Apple Breakout Fading As Market Reverses Lower – Investor's Business Daily

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The major market indexes turned generally negative. The Dow Jones industrial average clung to a 0.1% gain thanks to Apple (AAPL)  after earlier surpassing the 22,000 price level for the first time. The tech-heavy Nasdaq reversed to trade down 0.6% and the S&P 500 dipped 0.35%.

XAutoplay: On | Off Among the Dow industrials, Apple (AAPL) handily beat earnings and sales forecasts late Tuesday, while raising its guidance for Q4. Shares were up 4.4% to 156.71, just below a 156.75 flat-base buy point after setting an intraday peak of 159.75.

On the downside, Walt Disney (DIS) declined 1.9%. Shares are building the right side of a potential base.

FANG stocks saw more selling pressure early Wednesday. Netflix (NFLX) dropped 2%, while Facebook (FB) and Google-parent Alphabet (GOOGL) 1.4% and 1.2%, respectively. Amazon.com (AMZN) edged 0.8% lower.

Netflix and Facebook are trading mostly sideways after their respective earnings-related gap ups in recent weeks. Meanwhile, Amazon is struggling for support at the 50-day line.

Among other companies reporting earnings, two highfliers were breaking down in the stock market today. Laser maker Coherent (COHRplunged 20.5%, while chipmaker Macom Tech Solutions (MTSI) plummeted 25%.

Meanwhile, Restaurant Brands (QSR) pared losses to 0.7% after initially falling just over 2% after quarterly sales came in below estimates. The stock gave up its 50-day support level during its recent five-day losing streak.

After the close, Tesla (TSLA) will report its much-awaited Q2 results. Shares have run into speed bumps recently as they trade under their 50-day line, almost 20% off record highs set in June. Shares traded down 1.7% early Wednesday.

Within the IBD 50, TAL Education (TAL) was initially a bright spot within a sea of red among leading stocks. But the China education stock reversed to trade down 0.7%. The stock is extended from a 134.10 flat-base entry.

On the downside, NetEase (NTES) fell 3.8% as it moved significantly under its 50-day line for the first time since a cup-with-handle breakout on June 6. Shares are also under their 301.92 entry.

Finally, Paycom Software (PAYC) slumped 6.8% to pierce its 50-day line despite exceeding Q2 earnings and sales estimates late Tuesday.

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