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Small-Cap Stocks Lead, But This Country's Shares Fall — And It's Not Turkey

Small-cap stocks led the market higher at midday Tuesday, but a number of Chinese stocks came under assault.

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Indexes bounced back from a morning fade and were moderately higher. The small-cap Russell 2000 rallied 1.1%, re-establishing itself above the 50-day moving average.

The S&P 500 was up 0.7% and on pace to end a four-day losing skid. The Nasdaq added 0.7% also. The Dow Jones industrial average climbed 0.4%.

Home Depot (HD) hurt the Dow as the home-improvement retailer fell 0.4%. Shares fell despite the fact that second-quarter earnings and sales topped views, and management raised full-year forecasts.

But the retail sector was strong overall, with auto parts, department stores, drugstores, consumer electronics and apparel chains in the top 15 of 197 industry groups. Other consumer groups also led, including alcoholic beverages and some food industries.

The energy sector got some relief. Exploration and production groups were up more than 1%. The price of U.S. crude oil rose more than 1% to $68.03 a barrel.

Health Insurance Innovations (HIIQ) climbed to a new high in heavy volume. The stock is extended from a pullback to the 50-day moving average. Health Insurance Innovations was discussed Monday in IBD 50 Stocks To Watch.

Planet Fitness (PLNT) rose 4% and climbed back above the 50.83 buy point of an ascending base. The stock broke out of that unusual pattern Friday after the gym chain reported earnings, but soon stumbled. There's been no sell signal, however.

Leading stocks were acting well, with the Innovator IBD 50 ETF (FFTY) up 1.2%. The exchange traded fund is trying to climb back above its 50-day moving average, where it has met resistance for about a week.

But it was a bad day for Chinese stocks, with disappointing earnings and other news sparking sell-offs.

China's total retail sales grew 8.8% in July, MarketWatch reported, which came in lower than economist forecasts. MarketWatch quoted a Stifel analyst who said U.S. tariffs are having a larger impact on China's retail sector than previously expected. Turkey's financial crisis appears to be hitting some foreign stocks, too.

Baozun (BZUN) reversed sharply lower, sinking deeper below its 50-day line. The provider of services for e-commerce reported a revenue increase of 31% in local currency and adjusted earnings of 14 cents per share, topping views of 13 cents.

Alibaba (BABA) fell to an April 25 low and is near the 166 level where the stock bottomed that month. Shares of the internet company have fallen below the 50-day and 200-day moving averages.

New-issue Huya (HUYA) plunged 14% after earnings matched views but the livestreaming company gave weak guidance on Q3 revenue.

YY Inc. (YY), the parent company of Huya, gapped down to the lowest price since Sept. 7. YY beat profit estimates late Monday, but Q3 revenue guidance was light.

ZTO Express (ZTO) skidded 8% and fell back below the 50-day moving average in heavy trading.

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