The major stock indexes were slightly positive in afternoon trading Monday as Wall Street braced for another round of earnings reports, including one from Netflix (NFLX) after the close.
XAutoplay: On | OffNotable tech movers Monday included Apple (AAPL). It reclaimed its 50-day moving average and looked poised for its seventh straight gain in light volume. Shares rose 0.7%.
Tesla (TSLA), meanwhile, slumped 2% on news of another accident reportedly related to Tesla’s autopilot system.
The Dow Jones industrial average, S&P 500 and Nasdaq composite showed gains of 0.1% to 0.2%. Volume on the NYSE Nasdaq was tracking close to Friday’s levels in the stock market today.
Metal stocks and several retail-related industry groups outperformed.
Ollie’s Bargain Outlet (OLLI) was trying to clear a flat base with a 44.18 buy point, rising 2% to 44.10. Volume was light.
Inside the IBD 50, Nutrisystem (NTRI) continued its low-volume ascent, rising 2.5% to 56.50. It’s still in buy range from a 55.10 entry but it still has its all-time to contend with at 57.50. Earnings from the provider of weight-management products are due July 26 after the close.
News that China’s economy grew at a rate of 6.9% in the second quarter didn’t stir much excitement on Wall Street on Monday, but it did help the cause of some China names, including YY (YY). Shares rose 3% to 65.91, following through bullishly after Friday’s breakout over a 61.62 buy point. It’s extended in price now.
Netflix (NFLX) added 0.5% to 161.86 ahead of its earnings report after the close. A weekly call option with a 162.50 strike price (July 21 expiration) recently came with a premium of $5.70, presenting a trade with maximum downside risk of 3.5%. In other words, the right to buy 100 shares of Netflix at 162.50 came at a cost of $570.
Netflix recently cleared an aggressive entry at 160.07, but it’s still working on flat base with a conventional entry at 166.97.
Bank of America (BAC) reports Tuesday before the open. Shares eased 0.6% to 24.06 in afternoon trading as the stock works on a cup-with-handle base with a 25.21 buy point.
United Continental (UAL) reports Tuesday after the close. It’s setting up in a base-on-base pattern with an 83.14 buy point as it trades just above the 50-day moving average. Shares inched higher to 79.93.