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Stocks Pare Gains As These Top-Rated Stocks Get Crushed – Investor's Business Daily

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The major indexes reduced their gains Friday afternoon in an erratic session that saw some of the top stocks suffer catastrophic losses.

XAutoplay: On | OffThe Nasdaq and S&P 500 were up 0.1% and have been in a narrow price range all day. Small caps outperformed, with the Russell 2000 adding 0.5%. The Dow transports also led, rising 0.7%.

The Dow Jones industrial average rose 0.2%. JPMorgan Chase (JPM) and Goldman Sachs (GS) led the Dow with gains of about 2% each. JPMorgan is rising back above the 94.08 buy point. Goldman is still about 10% away from a new high as it works on a new base.

Volume was lower than at the same time Thursday. Winners led losers by a 9-7 ratio on the Nasdaq and by a 6-5 ratio on the NYSE.

A few building-related stocks made bullish moves.

Installed Building Products (IBP) broke out of a base after the company beat earnings expectations. The installer of insulation and complementary building products had adjusted earnings of 59 cents a share in Q2, an increase of 47%. Sales increased 33% to a record $282.2 million.

LGI Homes (LGIH) gapped up to a new high, adding 3% in heavy volume. Late Thursday, 591 homes closed in July 2017, up from 306 home closings in July 2016, representing year-over-year growth of 93.1%. The company ended the first seven months of 2017 with 2,863 home closings, a 25.7% increase over 2,278 home closings during the first seven months of 2016.

Builders Firstsource (BLDR) climbed 3% in busy trading. The stock cleared a 16.73 buy point last month and faded below it, but now is back above that entry. The construction supply company reported adjusted earnings of 37 cents a share and revenue of $1.84 billion, which beat Wall Street’s expectations.

Microchip Technology (MCHP) rose 3% in big volume as it cleared resistance around 83 in its chart. The stock is still working on a flat base with a 87.59 buy point.

But some of the declines Friday were nothing short of severe, both in terms of price losses and volume.

Electronics for Imaging (EFII) collapsed 41% in thousands of times more volume than average. The digital printing company delayed its quarterly results, which were due Thursday, citing issues over revenue recognition. The company said it is doing “an assessment of the effectiveness of EFI’s current and historical disclosure controls and internal control over financial reporting.”

Applied Optoelectronics (AAOI) plummeted 27%. The maker of optical-communications devices forecast current-quarter revenue that was well below estimates. Before Friday’s drop, Applied had best-possible IBD ratings. Its fiber optics industry group was ranked No. 1 of 197.

Trivago (TRVG) plunged 18% to a three-month low after the travel-booking company reported a loss for the quarter. Analysts had expected a profit of 2 cents a share. Impinj (PI) skidded 23% in more than seven times its usual volume. The tracking-chip company beat Q2 sales and earnings views, but gave a soft outlook.

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