Distribution Hits Nasdaq Again As Growth Names Take Hits

The broad S&P 500 and NYSE composite traded quietly and in a tight range Monday, but it was a completely different story on the Nasdaq as profit-taking hit several leading growth stocks. The tech-heavy index fell 1.1% in higher volume, registering its third distribution day in five days and fourth since its Aug. 13 follow-through. The rapid rise in distribution and selling in leading stocks …

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Big Cap Stocks Outperform As Broad Market Sinks

Big cap stocks held up well in Monday’s sell-off, which was mainly confined to the Nasdaq and growth stocks. Several Big Cap 20 stocks managed to finish only slightly lower or even ahead for the day.
Apple (NASDAQ:AAPL) has been the most closely watch…

WTI Rebounds As Dollar Slides After YTD High

West Texas intermediate crude rebounded after the dollar slid from a 14-month high before a Federal Reserve meeting. Brent’s premium to WTI narrowed to a five-month low on slower growth in China.
The Bloomberg Dollar Spot Index, which tracks the gre…

Top Mutual Fund Categories: U.S. Stock Funds Limp On

U.S. stock mutual funds were mixed but managed a slight gain overall in the week ended Sept, 11.

The average U.S. diversified stock fund rose 0.08%, bringing the year-to-date gain to 5.83%, according to Lipper. Small-cap growth funds, the only diversified group still showing a year-to-date decline, rose the most in the latest week. They rose 0.83%, trimming their year-to-date decline to 0.59%.

Growth funds outperformed value across the board for the week. S&P 500 index funds, which track the broad stock market, remained the top diversified stock-fund performers for the year to date with a 9.22% gain.

Health care rose the most among sectors, handing investors a 1.34% gain, while precious-metals funds were the biggest decliner, diving 2.77%. Real estate, down 1% for the week, was the top performer so far this year with an 18.08% return.

Harman Rides Demand For Audio, ‘Infotainment’ Systems

Harman International Industries is profiting from rising demand for its integrated car audio and “infotainment” systems.
Profit at Harman (NYSE:HAR), owner of brands such as Harman/Kardon, Infinity and JBL, rose 37% in the fiscal fourth quarter (whi…

Mexican Beer Sales Boost Constellation Brands

For alcoholic beverage giant Constellation Brands (NYSE:STZ), the wine trade has been sour lately, but the beer side has been sweet.

Take the company’s results for the fiscal first quarter ended in May. Wine and spirit sales fell 1% vs. a year ago on a constant-currency basis, due in part to inventory destocking.

But net sales in the beer category jumped 14%. Constellation is enjoying strong unit growth in Mexican beer brands — headed by Corona — sold in the U.S.

In 2013, Constellation bought the remaining half of Crown Imports’ Mexican beer import business from competitor Anheuser Busch-InBev (NYSE:BUD) for $5.3 billion. It’s turned out to be a great deal, for Constellation now dominates the U.S. market for Corona, Modelo and other Mexican beer.

Experts say Mexican beer is growing in popularity among younger non-Latino drinkers, including millennials.

Constellation has noted that this year through April 20, volume sales of Modelo Especial rose 25%, citing data from Information Resources. Pacifico logged an 11% gain. Corona Extra and Corona Light were up 9% and 5%, respectively.

Yields Rise As Traders Eye Possible Shift By The Fed

Treasuries declined for a seventh day, the longest slump in more than a year, on speculation the Federal Reserve may delete reference to interest rates staying low for a “considerable time” after it ends bond buying.
Government bonds worldwide headed …

New High Analysis: Yahoo Surges Ahead Of Alibaba IPO

Friday’s session served up several 52-week highs, but many names closed well off session highs just like the major averages.
The exception was Finish Line (NASDAQ:FINL). The specialty retailer of athletic shoes, apparel and accessories extended its …

IBD 50 Names Hold Gains, But Actionable Charts Scarce

Plenty of IBD 50 names are showing resilience and holding near highs. Damaged charts are the exception, not the rule. That’s the good news. The bad news is that new buys aren’t easy to find for growth investors looking to put new money to work.

A mild follow-through day for the Nasdaq on Aug. 13 has worked so far, but distribution days are starting to crop up. Those looking for new institutional money to come in from the sidelines have been left disappointed.

The thinking was that volume was supposed to pick up in the market after Labor Day, but that hasn’t exactly been the case. Major averages have generally been hitting new highs in light volume, resulting in several lackluster breakout attempts in recent weeks. Institutional buying is the fuel for breakouts. Without it, it’s hard for a breakout to make meaningful headway.

Volume has dried up in Actavis (NYSE:ACT) in recent days, so it’s no surprise that its recent breakout over 229.50 hasn’t made much headway. Keep in mind that Actavis’ latest breakout was from a late-stage base. Technically, the stock is still in a buy range, although it’s better to see a stock break out with conviction — not begrudgingly.

Jazz Pharmaceuticals‘ (NASDAQ:JAZZ) recent breakout looks a little better. It cleared a 166.39 buy point during the week ended Sept. 5 in strong volume. It was still in a buy range as of Friday’s close.

Illumina (NASDAQ:ILMN), meanwhile, cleared a cup-with-handle buy point of 161.10 in early June. It’s currently working on a new cup-with-handle pattern with a buy point at 182.37. A fresh round of institutional buying in the major averages would improve Illumina’s chances for a breakout, although the stock is struggling to hold its 50-day moving average. In early 2012, Swiss firm Roche Holding (OTCPK:RHHBY) offered to buy Illumina, but a deal never came to fruition.

For investors who bought Harman International (NYSE:HAR) when it reclaimed its 115.10 buy point in August, its price action has been disappointing. Harman is working on a new base now with an alternate entry at 116.81, but it has met with resistance at its 50-day moving average in recent days. It’s hard to hold the stock with conviction at this point.

One stock in this week’s screen that showed noteworthy action is F5 Networks (NASDAQ:FFIV). It completed a three-weeks-tight pattern with a buy point at 127.14.

Corn, Soybeans At Four-Year Low On Record Crops

Corn and soybeans fell to four-year lows after the U.S. forecast record harvests and expanding global inventories that will help limit gains in food inflation.
Domestic farmers will collect 14.395 billion bushels of corn in the season that started S…