The stock market gave up modest gains late Wednesday and closed mainly lower, but leading stocks outperformed the major indexes.
XIndexes made a positive reversal and held gains late in the day, but stocks faded in the final half-hour of trading. The market has been more volatile on new worries about the trade dispute between the U.S. and China.
The Dow Jones Industrial Average closed a fraction higher and below its 50-day moving average for a second straight day. The S&P 500 lost 0.2% and the Nasdaq composite 0.3%. Both held above their 50-day averages.
Volume fell from Tuesday's levels, according to preliminary figures.
Leading stocks outperformed, something that can be considered a good sign for the market's attempt to bounce. The Innovator IBD 50 ETF (FFTY) climbed 0.5%, well above the main indexes. The ETF is trying to rise back above its 50-day moving average after finding support Tuesday at the nearby 200-day line.
Retail, health care, real estate and consumer discretionary were Wednesday's best performing sectors. The Real Estate Select Sector SPDR Fund (XLRE) is back above its 50-day line, where there's been tentative support the past three weeks.
More Earnings-Related Moves
Earnings reports sparked a few breakouts.
Frontdoor (FTDR) broke out of a flat base in heavy volume, and shares closed within buy range of the 37.72 buy point. Frontdoor is a provider of home service plans.
Zayo Group (ZAYO) gapped up past the 32.41 buy point of a long cup-with-handle base in huge volume. While the breakout was bullish, Zayo shares may not be trading publicly very long. The company agreed to be taken private in a deal valuing the company at $35 a share, or $14.3 billion.
Zayo, which provides high-speed network communications and cloud technologies, is being acquired by affiliates of Digital Colony Partners and EQT Infrastructure IV fund. Zayo also reported earnings this morning.
Earnings sell-offs included Grand Canyon Education (LOPE), which slid below its 50-day moving average, and TripAdvisor (TRIP), which gapped below its 50-day and 200-day moving averages.
Gray Television (GTN) missed profit estimates and tumbled further below the 50-day line, triggering a sell signal. The stock was removed from IBD Leaderboard before the earnings came out. Performance Food Group (PFGC) gapped below its 50-day line in big volume after earnings came in below views.
Match (MTCH) surged more than 12% in heavy volume and is now extended from a 60.01 buy point. Match rallied after the company beat sales and profit expectations. The company — whose dating apps include Match.com and Tinder — reported earnings rose 28% to 42 cents a share, and revenue climbed 14% to $464.6 million.
Juan Carlos Arancibia is the markets editor of IBD and oversees IBD's market coverage. Follow him at@IBD_jarancibia
