Nasdaq Dips As Apple Tests Support; Oil Jumps, Stitch Fix Soars

Validea Peter Lynch Strategy Daily Upgrade Report - 12/9/2017

A 0.3% decline for the Nasdaq composite by the close Tuesday didn’t look too bad on the surface, but semiconductor stocks got hit with more selling, particularly Apple ( AAPL ) suppliers, after several analysts expressed concern about flagging demand for the iPhone X.

[ibd-display-video id=3046116 width=50 float=left autostart=true] Apple paid a visit to the 50-day moving average, falling 2.5% to 170.57. Headed into Tuesday, it had been trading tightly near highs, working on a flat base with a 176.34 buy point.

The S&P 500 eased 0.1% and the Dow Jones industrial average fell fractionally. The Russell 2000 small-cap index eked out a modest gain. Preliminary data showed volume on the NYSE and Nasdaq coming in lower than Friday’s light levels.

Chip bellwethers Micron Technology ( MU ), Applied Materials ( AMAT ), Skyworks ( SWKS ) and KLA-Tencor ( KLAC ) lagged badly in the Nasdaq 100, with losses of around 2% or more. The Philadelphia semiconductor index gapped  below the 50-day moving average, falling 1%.

In the stock market today , retail stocks were among the bright spots after data from Mastercard said U.S. holiday sales were up 4.9% from last year. E-commerce sales jumped 18%. Heavy-volume gainers  included IBD 50 name Five Below (FIVE), up 3% and Children’s Place (PLCE), up nearly 2%.

Wal-Mart (WMT) was a top percentage gainer in the Dow, rising 1% to 99.16. It’s working on a flat base with a 100.23 buy point.

Recent IPO Stitch Fix (FIX) soared to a new high, rising about 18%, after a volatile week last week. Shares slumped nearly 10% Wednesday after the company reported earnings, but analysts quickly came to Stitch Fix’s defense.

Floor & Decor (FND) added 1% to 45.35 as it works on a cup-with-handle base with a 46.34 buy point.

Meanwhile, oil and gas names continued their recent string of outperformance as U.S. crude oil futures for February delivery settled at $59.97 a barrel, up 2.6%. The move was fueled by news of a pipeline blast in Libya as well as comments from Saudi Arabia that said it expects oil revenue to rise 80% by 2023, according to Bloomberg.

Oil and gas producer Centennial Resource Development (CDEV) looked poised for its fourth straight gain, rising nearly 3% to 20.68. It’s back above the 50-day moving average as it works on a short consolidation with a 22.21 buy point. EOG Resources (EOG), meanwhile, broke out straight up off the bottom from a cup-shaped base with a 108.05 buy point. Shares rose 2% to 109.41.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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