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Stocks Gain As Record Highs Loom; Top Growth Stock Breaks Out

The stock market held solid gains in morning trade Tuesday as the tech-heavy Nasdaq composite looked to make it six straight up days. Leaderboard stock Etsy (ETSY) soared to a potential breakout while blue-chip stock Disney (DIS) was in buy range ahead of its earnings results after the market close. (For updates on this story and other market coverage, visit the Stock Market Today.)

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The Nasdaq moved up 0.3% and is nearing a fresh record high. The Dow Jones industrial average also rose 0.6%, while the S&P 500 gained 0.4%. The S&P 500 is also nearing a record high.

Among the Dow stocks, Disney traded 0.5% higher and is still in the 5% buy range from a flat base’s 113.29 entry. The company will report its fiscal-Q3 results after the close. Analysts expect the company’s EPS to grow 25% to $1.97 on revenue of $15.49 billion.

Among companies reporting earnings, handmade goods retailer Etsy soared 10% to a breakout above a flat base’s 45.98 buy point, according to MarketSmith chart analysis. Shares rose as much as 19% before trimming gains. The stock’s breakaway gap offers a chance to buy the stock, but keep in mind that it is a later-stage base.

Weight Watchers (WTW) lost 15% after its Q2 revenue figures missed the Street’s targets and subscriber growth slowed. The stock fell further under its 50-day line, a key support level, in heavy volume.

Expeditors International (EXPD) stumbled 7% after its Q2 earnings results early Tuesday. The stock ended Monday just below a 78.26 cup-shaped base entry, underscoring the importance of being patient and waiting for the breakout before purchasing a stock. Shares fell through their 50-day line.

Inside The IBD 50

Among the top growth stocks, graphics-chip maker Nvidia (NVDA) moved up over 1% and is on pace to add to its five-day win streak. Shares regained their 50-day line and are nearing a 269.30 flat-base buy point. The top chip stock will report earnings next week.

On the downside, Toronto-based outerwear retailer Canada Goose (GOOS) declined more than 1%, as it tested its 50-day line. The luxury parka maker will report its fiscal-Q1 results after the market close Thursday. The stock is over 50% above a cup with handle’s 36.76 buy point.

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