Strong earnings continued to keep the market afloat. The market has been on a 2-day run after AAPL’s blowout earnings on Tuesday after the market. Last night, CRUS reported a strong quarter, sending its shares up +18.62% today. EQIX shares were also on fire, up +13.25%, after another outstanding quarter. REGN jumped +9%, reporting first-ever profittable quarter and lifting its guidance.
The market kept gliding up, with SPX ending just shy of 1400.
After the market, AMZN vaulted $27, or almost +14%, after reporting its own blowout quarter (helped by sales from its Kindle), rivaling that from AAPL. EXPE popped a whopping +18.73%, topping estimates. PCLN also jumped in after-hours. SWKS gained +5% after a healthy report. WDC also had a good quarter; its shares first popped after the report, but, was then traded lower, down 8.5%. FIO also experienced similar movement; after beating the estimates, its shares first went up, then settled down 7.35%. The trading in after-hours on WDC and FIO merely pulled these two stocks back into the neutral zone. I suspect that buyers can still come in tomorrow. DECK shares tumbled 18.66% after giving a dismal report. DECK shares have broken support with more room to go lower. People may be tempted to play a bounce on DECK, but, I’d wait a while. DECK has support at $55, but, could test $50. I’m taking DECK off of my watchlist for now.
The Dow was up +113.9 points; SPX added +9.29 points; Nasdaq gained +20.98 points:
SOXX (semiconductors) bounced +2.17%. BTK (biotechs) added +1.16%. XLF (financials) gained +0.85%. IGV (software) was up +2.25%.
SPX added +9.29 points to close at 1399.98. Its daily MAs and MACD turned up.
Nasdaq gained +20.98 points to close at 3050.61. It closed right at its 30-day MA. Its MACD was higher.
This market has spent most of this April month in a very volatile environment. Just this week, the market almost broke down on Monday and Tuesday. But, it shot right back up after AAPL’s earnings. Now, we’re looking at a breakout! VIX has sunken back below 17. This bodes well for a strong month of May. The Dow has already turned bullish, which could mean now the mid- and small-caps can now follow. This also explains many of the double-digit rises after earnings.
After the market, S&P downgraded Spain and created some selling pressure on the market futures. This could give the market a nice "excuse" to take a breathe, after rallying 40 points on SPX. Be patient tomorrow. Facebook IPO is also coming in May. This market should resume higher soon.
Good night and HappyTrading! ™