The stock market fell heavily early Thursday — but quickly trimmed its losses — amid more trade worries. Late Wednesday, the Trump administration signaled its willingness to increase the proposed tariffs on $200 billion of Chinese goods from 10% to 25%. China responded that it was prepared to retaliate. Meanwhile, electric auto maker Tesla (TSLA) and payment processor Square (SQ) advanced after earnings results.
The tech-heavy Nasdaq Composite rose 0.2%, after recovering from its early 0.6% slide. The S&P 500 dropped 0.25%. The Dow Jones industrial average declined 0.5%.
Among companies reporting earnings, Tesla surged 10% despite a deepening quarterly loss, as investors focused on better-than-expected revenue and Model 3 production. The gain sent the stock above its 50- and 200-day moving average lines, potentially shaping the right side of a new base structure.
Mobile payments stock Square reversed from early losses to rise over 6%, leaving it extended after a quick rebound from its 50-day support level. Late Wednesday, Square beat the Street’s top- and bottom-line estimates but forecast lighter-than expected-profits in the current quarter.
Cybersecurity stock Fortinet (FTNT) jumped 11% to notch a new high after the company reported strong Q2 earnings results. Shares found support at their 50-day line for the fourth time since a breakout above a double bottom’s 39.61 entry last October, according to MarketSmith chart analysis.
Among energy stocks, EOG Resources (EOG) will report after the market close. Analysts expect the oil producer to earn $1.25 per share on revenue of $3.91 billion. Shares are trading below a 128.06 cup-with-handle buy point after a recent breakout. The stock is holding above the 50-day line amid a three-day losing streak.
Inside The IBD 50
Among the top growth stocks, Leaderboard stock Paycom Software (PAYC) followed up Wednesday’s more-than-18% advance with a 3% rise to hit another new high. The business software maker broke out past a 115.64 double-bottom entry and quickly moved out of buy range after it reported strong Q2 results.
On the downside, Epam Systems (EPAM) plunged 11% on its Q2 results early Thursday. Shares ended Wednesday’s trading session just below a 131.85 flat-base buy point.
