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Stocks Bounce As Advance Auto, Amazon Rise; Home Depot Slips

Stocks opened higher Tuesday, despite some hard hits among China-based names, as the market looked to shake off two days of declines.

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Advance Auto Parts (AAP) ran higher on quarterly results, while Home Depot (HD) reversed into a decline. China stocks took steep early losses, led by Huya (HUYA) and YY (YY). Nanometrics (NANO) led the IBD 50 list after scoring a breakout on Monday.

The Dow Jones industrial average popped 0.3% at the open, with DowDupont (DWDP) jumping to an early lead. The S&P 500 and Nasdaq Composite each climbed 0.4% as Amazon.com (AMZN) led the FAANG stocks and Nvidia (NVDA) and O'Reilly Automotive (ORLY) posted the top gains among Nasdaq 100 stocks. (For updates on this story and other market coverage, visit the Stock Market Today.)

Turkey: Lira's Dive Paused

Turkey's lira rebounded Tuesday, marking a pause in the currency's week-long plunge that has rattled global markets. The crisis, the results of economic and monetary policy missteps by Turkey's government and central bank, has worsened due to trade penalties from the U.S. The White House has stood firm that Turkey would see no relief from trade penalties until it releases U.S. clergyman Andrew Brunson. Brunson was detained during a series of mass arrests in 2016 in Turkey, following an attempted coup d'etat. The lira's decline has stirred fears that banks with large amounts of loans to Turkey — particularly European banks — could be affected by heavy defaults.

China: Economy Slows; European Stocks Weaken

China's markets dipped as economic news showed the trade war starting to bite into growth. Growth in fixed-asset investment for the year through July slowed to its lowest reading in two decades. Infrastructure spending slumped, and retail sales, factory output and credit activity were all below expectations.  The Shanghai Composite dipped 0.2%, and Hong Kong's Hang Seng dropped 0.7%.

In Japan, the Nikkei 225 surged 2.3%, snapping a four-day losing streak. Europe's markets turned lower in afternoon trade. The DAX in Frankfurt and the CAC-40 in Paris each slipped less than 0.1%. London's FTSE 100 wrestled with a 0.2% loss.

Home Depot, Advance Auto Climb; Nanometrics Jumps

Dow Jones stock Home Depot dug into 1.3% loss after reporting a 36% jump in earnings and an 8% revenue advance in the second quarter. Both numbers topped analyst targets. Management raised its full-year revenue and earnings outlook. It left earnings just below, and revenue above, analyst views. Home Depot shares ended Monday 4% below a 201.70 buy point in a cup-with-handle base.

Advanced Auto paced the S&P 500, up 6% after reporting its first combined earnings and revenue increase in 13 quarters. Its 25% per-share earnings advance easily cleared estimates. Revenue also was above forecasts, up 3%. The company added $185 million to its existing share buyback program, raising the total to $600 million. The stock is up 41% from an April low, climbing the right side of a 20-month correction.

Amazon perked up 0.8%, easily leading the FAANG stock tech giants.  The stock is scratching off new highs, working on its 17th gain in the past 19 weeks. Investors have begun to bet on how soon the company's market capitalization will clear the $1 trillion mark, which would require a 7% increase in stock price. Apple (AAPL) became the first company to achieve $1 trillion status, topping that level on Aug. 2.

Tesla continued to make news, as the company announced its board of directors had formed a special committee to review prospects for taking the company private. Chief Executive Elon Musk has said he was considering options to take the company private at 420 a share, and the Saudi Arabia's sovereign wealth fund was one party helping to foster the process. Tesla shares traded a fraction lower early Tuesday. The stock is just below a 373.83 buy point in a seven-week cup base.

Nanometrics led the IBD 50 list, up more than 3% in premarket trade. Baozun (BZUN), also an IBD 50 issue, bucked the morning's trend among Chian stocks and jumped more than 3%. Nanometrics broke out Monday above a 43.10 buy point in a cup-with-handle base. Baozun is consolidating below a June high.

Other stocks in early motion on earnings news included Tapestry (TPR) and National Vision Holdings (EYE).

China Stocks Under Pressure: Huya, YY

Among China-based stocks trading in the U.S., Huya fell furthest, down more than 12% after meeting second-quarter expectations, but providing weak third-quarter guidance late Monday. The volatile new issue ended Monday up more than 160% from its May IPO, and down 35% from its June high.

YY skidded 8% lower, also on weak guidance. The stock has been in a weakening consolidation since January.

Vipshop Holding (VIPS) dropped nearly 10% after reporting both revenue and earnings below consensus forecasts. The online retailer reported a 6% rise in its number of active customers, to 29 million. Total orders increased 31%, but management issued third-quarter revenue guidance below analysts expectations. The stock ended Monday down 55% from a February high.

Canadian Solar (CSIQ) — headquartered in Ontario, Canada, but with its operations in China — dropped nearly 3% in premarket trade. Its second-quarter earnings surged 273%, but revenue fell 6% — more than expected by analysts.

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