The stock market rallied squarely higher early Wednesday after the Trump administration eased some of its trade threats against China. Top FANG stock Netflix (NFLX) looked to recover from Monday’s heavy loss with two days of straight gains early Wednesday.
The Dow Jones industrial average led the action with a 1% jump, while the S&P 500 rose about 0.7%. The tech-heavy Nasdaq followed up with a 0.5% gain.
Among the Dow stocks, Apple (AAPL) rose 1%, as its rebound from the 50-day line continued. Shares rose for a second straight day Wednesday. The stock is also about 4% above a 179.04 double-bottom entry.
On the downside, McDonald’s (MCD) declined almost 1%, as it fell further below its 50- and 200-day moving average lines.
Among companies reporting earnings, restaurant chain Sonic Drive-In (SONC) faltered 8% after its revenue and same-store sales missed estimates late Tuesday. A gain from a 29.72 buy point topped out at 21%. Amid today’s fall, shares are only up about 11%.
Edwards Lifesciences (EW) fell about 0.5% after Bernstein initiated coverage on the medical stock with a market perform rating and a 165 price target — about a 10% premium to Tuesday’s closing price. Shares are back in buy range from a 143.32 flat-base entry, while the relative strength line has been holding up relatively well amid the recent market turmoil.
Among the FANG stocks, Amazon.com (AMZN) and Netflix (NFLX) remained steady performers, rising nearly 1% and 2.2%, respectively. Bank of America maintained its buy rating on Netflix, and hoisted its price target to 460, from 352. The note projected that Netflix would become a “dominant streaming player in virtually all markets given its content scale,” reaching 360 million subscribers by 2030.
Netflix shares have mostly recovered from Monday’s 6.5% decline over the last two trading sessions. On Tuesday, the stock rose nearly 4%.
Inside The IBD 50
Among the top growth stocks, Twitter (TWTR) advanced over 1% and is trading about 5% off its all-time high. Shares are still well-extended from a 33.88 cup-with-handle entry.
On the downside, Baozun (BZUN) dropped over 4%. Shares are looking for support at their 50-day line. A gain from a 52.43 buy point topped out at 28%. After the recent volatility, shares are up just 3%.
