The Dow Jones Industrial Average fought its way off session lows as the rally resumed. Meme stock Bed Bath & Beyond (BBBY) collapsed amid an investor pullout with the likes of AMC Entertainment (AMC) also down sharply. Warren Buffett stock Apple (AAPL) is eyeing a new buy point.
Meanwhile a trio of stocks were making bullish moves despite the mixed action. ON Semiconductor (ON) moved into a buy zone while Repligen (REGN) and Double Verify (DV) are nearing entries.
X
Volume was down on the Nasdaq and the New York Stock Exchange vs. the same time Wednesday.
The yield on the benchmark 10-year Treasury note fell two basis points to 2.88%. West Texas Intermediate crude oil rose almost 3% to more than $90 per barrel.
Nasdaq Gains As Growth Stocks Shine
The Nasdaq was faring best out of the major indexes as it gained 0.4%. Marvell Technology (MRVL) impressed here with a gain of over 4%.
The S&P 500 was also up about 0.3%. Apache parent APA (APA) was doing well here as it jumped almost 8%.
The S&P 500 sectors were mixed. Energy and technology fared best. Health and real estate were the worst laggards.
Small caps were managing to grind out a minor gain, with the Russell 2000 index up 0.4%.
The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, rose about 1%.
Dow Jones Today: Cisco Stock Jumps On Outlook
The Dow Jones Industrial Average was fought its way back from lows, rising fractionally.
Cisco (CSCO) was shining brightest on the Dow Jones today. It was up nearly 6% on earnings.
It was also boosted after management touted strong demand. The firm guided for adjusted earnings per share of $3.49 to $3.56 and 4% to 6% revenue growth in fiscal 2023. This was better than analysts expected.
On the downside, Walgreen Boots Alliance (WBA) was the worst laggard as it surrendered almost 6%.
BBBY Stock Craters On Investor Move
Meme stock Bed Bath And Beyond was plunging Thursday. While off lows it remained down nearly 22% in massive volume.
It had enjoyed a recent run up but was getting hammered after GameStop (GME) Chairman Ryan Cohen’s RC Ventures disclosed a plan to sell shares.
It comes after it surged as much as 560% from a July 27 low of 4.54 to Wednesday’s high at 30.00.
While investor Jake Freeman turned $25 million into $130 million in the BBBY trade, Oanda senior market analyst Ed Moya said meme stocks are dangerous.
“Meme stock mania has evolved to an aggressive pump and dump trade, which will spell trouble for the casual investor hoping for some stock to go to the moon,” he said in a note to clients. “Arguments to hold stocks like GameStop and AMC for the long-term will not hold water. Meme stocks will struggle for substantial trends as most of the fundamentals remain weak for these companies and the retail trader is weakening as the economy crawls toward a recession.”
AMC stock was down almost 8% while GameStop, the original meme stock, fell about 7%.
Warren Buffett Plays: Apple Stock Eyes Entry
When people think of Warren Buffett stocks they often think of value plays. But his company Berkshire Hathaway (BRKB) has built a massive stake in Dow Jones stock Apple.
The tech giant is now closing in on an awkward double-bottom base with a 179.71 entry. It also passed an aggressive trendline entry.
Given its strong recent performance, reflected in its mighty relative strength line, investors may also look to see if it can form a handle form here.
Analysts expect the tech giant to unveil the iPhone 14 series smartphones and other gadgets at an event in September.
Apple has reportedly told assemblers to make 90 million of its newest handsets, on par with last year’s launch period. It is hoping its affluent customer base will sustain iPhone sales despite the rough economic climate.
It is expected to introduce four versions of its iPhone 14, which likely will be incremental upgrades to the current flagship.
Rally Won’t Do This; BBBY’s ‘Reversion To The Meme’
Outside Dow Jones: These 3 Stocks Make Bullish Moves
With the market in a confirmed uptrend now is the time to be looking for stocks in or near buy points.
Chip stock ON Semiconductor, also known as Onsemi, has moved back into its buy zone above a consolidation pattern entry point. This offers another bit of the cherry for investors after it recently got extended past a double-bottom base.
The stock has shot about 25% above its 50-day moving average, which may give some investors pause for thought. Nevertheless, IBD Stock Checkup shows ON Semiconductor has seen earnings grow by an average of 191% over the past three quarters.
ON stock has seen fund ownership rise in seven consecutive quarters. In total, 71% of all stock is held by funds, according to MarketSmith data.
Repligen has just forged a new handle and will now look to close in on a 262.36 buy point. The relative strength line has taken a pause from recent strong advances to form the entry.
It is continuing to hold clear of the 21-day exponential moving average, which underlines its strong recent performance. Big Money has been getting behind the stock of late, with its Accumulation/Distribution Rating a strong B+. The maker of bioprocessing tools helps drugmakers develop their products.
Finally, Double Verify is worth watching closely as it crafts a bottoming base. It looks to be forming a new handle after retaking its 200-day moving average. The buy point here is 28.07.
The software firm offers platforms to help advertisers analyze the effectiveness of their ad spending and campaigns. Strong performance has netted it an IBD Composite Rating of 87 out of 99.
Its bullish behavior has also won DV stock a place on the Leaderboard Watchlist.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
YOU MIGHT ALSO LIKE:
Stock Market Forecast For Next Six Months Holds Big Risks For Dow Jones — But Hope Too
MarketSmith: Research, Charts, Data And Coaching All In One Place
These Are The 5 Best Stocks To Buy And Watch Now
This Is The Ultimate Warren Buffett Stock, But Should You Buy It?
Source: https://www.investors.com/market-trend/stock-market-today/dow-jones-flat-rally-resumes-bbby-stock-sinks-on-this-move-warren-buffett-stock-apple-stock-eyes-buy-zone/?src=A00220&yptr=yahoo