The Dow Jones Industrial Average lagged the stock market today, but the Nasdaq rallied on earnings surprises, ahead of quarterly reports from Amazon (AMZN), Intel (INTC) and Visa (V).
XThe Nasdaq rose 0.8% and the S&P 500 held a 0.2% gain, but the Dow Jones industrials dipped 0.1%. Small caps tracked by the Russell 2000 gave up 0.2%. Volume was higher on both exchanges vs. Wednesday, according to early data.
The Dow Jones index got a boost from Dow Inc. (DOW), which surged nearly 5% in above-average volume after a quarterly beat on both the top and bottom lines. Other blue chip winners included Microsoft (MSFT), United Technologies (UTX) and Visa. But 3M (MMM) weighed, down 4%, to test its 50-day moving average.
Microsoft, up 2%, gapped up above its 50-day line in twice normal trade. It's coming back near a 141.78 buy point of a prior flat base, but may soon complete a new flat base with a 142.47 buy point. The software giant reported strong fiscal Q1 results late Wednesday.
Intel picked up 1% amid a chip rally, and results from Visa came out after the close. Intel is working on the right side of a rather choppy base with a 59.69 potential buy point. After the close, Intel leapt 7%, after its Q3 sales and earnings smashed analyst targets. The chip giant boosted its full-year sales forecast. Visa edged higher in extended trading after it reported results.
But Amazon.com was down more than 8% after a Q3 earnings miss, though revenue beat. Earnings also fell for the first time since Q2 2017. The stock has been stuck below its 200-day line the past month.
Automakers, chip and software stocks were some of the top gainers among IBD's 197 industry groups. The automakers group cruised more than 13% higher, thanks primarily to an unexpected profit from Tesla (TSLA).
Tesla's Big Earnings Surprise
Tesla raced 18% higher in rapid turnover to its best level in nearly eight months. It's working on the right side of a long consolidation that dates back to December. Shares remain 21% off their 52-week high. Several analysts raised their price targets after the electric car maker's surprise profit late Wednesday. Tesla cited reduced costs.
Chip stocks on the move included MKS Instruments (MKSI), which gapped up and soared 16% to a new 52-week high. Shares are now well extended past a 95.83 buy point of a cup with handle. The Massachusetts-based chip gear maker reported Q3 results that topped views and offered a higher-than-expected Q4 outlook.
Lam Research (LRCX) gapped up and leapt 14% to a new record high. It's now triggered the 20% profit target from a 218.59 buy point of a flat base cleared last month. The chip gear maker also beat quarterly estimates and raised its current-quarter guidance past Street views.
STMicroelectronics (STM) vaulted 10% to a 15-month high in double normal trade. The Switzerland-based chipmaker's Q3 results beat Wall Street targets. It also boosted its Q4 sales guidance. Shares are extended from a 19.78 cup base entry, according to MarketSmith chart analysis.
Several software stocks led the upside in the IBD 50. Paycom Software (PAYC) gained nearly 5%, while SS&C Technologies (SSNC), Paylocity (PCTY), Adobe (ADBE) and Fortinet (FTNT) added more than 3% each.
Of those, Paylocity looks the best on a technical basis. It's holding above its 200-day line as it works on a base with a 112.56 buy point. But most of its base is below the 50-day line. The cloud-based payroll software maker holds a 97 Composite Rating, 99 Earnings Per Share Rating and 90 Relative Strength Rating.
Other IBD 50 outperformers included New Oriental Education (EDU) and Kirkland Lake Gold (KL), up a respective 7% and 5%.
The Innovator IBD 50 ETF (FFTY) advanced 1.6%. It's been trading below its 50-day line since early August.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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