Dow Jones Rallies As Snap, Twitter Jump On Earnings Beats; Chinese Stocks Plunge On Crackdown

The Dow Jones Industrial Average briefly rallied 200 points Friday, even as chip giant Intel tumbled on earnings. Social media giants Snap and Twitter jumped on earnings beats. Chinese education stocks New Oriental Education and TAL Education crashed on a Chinese government crackdown.


Among Dow Jones leaders, Apple (AAPL) rallied 0.6% Friday, while Microsoft (MSFT) moved up 0.5% in today’s stock market. American Express (AXP) and Intel (INTC) reported earnings ahead of Friday’s open.

Tesla (TSLA) threatened to extend a losing streak to three sessions, falling 1% Friday morning. Social media giants Snap (SNAP) and Twitter (TWTR) jumped after reporting earnings late Thursday.

Among the top stocks to buy and watch, Advanced Micro Devices (AMD), BioNTech (BNTX) and XPEL (XPEL) are in or near buy zones.

Microsoft and Tesla are IBD Leaderboard stocks. BioNTech is an IBD SwingTrader stock. AMD was featured in this week’s Stocks Near A Buy Zone column, while XPEL was Thursday’s IBD Stock Of The Day.

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The Dow Jones Industrial Average rallied 0.4% Friday, while the S&P 500 moved up 0.4%. The tech-heavy Nasdaq followed up with a 0.2% gain in morning trade.

Among exchange traded funds, the Innovator IBD 50 (FFTY) jumped 1.1% Friday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) moved up 0.4%. Meanwhile, the SPDR S&P 500 ETF (SPY) gained 0.4%.

Stock Market Rebounds

The S&P 500 looked to extend a win streak to four sessions Friday, as it continues to rebound from its key 50-day line. The Nasdaq also looked to make four straight up days and is closing in on record highs. The Dow Jones industrials are again eyeing the 35,000 level.

Thursday’s Big Picture column commented, “Despite this week’s rebound, the stock market remains in an uptrend under pressure, as the distribution-day count remains elevated. The S&P 500 now has six distribution days. The June 16 distribution day was removed from the count due to time. Distribution days older than 25 sessions are considered no longer relevant to the current market action. The Nasdaq’s count remains at four.

For more stock market commentary, check out IBD’s The Big Picture.

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Dow Jones Earnings: American Express, Intel

Dow Jones stocks American Express and Intel reported earnings ahead of Friday’s open.

American Express crushed Q2 earnings estimates early Friday, as payment volumes in the U.S. pick up amid an economic recovery. AXP stock advanced 4% to hit a new high.

Chip giant Intel topped Q2 earnings and sales estimates, but the stock tumbled 5% Friday morning. Shares are more than 20% off their 52-week high and below their 50-day moving average.

Stock Market Earnings: Snap, Twitter

Snap soared over 22% Friday morning after the Snapchat parent easily beat the Street’s earnings and sales targets. Shares broke out past a cup with handle’s 70.34 buy point.

Twitter stock jumped as much as 5% before paring gains to 1.5% in Friday trade following the company’s strong Q2 results. The company also issued better-than-expected Q3 sales guidance. The stock is trying to break out past a double bottom with handle’s 72.17 entry.

Chinese Education Stocks Crash

New Oriental Education (EDU) and TAL Education (TAL) crashed 58% and 57%, respectively, following reports of a government crackdown that includes bans on foreign investment, according to CNBC.

Chinese giants Alibaba (BABA), Baidu (BIDU), and (JD) weren’t spared from the heavy selling. Alibaba stock sold off 4.5%. Baidu dropped 5.5%, while lost over 5%.

Stocks To Buy And Watch: AMD, BioNTech, XPEL

Chip giant Advanced Micro Devices is tracing a cup-with-handle base that shows a 95.54 buy point, according to IBD MarketSmith chart analysis. Shares lost 0.4% Friday, on pace to snap a four-day win streak.

AMD stock was featured in this week’s Stocks Near A Buy Zone column.

According to the IBD Stock Checkup, AMD stock shows a solid 96 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.

IBD Leaderboard stock BioNTech surged out of buy range Thursday amid the day’s 8.2% advance. The stock extended past a 252.88 buy point in a consolidation base. Per Leaderboard analysis, BioNTech cleared a trend line following a pullback near 222, offering a new entry at a similar price level as the 50-day line. Shares tacked on 1.3% Friday morning.

BioNTech is also an IBD SwingTrader stock.

Thursday’s IBD Stock Of The Day, XPEL, broke out Thursday past a 94.31 buy point and is barely extended past the 5% buy range that tops out at 99.03. Shares rallied 2% Friday morning. Bullishly, the stock’s RS line is at new highs.

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Tesla Stock

Tesla stock fell 1% Friday, on pace to extend a losing streak to three sessions. The electric-vehicle giant is again trying to find support around its long-term 200-day moving average. Another strong show of support at these levels would be bullish for the stock’s prospects.

On the downside, Tesla’s RS line remains far from its old highs. A lagging RS line is a sign of an underperforming stock relative to the broad market. Tesla stock remains nearly 30% off its all-time high, even as the major indexes reached record highs last week.

On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple rose 0.6% Friday, on pace to add to Thursday’s 1% gain. The stock hit an all-time high last week at 150.

Apple stock is back out of the 5% buy zone from a 137.17 entry in a cup base, according to IBD MarketSmith chart analysis.

Microsoft continues to trade solidly above a cup base’s 263.29 buy point. Shares rose 0.5% Friday to hit another all-time high. The stock is extended above the 5% buy zone, which goes up to 276.45.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


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