Indexes Whipsaw Higher; Intuitive Surgical, Constellation Energy, Google In Focus

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0:25Good afternoon, everyone, and welcome to Stock Market Today. My name is Ken Shreve. It is Wednesday, November 19th, and, well, another volatile day for the NASDAQ. Traded as high as 1.7 % today. Came all the way back to break even. Had a late session rally, ended with a gain of about six-tenths of a percent, waiting on NVIDIA earnings after the close. Before we get into today's market discussion, let me bring in our news editor, Ed Carson, who has got three stocks to watch. Good afternoon, Ed. Good afternoon. I'd like to take a look at Intuitive Surgical, Constellation Energy, and Google. Okay, Intuitive Surgical, we know that one very well.

1:11on the leaderboard model portfolio. But before we talk individual stocks, let's start by taking a look at the NASDAQ composite. You can see here ended with a gain of about six-tenths of a percent or so. Decent day. Looks like it ended slightly in the bottom half of its trading range. Had a nice gain early in the session. breadth was slightly negative, less than two to one. Let's check in on the S &P 500. That was also positive today. Zero S &P 5. There we go. S &P 500 also managed a modest gain of about four-tenths of a percent, Russell 2000. Let's check in on the Russell 2000 here. Small caps closed near its session low, just a modest gain for small caps, up two-tenths of a percent.

2:17And then the Dow Jones Industrial Average here is 0 DJIA, also ending with a gain of close to two-tenths of a percent or so. So, Ed, we've got the NASDAQ below the 50-day moving average here. Again, a 1.7 % intraday gain. Faded a little bit into the close as we wait for NVIDIA's earnings reports. Yesterday, we talked about growth stocks under some pressure here. Market looking a little bit vulnerable. We're seeing, you know, money rotating into gold stocks, into some health care names. Still seeing some decent setups out there in tech land, but definitely AI stocks, some profit taking, hitting that area of the market.

3:09No question about it. Yeah, absolutely. All the major indexes are still below the 50-day lines, even at the session highs they were. So there was some nice action. I think that investors should definitely, it's the last several weeks. The last several weeks have shown that you really just can't trust market, you know, a strong open or a rally offloads. You know, the whole thing is you want to follow a trend. But if the market only trends for three or four hours, it's hard to follow that in any way that have a chance of being profitable. You know, you still showed NVIDIA there. And obviously, we'll see how that happens tonight.

3:42But NVIDIA, Broadcom, you know, Google, they really pushed up the market. You know, if you if you know those things, they all made some nice moves of Broadcom, arguably actionable if it weren't for NVIDIA. NVIDIA back above the buy point, back above the 50 day line. Google clearing a three weeks tight. I think people realize that Gemini 3 might even be better than they had talked about or the implications of it. So there was a lot of things. But absent that, if you look at RSP and QQEW, those, I think, were down, you know, at least fractionally. Again, even if they'd been up, they still don't look that good.

4:20But, you know, so I don't want to, you know, in QQEW, I think it was just down a fraction. So there was, as you mentioned, there wasn't much breadth to this market. And again, we'll see. Look, we've been waiting for this earnings report. I would also stress that the earnings report could come out and we could pop up 5%, 7 % and then it goes away. I mean, that has happened, I think, a couple of times in the last four earnings reports that I can think of from NVIDIA. I mean, either that day or the next day. So you just do not be, you know, don't think, oh, we're rallying up for the close. We're sure to go up.

4:54It's like, well, we'll see. Let the market tell you what to do. Don't wish that the market is doing something and betting off of that. Yeah, I mean, you get the strong opens followed up by weak closes. So you could get some early enthusiasm that could be followed up by some late session sellings. You never know. But yeah, the NASDAQ 100, as measured by the Qs today, up six-tenths of a percent. But yeah, that equal-weighted QQEW didn't do nearly as well as the NASDAQ 100. flat, just fractionally lower here. So the market was slightly higher today. FFTY, you know, decent day, up 1.1%. It also closed in the bottom half of its range.

5:49But look at that pullback in FFTY. It comes all the way down close to its 200-day moving average. Not sure that The pullback got close to 20 % for FFTY, but I think it was close. And similar pullback to Cathie Wood's ARK ETF, which is a similar growth stock proxy under a lot of selling pressure. That's down, looks like, seven sessions in a row here. I like to look at both of these. I like to look at both of them together because FFTY, sometimes there's a lot of healthcare names right now and a lot of gold names. And so that's helping it. And then on the other side, well, okay, you know, ARK has a lot of Tesla or this.

