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.)
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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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