Early Rebound Fades; Retail Stocks Under Pressure, But Alibaba Jumps | Stock News & Stock Market Analysis

The major market indexes fell across the board Thursday morning, even as U.S. weekly jobless claims came in less than expected at 232,000 vs. the 240,000 estimate.

The tech-heavy Nasdaq fared the worst, falling 0.9%. The Dow Jones industrial average dropped 0.5% after earnings disappointments from two components. The S&P 500 moved 0.6% lower.

XAutoplay: On | Off Among the Dow industrials, McDonald’s (MCD) edged up just almost 0.1%. The stock is just off its 52-week high after finding support at its 50-day line last week.

On the downside, Cisco Systems  (CSCO) plunged nearly 4%, as its fiscal-Q4 earnings met targets late Wednesday. Thursday’s action puts the stock back under its 50-day line, as the stock works to build a floor in a three-month consolidation.

Wal-Mart’s (WMT) dropped 2% after its Q2 results beat the Street’s views, but issued a cautious earnings outlook.

Retail behemoth Alibaba (BABA) was the star among leading stocks in the stock market today. The top Chinese stock jumped over 3% after the company reported strong earnings results. Shares found solid support at their 10-week line last Friday and are now about 60% above a 104.67 cup-with-handle entry.

Meanwhile, rival JD.com (JD) declined almost 4%, extending a losing streak to seven trading days. The retailer will look for more support at its 50-day line where it has found buying demand several times before.

Among other leading stocks, Tesla (TSLA) dropped 1.3%, as the stocks etches a handle onto its cup-shaped base. The potential handle entry comes in at 370.10.

Chip leader Applied Materials (AMAT) fell 1.2% ahead of its fiscal-Q3 earnings results after the market close. Analysts expect the chip-gear maker to earn 83 cents per share on revenues amounting to $3.66 billion. The stock is forming a cup-with-handle base with a 47.69 buy point.

Retailers were once again the target of sellers, using Wal-Mart’s weak guidance as a reason. Meanwhile, Victoria’s Secret-parent L Brands (LB) declined over 8% to five-year lows after the company cut its full-year earnings outlook late Thursday.

Within the IBD 50, Centene (CNC) rose just over 2%, as it continues to rebound from its 50-day line. The stock remains extended from a 73.33 cup-with-handle entry.

On the downside, Invisalign-maker Align Technology (ALGN) declined over 3%, but remains well-extended from a 102.10 cup-with-handle buy point.


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