The major stock indexes reversed lower Tuesday, but damage was minimal, after a quote from President Trump about the North Korea situation rattled markets.
Speaking to reporters at his New Jersey golf club, he said North Korea threats will be met with “fire and fury like the world has never seen.” The latest development out of North Korea is that the country has created a small nuclear weapon that can fit in its missiles, according to published reports.
XAutoplay: On | OffAt the close, the Nasdaq and S&P 500 lost 0.2%, while the Dow Jones industrial average eased 0.15%. Preliminary data showed volume on the NYSE and Nasdaq coming in above Monday’s levels in the stock market today.
Apple (AAPL) outperformed in the Dow, rising 0.8% to 160.08. Nasdaq 100 leaders included Norwegian Cruise Line (NCLH) and Tesla (TSLA) with gains of 5% and 3% respectively. Apple recently gapped up out of a base last week with a 156.75 buy point after reporting solid earnings. It’s still in buy range.
During the regular session, Twilio (TWLO) gapped up over an aggressive entry of 32.33 after reporting strong earnings. Shares jumped 10% to 33.58. The enterprise software firm shows strong sales growth in recent quarters, but the company isn’t profitable yet, partly due to heavy R&D spending.
Inside the IBD 50, Zebra Technologies (ZBRA) gapped above its 50-day moving average after reporting earnings before the open. Shares rose nearly 10% to 106.70. Zebra continues to work on a flat base with a conventional entry at 109.40. Also in the IBD 50, PRA Health Sciences (PRAH) also gapped up, rising nearly 7% to 79.14, although the stock met fairly strong resistance around 80. The contract research organization helps Big Pharma and biotech bring drugs to market quicker.
Michael Kors (KORS) retook its 200-day moving average with a bullish gap up in price. Shares jumped 21.5% to 45.25. An earnings beat and strong outlook lifted sentiment around the stock, but sales growth declined for the fourth straight quarter. Last month, Michael Kors announced plans to buy luxury shoe name Jimmy Choo for just over $1 billion.
The current week is quiet in terms of economic data, except for wholesale and consumer inflation data due Thursday and Friday, respectively. Monitoring inflation remains a focal point for the Fed but remains contained so far.