Major indexes showed soft yet light action in late-afternoon trade but iPhone marketer Apple helped the Nasdaq composite edged higher in stocks today. Meanwhile, Veeva Systems and Nanometrics broke out.
Apple (AAPL), the giant in consumer electronics, rushed more than 1.1% higher and made new highs in solid turnover that was running slightly above normal levels. At 210.95, Apple is now 8.5% past a 194.30 proper buy point in a new base on base.
Since Apple is now beyond the 5% buy zone, shares are too extended to buy.
Apple is a member of IBD Leaderboard. Meanwhile, one of Apple’s fellow Leaderboard stocks exited the Leaders list due to weak action near the 50-day and 10-week moving averages.
At around 3:30pm ET, the Nasdaq composite, up the prior two weeks by a total of around 1.3%, edged 0.1% lower. Losers outmatched winners on that exchange by a more than 9-5 margin.
The S&P 500 and the Dow Jones industrial average saw modest losses in the range of 0.3% to 0.4%. The S&P SmallCap 600 fell nearly 0.4% as investors continued close watch of financial markets in Turkey.
Two New Breakouts
Among other top-rated growth stocks, Veeva Systems (VEEV) gained nearly 1% to 84.31 and is trying to break out from a seven-week flat base with an 85.10 entry. The base shows elements of a double bottom as well.
Nanometrics (NANO), a member of the IBD 50, rallied more than 5% to 44.03 in volume running nearly triple its 50-day average. The semiconductor inspection systems firm is clearing a new buy point of 43.10 from a cup-with-handle base. The pattern also can be interpreted as a cup base with a 44.27 buy point.
The 5% buy zone for Nanometrics goes up to 46.48. Read this Investor’s Corner for more on the concept of the proper buy zone after a stock clears a breakout point.
The Milpitas, Calif., firm is enjoying fine growth in recent quarters. Earnings dropped 33% in Q3 of 2017, due in part to a very tough year-over-year comparison. But in the past three quarters, Nanometrics increased its earnings per share by 61%, 253% and 137% on revenue gains of 32%, 39% and 38%.
According to IBD Stock Checkup, the small-cap firm boasts a top-notch 97 Composite Rating, No. 1 within IBD’s Electronics-Semiconductor Equipment industry group. Other industry compatriots with high Composite ratings include Cabot Microelectronics (CCMP), Orbotech (ORBK), Xcerra (XCRA) and Electro Scientific Industries (ESIO).
New Base For This Semiconductor Stock
Nvidia (NVDA), a key player in chip sets for the AI, datacenter and video game console and PC markets, also outperformed the major indexes. The large-cap leader rose 0.8% to 256.57 and remains above the key 50-day moving average.
Nvidia is crafting a flat base, but it is a riskier late-stage formation.
Among retailers, luxury home furnishings firm RH (RH) jumped more than 5% to a six-week high. RH is forming a base that shows a 164.59 buy point.
RH is up 75% since Jan. 1. The Street sees RH’s earnings soaring 169% to $1.75 a share in the fiscal second quarter ended in July.
Earnings at RH catapulted higher by 48%, 420%, 149% and 2,560% in the past four quarters. Weak numbers in year-ago periods helped boost those gains. However, sales have grown in four of the past five quarters, averaging 11%.
Stocks On The Downside
Dycom (DY) led a sell-off within the telecom infrastructure industry group, which fell more than 4% and marked the biggest drop among 197 IBD industry groups. The cable deployment firm gapped down more than 23% to hit a session low of 67.15 as volume soared to 6.3 million shares.
Dycom reported a 7% drop in second-quarter revenue, stretching a streak of falling sales on a year-over-year basis to four quarters.
Dycom notched an earlier sell signal when it crashed below its 50-day moving average in heavy trade on May 22.
Kirkland Lake Gold (KL) slumped more than 7% as gold futures slid more than 1% lower. The Toronto-based operator of golf mines undercut its 50-day line for the first time since breaking out of a cup with handle at 16.43 on April 11.
Such a big drop beneath the key support level marks a potential change in the stock’s character.
Other Financial Markets
With a lack of clarity on the Turkish financial situation, investors for the most part held on to their U.S. Treasury securities.
The yield on the benchmark 10-year note held at 2.87%. On Aug. 1, the yield stood at 3%.
WTI crude oil futures sank 0.4% to $67.35 a barrel as the euro failed to get any upside traction after recent heavy selling. The key currency for the European Union traded at right around $1.1400.
