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Nasdaq Leads: Apple Retakes Key Support, FANGs Advance – Investor's Business Daily

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The Nasdaq stepped higher early Monday as the Dow industrials and S&P 500 struggled against narrow losses.

The Dow Jones industrial average and S&P 500 showed thin gains. The Nasdaq composite jumped 0.2%, as Apple (AAPL) and the FANG stocks pulled higher, and Nvidia (NVDA) topped the Nasdaq 100 with a 1.3% gain.

An odd session in China left Hong Kong’s Hang Seng index up 0.3% and the Shanghai Composite with a 1.4% loss. Shanghai’s markets tumbled, led by the tech-heavy ChiNext exchange, after a weekend meeting showed regulators committed to stepping up market controls in order to reduce financial risk. The ChiNext index dropped 5%.

Official data showed China’s economy growing at a slightly better-than-forecast 6.9% in the second quarter, equal to first-quarter expansion. China’s retail sales growth also accelerated, up 11% for June and above forecasts. Factory output was much stronger than expected, up 7.6% for June vs. consensus views for a 6.5% increase.

Europe’s markets were mildly mixed: London’s FTSE 100 popped 0.3% and the CAC-40 slipped 0.1%, while Frankfurt’s DAX struggled with a 0.4% decline in afternoon trade. In Japan, the Tokyo Stock Exchange was closed for the country’s Ocean Day holiday.

China Stocks Steady, Procter & Gamble Leads Dow

Despite Monday’s shakeup on China’s markets, China-based plays in the U.S. were largely unrattled. Alibaba Group Holdings (BABA), Baidu (BIDU), and Sina (SINA) all traded higher.  IBD 50 stock  YY (YY) spiked 4% in early trade, stabbing to a new high in very heavy volume.

Dow stocks traded in a tight range, flat to higher. Visa (V), up initially turned down 0.1%.

Dow peer Procter & Gamble (PG) opened flat after reports that billionaire and activist investor Nelson Peltz was pursuing a seat on the company’s board of directors. Peltz’ Trian Fund Management reportedly holds a $3 billion stake in the company.

Apple reversed opening losses and rose 0.6%, moving above its 50-day moving average for the first time in more than a month.

Te FANG group of internet stocks all traded higher, with Netflix (NFLX) up front with a 0.8% gain. The streaming content innovator reports its second-quarter results after today’s closing bell.

IPOs were mixed in early action, but Blue Apron (APRN) tumbled 11%, driving shares 35% below their late June IPO price.

Ferrari (RACE) slipped 0.3% in eacly action. Snap (SNAP) gained 0.3% and Square (SQ) added 0.7%. Square posted a 12% gain last week, breaking out past a 25.07 buy point in a flat base, lifted by speculation that it might be a takeover target for PayPal (PYPL). PayPal rose a fraction in opening trade.

New York Region Manufacturing Hits The Brakes

Manufacturing growth in the New York region has slowed sharply in July, according to the New York Federal Reserve, which marked down its Empire State Manufacturing Survey to 9.8 for the month vs. a 19.8 reading in June.

New orders and shipments were down, and delivery times lengthened. Employment rose slightly, but hours worked remained unchanged, suggesting employers are not adding shifts or overtime to meet demands.

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