After four straight days of bearish reversals, the major market averages once again tried to find their footing and advance higher in the stock market today, as Facebook (FB) looked to recover a key support level early Friday.
X All three major indexes — the Nasdaq, S&P 500 and Dow Jones industrials — moved up about 0.6% each.
The past four days have seen the general market move higher in the morning only to sell off in later-day trade and close low in the day’s range. Despite the four-day losing streak, the Nasdaq remains above its 50-day moving average line. The S&P 500 and Dow have been faring a bit worse, as they trade just below their respective 50-day moving averages.
Elsewhere, Apple (AAPL) rose about 1%, as it continues to etch the right side of a potential base. The stock is just above its 50-day line.
FANG stocks continued to try to outperform despite a tentative recent market environment, but were having some difficulty early Friday. Social media giant Facebook moved up more than 1% and is trying to recover its 50-day line, which it gave up Feb. 7. The company has seen rising competition from rivals Twitter (TWTR) and Snap (SNAP).
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Among companies reporting earnings, former leader Universal Display (OLED) plunged 15% after its 2018 sales guidance disappointed the Street. The stock stumbled below its long-term 200-day moving average line. A January breakout above a late-stage 192.85 buy point quickly sputtered, triggering the 7%-8% sell signal. Shares would go on to fall 34% off its peak price before rallying into earnings.
First Solar (FSLR) declined 4% after its Q4 results missed top-line estimates by a hefty margin, even as EPS results came in better than expected. Despite an eight day winning streak that spanned the past two weeks, the stock remains below its 50-day line, which appears to be a stout resistance level. Shares are trying to build the right side of a potential base.
MercadoLibre (MELI) fell nearly 2% after announcing weaker-than-expected EPS results late Thursday, even as revenue beat analyst targets. Shares found support at their 50-day line two weeks ago and are well-extended from a 274.55 cup-with-handle buy point.
Blue Buffalo Pet Products (BUFF) rose 17% after General Mills (GIS) agreed to acquire the natural dog and cat food maker for about $8 billion, or $40 per share. The stock recently found support at its 50-day line.
Inside the IBD 50, Wingstop (WING) faltered 8% after its 2018 outlook fell short of analyst estimates. Shares are nearing the 10-week line for the second time since a breakout above a 33.65 flat-base entry.