6:34So there's sometimes a couple of stocks there that have a big impact. But if you look at the two of them, it's very clear that growth, aggressive growth is struggling. Yeah, yeah, no doubt about it. So, okay. Well, that's then SMH, the VanEck Semiconductor ETF, you know, fighting a good fight at the 50-day moving average here. And Avago Broadcom is a name that we had done quite well in the leaderboard model portfolio. Recent break of the 50-day moving average, we decided to take profits in this name. Definitely a name that could find its way back onto the leaderboard model portfolio. It was a nice move above the 50-day moving average today.

7:22Still seeing a lot of outperformance among healthcare stocks today. The healthcare select sector spider really showing a lot of strength here after a nice move above the 150 level. uh, ISR, ISRG, uh, you know, nice, uh, nice, nice move, uh, here. We're going to, uh, well, introducing Fidelity Trader Plus, the next generation of advanced trading from Fidelity. Customize your tools and charts and access them seamlessly across desktop web and mobile for faster trades anywhere you go. Try the all new Fidelity Trader Plus. Learn more about our most powerful trading platform yet at fidelity.com slash trader plus.

8:09Investing involves risk, including risk of loss. Fidelity Brokerage Services, LLC. Member NYSE SIPC. Why don't we start with that right now, because this is the first stock that you wanted to talk about. This was a nice, decisive move above the 550 level here. Volume really didn't expand to the upside, but just a nice, bullish move for ISRG after a kind of a strange pullback down to the 21-day line, but it found support right where it should. But yeah, like the volume the last couple of days still is better than that pullback. And just in general, the volume has been better. Obviously, there was a lot of volume when it first gapped up.

8:46But, you know, the AD rating is an A. The up-down volume ratio is a 1.4. So those are positives for this. Yeah, I mean, it pulled back. Today, it got back above 552 or so. So I think you could see that as actionable. That's probably how Swing Trader saw it because Swing Trader put this back on after the finance board of the 21-day line. And, you know, the relative strength line, that's sort of interesting. The relative strength line is already higher than it was like when the stock was higher a week ago. So it shows you how the market has been weak, you know, in that regards. The fact that this is confirming the strength, even though the stock isn't as high, you could use 552 as a buy point, you could use last week's higher or whatever as another high, because that would also get you above some more levels like 568 and others.

9:33So, yeah, this is just showing some strength. There was concerns about tariffs. Those seem to have faded. The growth has picked up, you know, accelerated on the earnings and sales side for the last couple of quarters. So just a strong performer when medicals are back in favor. Yeah, we like to see earnings and revenue growth accelerate. And when they reported Q3 results recently, that's when the stock gapped up right here. But you can see their earnings up 30 % compared to Q2 when it was up 23%. So that's acceleration. Revenue here up 23%. That was accelerating growth from 21%. So good growth and accelerating.

10:20That's always a good sign. So Intuitive Surgical, another name in the leaderboard model portfolio. Now, nuclear stocks. This is an area of the market that has really, really been hit hard, especially some of the really highly speculative names, maybe a name like an LEU, Centris Energy, which made a really nice move, doubled from 200 to 400. came all the way back down to the 200 level. But you do have an institutional quality name, Ed, like a Constellation Energy, CEG. The pullback here hasn't been as extreme. Modest break below the 50-day moving average, but volume came into the stock today. There was some news, I believe.

11:11Tell us about Constellation here. Yeah, they got a$1 billion loan to help it restart a three-mile island from the energy department to help it restart a Three Mile Island reactor. That's that reactor deal that they've agreed to provide 20 years of power to Microsoft. So that was one of the things like, oh, that was one of the big landmark deals that said, okay, nuclear is back. Yeah, and today's move, powerful move above here, back technically above a buy point that wasn't broken, you know, officially, though, with the round trip, you might say, I'd like to see something else. But it got above the 50-day line.

