The same trends we have seen much of the past month continued today – relative outperformance of larger cap/safe stocks, relative underperformance by smaller cap/growth stocks. Most of the selling took place in the afternoon as indexes were generally higher up to that point. The S&P 500 was down 0.14% and the NASDAQ 0.40%. But the 2 indexes we don’t discuss daily show the major divergence in the market right now – the Dow Jones Industrial Average was up 0.20% while the Russell 2000 was down 1.00%.
Indexes continue to stay in a similar range – the S&P 500 not too far from highs while the NASDAQ lagging badly. With the S&P 500 you can see the index is essentially in the exact same spot it was 2 months ago, while the NASDAQ is down substantially from early March.
Meanwhile the Russell 2000 is near its yearly lows!
Usually we show you the NYSE McClellan Oscillator but today we’ll show you the same measurement for the NASDAQ since we are approaching oversold on that index.
Priceline (PCLN) had a volatile day as it reported earnings.
The company reported higher-than-expected quarterly profit as it booked more hotel stays, car rentals and airline tickets. The company, which owns Booking.com and Kayak.com as well as the namesake website, also forecast second-quarter profit below estimates, saying a decline in its “name-your-own-price” segment would hurt revenue growth. Net income jumped to $331.2 million, or $6.25 per share, in the first quarter, from $244.2 million, or $4.76 per share, a year earlier. Excluding items, Priceline earned $7.81 per share, compared with $6.92 expected by analysts.
Keurig Green Mountain (GMCR) was the day’s big winner post earnings. Looking at the chart, when you see a stock clear a long term downtrend as GMCR did today you want to see it hold that in the ensuing few days. So a level like $100 is a very easy level to watch; if the stock falls right back down then today was a non event, and false breakout.
Keurig Green Mountain, known for its single-serve coffee brewing system, said its net income climbed 22 percent in the fiscal second quarter. The company said its sales rose 10 percent over the three months ended March 29, and its net income and revenue surpassed Wall Street’s expectations.
If you are looking for some outperformers in the NASDAQ space, one name that is showing up is Sandisk (SNDK) although near term it is very overbought.
In the biotech space we have Questcor (QCOR) – this is not one of the mega caps that was so in favor for a year and a half until a major selloff 2 months ago but still a $5B market cap type company.
So there are pockets of strength out there in the NASDAQ but right now most of the money seems still to be flowing to large cap, slow growth type safety stocks.