A trio of Nasdaq-listed growth companies — Facebook, Abiomed and Biogen — helped pace a dreary session for the tech sector, but the action in stocks today also showed strength in small caps and select retail, energy and commodity names.
XApple (AAPL), meanwhile, briefly poked its head above a new 194.30 proper buy point in a base-on-base chart pattern Wednesday and Thursday but the rally fizzled. Still, volume was dull and shares closed just 0.3% lower to 104.21 Thursday.
Apple has been gradually raising its cash payout, in addition to initiating a huge new stock buyback of up to $100 billion. Apple's dividend yield is an annualized 1.5%. Read more on the new setup by the iPhone and MacBook giant in this Stock Market Today column.
Fiscal Q3 results are slated to arrive July 31 after the close. The Street sees Apple's earnings growing 31% to $2.18 a share on a 15% jump in revenue to $52.34 billion.
The Nasdaq composite dropped 1% as a huge sell-off in Facebook (FB) weighed following the social network's weaker than expected revenue growth in Q2 and a big revision lower in top-line growth for the rest of the year.
The Dow Jones industrial average rose 0.4%, despite fielding losses of 1 point or more from its blue chip components McDonald's (MCD), Home Depot (HD) and FAANMG stock Microsoft (MSFT). The S&P 500 edged up 0.3%.
McDonald's, down 1.7% to 156.14 in heavy turnover, has been working on a saucer-style pattern since peaking at 178.70 in early February. The world's largest restaurant chain reported a 15% increase in Q2 earnings to $1.99, 7 cents above the Thomson Reuters consensus view.
But revenue dropped 12% to $5.35 billion, stretching a drought in top-line growth to 16 straight quarters.
Small caps did well overall. The Russell 2000 closed 0.6% higher.
Volume shot higher on the Nasdaq and declined on the NYSE, according to early readings.
2 More Sell Signals
Abiomed (ABMD) and Biogen (BIIB) also triggered sell signals. The former, which reported solid second-quarter results (EPS up 73%, revenue up 36%), fell more than 10% to 384.10 in double normal volume. The stock also sharply undercut its 50-day moving average. Those who bought the stock recently need to defend their gains.
Biogen, the biotech giant and expert in multiple sclerosis, fell more than 7% below a 367.99 buy point in a cup-with-handle base as shares also gapped down more than 10% in volume that was double its usual level. The action triggered a key stop-loss defensive sell rule.
Biogen shares fell over a controversy on the details of a clinical study for a new Alzheimer's disease treatment jointly developed with Japan's pharmaceutical giant Eisai.
Abiomed has been a longtime member of the IBD 50, ranking No. 1 as of Wednesday's close.
An Energized Sector
On the upside, CVR Refining (CVRR) gained nearly 5% to 24.50 in rapid turnover. The small-cap energy play has been crafting a shallow cup-style base since hitting a 26 peak on May 29. Late Wednesday it reported strong Q2 earnings of 80 cents a share vs. a net loss of 13 cents a year ago.
Revenue rose 36% to $1.82 billion, making the biggest year-over-year gain in five quarters.
The Sugar Land, Texas, operator of oil refineries in Kansas and Oklahoma was chosen by IBD editors as the IBD Stock of the Day.
CVR boasts a hefty annualized dividend yield of 8.7%, vs. 1.8% for the S&P 500.
U.S. light sweet crude oil futures rose 0.3% to $69.53 a barrel. At the session high of $69.92, crude fell just 8 cents shy of retaking the $70 level.
The yield on the benchmark U.S. Treasury 10-year bond jumped 4 basis points to 2.98%, the highest level in July so far.
Please follow Saito-Chung on Twitter at @IBD_DChung for more commentary on stocks, chart action, buy points, sell signals, and financial markets.
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