Tech Stocks Sell Off, But This IBD 50 Stock Nears A Breakout

The major stock indexes were solidly lower in today’s stock market action, as interest rates hit new multiyear highs. The 10-year Treasury note yield hit its highest level since 2011. Top retail stock Costco (COST) is set to release its quarterly earnings after the stock market close. Meanwhile, IBD 50 stock SVB Financial (SIVB) shrugged off the market weakness and is nearing a potential breakout. (For updates on this story and other market coverage, visit the Stock Market Today.)

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The tech-heavy Nasdaq composite sold off about 1%, while the Dow Jones industrial average and S&P 500 held milder losses of about 0.5% apiece.

Earnings Reports: Costco After The Stock Market Close

After the stock market close, warehouse retailer Costco will release its fiscal-Q4 results. Analysts expect the company to earn $2.34 per share on revenue of $44.05 billion. The stock hit the 20%-25% profit-taking level from a 199.14 cup-with-handle entry in early September before easing from highs. Shares are just above the 50-day line, a key support level. Shares fell about 0.6% in morning trade.

Constellation Brands (STZ) advanced almost 5% after beating Q2 earnings estimates early Thursday. The stock is attempting to regain its 50- and 200-day moving average lines within a base that stretches back to early May.

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FANG stock Netflix (NFLX) fell almost 2%, as it builds the right side of a cup-shaped base. After falling as much as 27% from its 423.21 high price, the stock is back above its 50-day line. The relative strength line is lagging.

IBD 50 Stocks: SVB Financial Bucks Market Decline

Among the top growth stocks, SVB Financial followed up Wednesday’s near-5% rise with more gains. Shares advanced almost 2%. The stock regained the 50-day line this week and is just 2% off a flat base’s 333.84 buy point. Keep an eye on the relative strength line, which needs to show more improvement.

On the downside, a number of IBD 50 stocks saw losses of 2% or greater in early morning trade. Software stock leader Atlassian (TEAM) declined almost 4%, stretching a losing streak to four trading sessions. Shares are nearing another test of their 50-day line.

Meanwhile, Grubhub (GRUB) gave up its 50-day support level with a near-4% fall. Shares are about 12% off their 52-week high.

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The post Tech Stocks Sell Off, But This IBD 50 Stock Nears A Breakout appeared first on Investor's Business Daily.

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