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C.R. Bard, Tuniu and Netease Break Out Of Bases

The stock market spent most of the day underwater Monday, but several stocks made new highs by breaking out of bases. Medical products maker C.R. Bard (BCR) rose 4.28 to 153.13 on above-average volume, breaking out of an odd consolidation. The company reported earnings last Thursday that were 30% higher than a year ago, and the stock has been up every day since then. It has a five-year annualized …

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Inside IBD Big Cap 20: Facebook, Apple Thrive

A birds-eye view of the weekly Big Cap 20 shows no major change in the overall industry landscape.

Oil stocks and the somewhat related members of the transportation sector still maintain a vise-like grip of the list.

However, thanks in large part to its excellent quarterly report, Facebook (NASDAQ:FB) has muscled its way into the list of premier growth names with market values of at least $15 billion and decent trading volume.

The world’s top social networking site stormed into the Big Cap 20 for the first time in more than one month after rising 10% last week, its biggest gain since a 15% jump in the last week of January.

Last week’s gain included a strong gap up in price, and volume of 338 million shares was not only sharply above average, but also marked the biggest amount since the week ended May 2.

Big Tech Strength

Facebook is one of those rare companies that already scores more than a billion dollars in revenue each quarter, yet continues to truly meet the C in IBD’s CAN SLIM investment paradigm. Second-quarter earnings rose 121% to 42 cents a share. Revenue rose 61% vs. a year ago to $2.91 billion, marking the fifth quarter in a row of 50% or faster increases in the top line.

Clearly, Facebook’s investment in building out its mobile-based advertising infrastructure has paid off. As revenue grows at a rapid clip, the company’s profits benefit from enhanced operating leverage. In fact, after-tax margin rose to 37.5% in the quarter, the highest in at least four years.

As Facebook built its latest base from mid-March until its cup-with-handle breakout at 66.57, it got featured in IBD’s pages more than two dozen times. On the home page of IBD’s website, Investors.com, readers can use the search box at the top right to go through the story archives.

Besides Facebook, Apple (NASDAQ:AAPL) and Micron Technology (NASDAQ:MU) have also recently joined the Big Cap 20. They represent a resurgence of the chipmaking sector and continued high demand for new computing devices and smartphones.

Apple had cleared an 82.26 entry on April 28, but is trading close to a three-weeks-tight entry at 97.20. Micron is still up 24% despite Monday’s sharp drop in heavy trade. When a stock is extended, it means the investor should continue watching for new bases or new follow-on buy points to emerge.

Back to the oil patch, EOG Resources (NYSE:EOG) may be offering such an add-on opportunity. The stock has climbed steadily since clearing a 94.25 entry point in a four-month consolidation. In early May, the global oil and gas producer tested its 10-week moving average — a good spot generally to add shares. It’s now making a second such test, and a flat base has also emerged.

Stock Futures Deep In The Red: Amazon Tumbles, Baidu Climbs

Stock futures slumped lower ahead of Friday’s open, with earnings reports generating some emphatic premarket action.
Dow futures dived 35.8 points below fair market value. Nasdaq 100 futures tumbled 16.5 points. S&P 500 futures were off 3.7 points…

Stocks Up And Down At Open; Under Armour, Facebook Surge

Stocks opened in a narrowly mixed stance Thursday.
The Dow Jones industrial average and the S&P 500 inched up a fraction each. The Nasdaq dipped 0.1% as Qualcomm (NASDAQ:QCOM), Celgene (NASDAQ:CELG) and Alexion Pharmaceuticals (NASDAQ:ALXN) dived …

Stock Futures Steer Higher; Facebook, Skechers Nail Q2 Wins

Stock futures were somewhat chipper ahead of Thursday’s open, with positive weekly unemployment news, earnings reports and better-than-expected global manufacturing data bolstering investor sentiment.
Dow futures traded up 26.4 points. Nasdaq 100 futu…

Leaders Still Act Fine As S&P 500 Edges To A New High

The stock market rallied for a second straight session in mildly higher volume Wednesday, good enough for the S&P 500 to notch a fresh all-time high. The Nasdaq composite paced the day’s quiet gains, up 0.4%. It’s now a small advance away from painting a new 52-week high. The S&P 500 edged 0.2% ahead to keep its thin lead over the Nasdaq with a 7.5% year-to-date gain. Credit the strength …

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58.com, Tarena Among New Crop Of Top Chinese IPOs

Older Chinese stocks like Baidu (NASDAQ:BIDU) and NetEase (NASDAQ:NTES) have proved their staying power. Now, a couple of younger ones hope to follow their lead.

