The major indexes were nearly flat in afternoon trading Wednesday, but small caps led and Amazon.com (AMZN) shares crossed a key hurdle.
XAutoplay: On | OffAmazon.com rose above the 50-day moving average, a key stepping stone as the stock tries to form a new base. But so far most of the pattern has been buried below that line, which makes the base weaker. It’s also a late-stage pattern. Loop Capital initiated coverage of Amazon.com with a buy rating and a 1,200 price target.
The Nasdaq composite, S&P 500 and Dow Jones industrial average made fractional changes in a session of trendless trading. But the Russell 2000 added 0.3%. The small-cap benchmark led the market for a second consecutive day.
Volume was higher on the Nasdaq and lower on the NYSE compared with the same time Tuesday.
More than a dozen stocks topped buy points in today’s trading, and three were in the semiconductor sector.
Xilinx (XLNX) topped the 66.58 buy point of a cup-with-handle base. Volume was only average, which undermines the breakout. Integrated Device Technology (IDTI) surged past the 27.19 buy point of a cup-without-handle base. Volume was nearly three times its average. Entegris (ENTG) had a milder move but still rose above the 27.20 buy point of a lopsided cup with handle. Volume was well below average.
Barron’s, quoting a Keybanc Capital Markets analyst, reported that Integrated Device will benefit from wireless charging in Apple‘s (AAPL) new smartphones. While Broadcom will provide the wireless charging, Integrated Device stands to benefit because Chinese handset makers may also move to adopt wireless charging, and the company has design deals with those manufacturers.
Performance Food Group (PFGC) broke out past the 29.35 buy point of a base in heavy trading and remained in buy range. The food service distributor on Tuesday held an investors day in which it backed its outlook for fiscal 2018 (ending next June) of 13% to 18% growth in adjusted EPS to $1.40 to $1.46.
In the health care sector, one group continued to produce breakouts.
Novocure (NVCR) crossed the 21.85 entry of a consolidation in active turnover. It was the latest in a series of breakouts occurring in the medical products industry group, where Neogen (NEOG), ICU Medical (ICUI), Boston Scientific (BSX) and Baxter International (BAX) have broken out in the past couple of weeks.