Stocks opened higher on Wednesday on solid GDP data. But, profit-taking drove the market into negative territory. However, after the Fed reaffirmed its intention to keep the rates low, buyers came back in again!
Social networking stocks were strong today, after TWTR delivered strong earnings. TWTR popped +20% and it looks like it’ll go higher in the coming days. Its nearest resistance is at around $50. YELP and LNKD also traded up, adding +8.81% and +4.2%, respectively. After the market, YELP reported a 4-cent-per-share profit for Q2, versus the concensus of a 3 cents loss! This is YELP’s first profittable quarter after its IPO. In after-hours trading, YELP initially jumped to $82, but, ended the evening session slightly lower. I think this is just traders’ knee-jerk reaction (and/or manipulation). YELP’s quarterly report is stellar, including a strong guidance! YELP should go back to test $100 before the end of the year.
NFLX managed to bounce +2.38%. X also vaulted nearly +20% after the company said the market has “bounced back quite well,” especially demand for flat-rolled steel. On the downside, HUM dropped 5.63% after releasing earnings with rising costs. UNH traded down 1.57%. WLP was also down more than 3% in the morning, but, managed to close flat.
The Dow was down 31.75 points; SPX added +0.12 point; Nasdaq gained +20.2 points:
SOXX (semiconductor) bounced +1.01%. BTK (biotech) moved higher again. FDN (internet) added +1.52%.
SPX added +0.12 point to close at 1970.07. It closed right at its 30-day MA. The MACD went down.
Nasdaq gained +20.2 points to close at 4462.9. Its daily MAs were slightly up.
The market was mixed today. Although SPX closed flat, it is starting to show weakness. The Dow closed lower. However, techs were still strong. Besides, internet stocks, software was quite strong as well. Both RHT and VMW broke out higher! In my Market Forecast this weekend, I thought we’d see more consolidation. Chinese stocks continued to be strong. Shanghai’s stock index (SSEC) ramped up higher on Thursday again! SINA and SOHU have been making a base for a long time now. I think these two are ready to make a move up!
Good night and HappyTrading! ™