The three-day stock rebound hit a stumble Tuesday, as major indexes weakened in afternoon trading. Even so, a handful of stocks continued acting as if a market rally was still on. They included Medtronic (MDT) and Home Depot (HD), which both gapped up following strong earnings reports that beat Wall Street estimates.
XMajor indexes sold off early, but climbed back within range of break-even as the trading day progressed. The Nasdaq composite edged down 0.5%, while the Dow Jones Industrial Average dipped 0.4%. The S&P 500 declined 0.6%. The small-cap Russell 2000 Index, meanwhile, shed 0.5%.
Volume continued lower for both the NYSE and Nasdaq.
Medtronic stock gapped up 3.3% after reporting blowout earnings of $1.26 per share in its first quarter ended July 26, vs. the Zacks Investment Research consensus for $1.18 a share. EPS rose 8% year over year. The big jump extended Medtronic stock to an all-time high above the 100.25 buy point out of a consolidation pattern.
Do-it-yourself retailer Home Depot, meanwhile, surged 4.3% after Q2 EPS beat estimates on Tuesday. After breaking out of a cup-with-handle base in June, Home Depot stock fell back and moved sideways, forming a flat base. It is now just below the 219.40 buy point for that base.
Social media site Twitter (TWTR), No. 1 on IBD's Big Cap 20 List, rose 1.4%. The stock gapped up on July 26 past a 41.02 buy point out of a cup with handle after the company posted an 829% jump in Q2 earnings. Twitter stock is now near the top of the 5% buy zone.
Another Big Cap 20 name, IBD Stock on the Move Shopify (SHOP), popped 3.1% after a Guggenheim analyst said that changes to the company's platform could drive big increases in sales. The cloud-based sales platform for small to midsize businesses emerged from a 28-week consolidation in early February and is well-extended after rising steadily since then. From the end of 2018, Shopify shares are up 168%. Shopify, with a 99 Composite Rating from IBD, is ranked No. 1 in its industry.
PaySign (PAYS), another Stock on the Move, surged 12% in above-average volume. PaySign stock, also with a 99 Composite Rating, provides prepaid card programs and payment processing for businesses and government. On July 22, it plunged 21.8% on record volume, but has since crept steadily upward after reporting record sales and earnings two weeks ago. It has a 99 Composite Rating and the No. 1 rank in its industry group.
Among exchange traded funds, the Innovator IBD 50 ETF (FFTY) edged slightly higher. If the small gain holds, it will be four straight up days for Innovator IBD 50 as it moves closer to regaining its 34.80 buy point of a flat base.
IBD Stock of the Day Coupa (COUP) jumped 2.8%. The company's Relative Strength Rating is a powerful 98, and the stock is now in a rare ascending base that puts it within reach of its 148.10 buy point.
Please follow Jones on Twitter at @IBD_TJones for more on growth stocks, financial markets and the economy.
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