The Nasdaq composite edged 0.2% higher after rising 0.9% early; the S&P 500 added 0.3% and the Dow Jones industrial average outperformed, rising 0.6%. Volume on the Nasdaq was tracking slightly higher than Monday. NYSE volume fell a bit.
Nike (NKE), Johnson & Johnson (JNJ) and UnitedHealth Group (UNH) outperformed in the Dow with gains of around 2%.
Inside the IBD 50, Interactive Brokers (IBKR), Micron Technology (MU), Stamps.com (STMP) and Canada Goose (GOOS) showed gains of 2% or more. Stamps.com is above the 50-day moving average as it works on a cup-with-handle base with a 215.86 buy point.
Among the FANG stocks, Netflix (NFLX) was the best performer, up 0.4%, but it’s still struggling for support at the 50-day moving average. Alphabet lost ground again after giving up support at the 20o-day moving average during Monday’s sell-off. Shares were down 0.6%.
Spotify Rises Sharply In Debut
Shares of Spotify (SPOT) opened at 165.90, well above a reference price of 132. The company opted to bypass underwriters with a direct listing as opposed to an initial public offering. Spotify is a big player in music streaming business, but it’s a crowded industry with competition from the likes of Apple (AAPL), Amazon.com (AMZN), Alphabet (GOOGL) and Pandora (P).
Other gainers included Tesla (TSLA). Shares picked up 4% as Wall Street mulled Q1 delivery data. Signs of institutional selling, basically higher-volume declines, started to appear months ago in the electric car maker after shares hit an intraday high of 389.61 in September.
In related news, General Motors (GM) and Fiat Chrysler (FCAU) reported strong sales data for March. Shares of GM rose 2.5%, while Fiat Chrysler jumped nearly 9%.
Leaderboard name Lululemon Athletica (LULU) rebounded after Monday’s reversal. Shares outperformed, rising more than 1%, on the heels of a strong earnings report last week.
