less than 1% below a 258.56 cup-with-handle buy point. The electric car maker last week changed its name to Tesla Inc., dropping the Motors. Analysts expect that the company will lose money this year and next. It reports Q4 results Feb. 22.

On the IBD 50, Nvidia was the top gainer with a near 3% move, finishing just shy of a new closing high as it nears a 120.03 cup-base buy point. The stock shrugged off a downgrade from Roth Capital, which lowered its rating to neutral from buy but raised its price target to 120 from 95, citing valuation. Analysts expect the graphics chip designer to earn 83 cents a share minus items on $2.1 billion in revenue when it reports Thursday after the close.


IBD'S TAKE: Nvidia and Inphi are among top-rated fabless chipmakers reporting earnings this week. Find out which other stocks get high marks in the group at IBD Stock Checkup.


Economic data on tap for Tuesday include international trade and the Labor Department's Job Openings And Labor Turnover Survey (JOLTS), both for December.

Buffalo Wild Wings (BWLD), General Motors (GM), Inphi (IPHI), Microchip Technology (MCHP) and Zillow (Z) are just a few of the companies reporting earnings Tuesday.

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