The stock market was mildly lower in morning trade Wednesday, as the major indexes looked set to snap recent win streaks. China retaliated with pledges of new tariffs on $16 billion worth of U.S. goods. Top growth stock Michael Kors (KORS) is breaking out above a potential entry, while blue-chip stock Disney (DIS) was still in buy range after its disappointing earnings results. (For updates on this story and other market coverage, visit the Stock Market Today.)
All three major indexes were quietly lower in early trade. The tech-heavy Nasdaq and S&P 500 moved down less than 0.1% apiece, while the Dow Jones industrial average fell 0.2%.
Among the Dow stocks, Disney traded down 1% and is in the 5% buy range from a flat base’s 113.29 entry. The company reported disappointing fiscal-Q3 results late Tuesday. Meanwhile, CEO Bob Iger discussed the upcoming Disney-centric streaming platform, which will be priced substantially below Netflix (NFLX).
Meanwhile, Leaderboard stock Apple (AAPL) trimmed early losses to trade flat and remains out of buy range of a 194.30 flat-base entry. The 5% buy range tops out at 204.02, but it’s best to buy as close to the buy point as possible.
Among companies reporting earnings, IBD 50 stock Jazz Pharmaceuticals (JAZZ) fell 3% on weaker-than-expected full-year profit guidance. The stock is forming a flat base with a 184.10 buy point. Shares were testing their 50-day line in early trade.
Fellow IBD 50 name Supernus Pharmaceuticals (SUPN) reversed from early gains to fall over 6% after its Q2 earnings and sales topped the Street’s targets. Shares found resistance at their 50-day line within a basing pattern that began in early July.
Electric automaker Tesla (TSLA) reversed from early losses to rise 0.6% Wednesday. Shares are back above a 373.83 cup-shaped base entry. On Tuesday, the stock surged 11% amid talk from CEO Elon Musk of taking the company private at $420 per share.
Inside The IBD 50
Among the top growth stocks, Michael Kors (KORS) advanced almost 7% after its better-than-expected fiscal-Q1 results. The stock is right at a 70.10 buy point. The 70 price marks a resistance level that has given the stock trouble since early February.
On the downside, Zebra Technologies (ZBRA) declined nearly 4% to trade just above a 161.82 cup-shaped base entry. The stock soared to a breakout Tuesday after its strong earnings results.
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