Stocks added to last week's gains Monday with the Nasdaq leading the key market indexes as Apple (AAPL), ARM Holdings (ARMH) and Tesla (TSLA) scored big gains. But Netflix (NFLX) fell sharply after hours.
The Nasdaq rose 0.5%, the S&P 500 added 0.2% and the Dow Jones industrial average edged 0.1% higher. Volume was slightly lower across the board vs. Friday, according to preliminary data.
Netflix fell sharply in extended trading after the subscription streaming service reported Q2 earnings that beat, but revenue that missed, forecasts. It earned 9 cents on nearly $2 billion in sales. Views were for 2 cents on $2.11 billion. Netflix added 1.7 million subscribers during the quarter, well below the 2.5 million expected.
Automakers, discount retailers and chip stocks outperformed in the stock market today, while toymakers, nonalcoholic beverage and truck stocks lagged.
ARM Holdings gapped up and soared 41% to an all-time high after Japan's SoftBank (SFTBY) said it would buy the chipmaker for $32 billion. ARM makes chips for Apple's iPhone and other mobile devices.
Apple, up 1%, was one of the Dow's biggest winners. Shares climbed past 100 intraday but again met resistance there and closed slightly below. The stock has run into upward resistance near that level since late May.
Tesla rose 3% to end a four-session slide. The stock has regained both its long-term support lines, but the 200-day moving average is now above its 50-day line, a bearish sign. The electric car maker hired Chester Chipperfield, a former Apple executive, as its global creative director.
Discount retailer Five Below (FIVE) and networking gear maker Gigamon (GIMO) led IBD 50 stocks with 5% jumps each. Needham & Co. raised its price target on Gigamon to 50 from 40. Shares are near record highs and in profit-taking range from a 34.24 cup-with-handle buy point.
On the downside, Hasbro (HAS) slumped 7% to a three-month low, gapping down below its 50-day line in speedy trade. The toymaker reported Q2 results that topped views on both the top and bottom lines, thanks to products based on Disney's (DIS) "Star Wars" and "Frozen" blockbuster hits. But some analysts noted concerns about boy toys' sales.
Monster Beverage (MNST) sank nearly 4% in above-average volume but managed to close above its 50-day line after breaching it during the session. Shares closed just above a 154.06 alternate buy point cleared last month. Wells Fargo downgraded the energy drinks maker to market perform from outperform.
In economic news, the National Association of Home Builders' housing market index for July came in at 59, below views for 61 and June's 60 reading. Housing starts data for June will be out Tuesday morning.