58.com (NYSE:WUBA) more than tripled in price from its Oct. 31 IPO at 17 a share, surging 246% to a March 7 high. From there it pulled back to start shaping its first true basing pattern and is still working on the handle with a 57.60 buy point. Volume has been light along the handle, a bullish sign.

Shares leapt 14% on June 26 — helping build the right side of the base — amid news that Chinese Internet giant Tencent (OTCPK:TCEHY) took a 19.9% stake in 58.com for $735 million.

Beijing-based 58.com, known as the Craigslist of China, turned its first annual profit last year with EPS of 25 cents. Analysts expect that to nearly double to 46 cents this year, followed by a 124% gain to $1.03 in 2015.

The company’s 98 Composite Rating is tops in its 31-stock Retail-Internet industry group.

Tarena International‘s (NASDAQ:TEDU) stock didn’t take off right out of the starting gate like 58.com’s. Instead, it dipped into a consolidation after its April 3 debut, then cleared a 10.90 buy point on June 12 in above-average trade.

It rose as much as 31% from the entry, triggering the eight-week hold rule, before easing again. This week, it’s rebounded off its 10-week average after finding support at the line.

Stocks sometimes offer a secondary buy opportunity during their first two pullbacks to the 10-week line after a breakout. But volume is still light in Tarena. Heavier turnover would show more conviction behind the rebound.

Tarena, also based in Beijing, operates learning centers in 33 major Chinese cities. It broadcasts lectures live to the centers so all students in a given course have the same instructor. The company is expected to grow annual per-share earnings by 64% this year and 59% the next.

The company is the biggest provider of professional information technology education in the country. It’s the latest Chinese educator to come public. Others include TAL Education Group (NYSE:XRS) (in October 2010), China Distance Education Holdings (NYSE:DL) (July 2008) and New Oriental Education & Technology (NYSE:EDU) (September 2006).

The Consumer Services-Education group has been lagging, but TAL and Tarena hold its best Composite Ratings.

Three Stocks That Just Made Classic New Highs

The classic new high is a thing of beauty. A stock rises to a fresh high. Volume is strong. The gain is sizable. The stock closes high in the day’s range. On the chart, this action leaves a long price bar and a high hash mark: simply beautiful. A clean move like that is hard to come by in the stock market these days. Individual investors have seen too many stocks thrust up early and then retreat. …

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July Months Is Top Month During Summer

Stock market’s seasonality patterns, holding stocks in July months, Stock Trader’s Almanac top-performing months, July is best month in 3rd quarter,July is fourth best month for Dow

The stock market often corrects during the summer months, but July’s decline hasn’t been so bad.

From 1950 to April 2013, July averaged a gain of 0.9% on the S&P 500, outpacing May’s 0.1%, June’s -0.01% and August’s -0.01%, according to the 2014 Stock Trader’s Almanac.

The S&P 500 notched gains during July months in 35 years and losses in 29 years.

In fact, July is the fourth best-performing month for the Dow Jones industrials, with an average gain of 1.2% over the past 64 years.

April, December and November still hold the top three spots in both the Dow and the S&P 500.

The Independence month is also the best-performing month of the third quarter except for Nasdaq Composite, the Stock Trader’s Almanac said.

So far through July 23, the S&P 500 was up 1.34% for the month, the Dow gained 1.54% and the Nasdaq rose 1.37%.

Whether you believe in the stock market’s seasonality patterns, historical records show some predictability in gains or losses for different months throughout the year.

There’s always exceptions to the rule, especially during years of economic or financial crisis and wars.

In case you didn’t follow the old adage of “Sell In May and Go Away,” holding stocks in July won’t make you rich, but it won’t make you poor either.

Lockheed Martin Reports Q2 Earnings; Stock Rises

Shares of defense contractor Lockheed Martin (NYSE:LMT) gained altitude Tuesday after the company reported better-than-expected quarterly earnings and revenue and gave a generally upbeat view of what’s going on inside the company.
The company report…