11:48And I think with maybe if it got above today's high, that would be actionable, sort of breaking a trend line above the 50-day line. So it's just – it was weird because some of the nuclear stocks sold off even when some of the AI plays were still rallying earlier. The energy plays seemed to come off first. So it would be interesting to see if they can bounce back. Obviously, what NVIDIA has to say is going to have a huge impact on the entire AI ecosystem. system but uh this was a this was a bullish move here uh if not viable certainly a setup day i'd say for uh for a stock that is is institutional quality as you say yeah yeah no doubt about it take a look at a longer term perspective here a weekly chart uh kind of in the early stages of building a new base uh still trying to get above that the 10-week moving average if it can make a little more progress, close to breaking out of a downtrend here on the weekly chart.

12:48So Constellation Energy, definitely a name to keep an eye on among nuclear stocks here. And then finally, you know, boy, a lot of damage in Magnificent Seven stocks. I mean, we could just kind of go through the group here and, you know, you see a name like Meta Platforms. My goodness, you know, this was an earnings sell-off here. I mean, this is a company that obviously has been spending a lot on AI. Maybe some questions about what kind of return on investment they're getting on all of their AI spend. They've had some high-profile departures in their AI area. This is probably weighed on the stock Oracle as well.

13:39profit margins from their NVIDIA chips in question. You've got Amazon in the Magnificent Seven under a lot of selling pressure. Yet you have Google, a Magnificent Seven stock that keeps hitting all-time highs and closed off highs today after crossing the 300 level. A lot of volume came into the stock. This by far is the best performing magnificent seven stock, maybe along with Apple has been doing pretty well up here. But what do you attribute Google's relative strength among the magnificent seven stocks at this point? When I think it was like the whole move is sort of like there was it was lagging for a while.

14:28It wasn't outperforming. The valuation was actually pretty low for the mag seven stocks, I think, because people thought that AI was going to really hurt them. Like there was going to, AI would come in and steal their search business, but that hasn't happened. And their Gemini program seems to have gained market share in that chatbot world. They just released, so this week they got the Buffett investment that came out late Friday. So that helped it on Monday. It got, you know, there was, they released Gemini 3. It tried to move higher, but the market was weak. So there was a bit of a balloon down.

15:02And today the market was a little better. And I think people realize not only was Gemini 3 pretty good, is what the initial read is, and I have no idea personally, but also that it was made clear that Google trained Gemini 3 not on NVIDIA chips, but on its in-house Tensor chips. So that could be, oh, well, maybe they could do stuff in-house. And one reason why Broadcom did well, well, who did Google make the Tensor chip? They did it in collaboration with Broadcom. So I think that's one reason why Broadcom was so strong was this realization that, oh, now again, you know, I don't know how great the Tensor chips are.

15:37Maybe they had to use 10 times as many chips to do what NVIDIA chips would do. But it still sent a signal that they could do that. So there's a lot of reasons that Google was seen as cheap. It's delivering. It may be best served now that it can do stuff with AI that some of the others can't. So a lot of reasons to like it. It did clear it three weeks tight. It's a little extended for a new position in my view. Sure. But I think you could if you had an existing position to add some shares. So, yeah, it's just been really, really acting well over the last several months. Really impressive, RS. Yeah, and really a great example of when a stock starts an uptrend like Google has.

16:21You see all these blue spikes in volume on the weekly chart here. This is really what an example of a stock under accumulation looks like when you see these blue volume bars spiking higher and coming in higher than the prior week's volume. Just really just a simple way of telling what a stock under accumulation by big investors look like. You know, Alphabet also, Ed, I mean, they have to be given credit for their dominating lead in autonomous driving. I mean, granted, Tesla's making progress in autonomous driving, Uber. There are a lot of companies making progress, but Alphabet really seems entrenched with Waymo.

17:09They're going into more markets. They're just now going into Miami, expanding in Texas. They're all over Los Angeles. I mean, they have to be considered the leader at this point in autonomous driving. I think that has to be helping the stock as well. Yeah, I mean, it's certainly not something that's generating profits for them, but it's probably something where it's getting faster for them to expand. And at some point, the costs are coming down. Maybe people can also envision, hey, maybe if they could find ways to integrate this in the production process rather than aftermarket, integrate it like, say, with a Hyundai vehicle or something like that.

17:47You could get the cost down really low. And that would be where you'd get that mass production in a way. But we'll see. But there's a lot of things are going right now when people a year ago were thinking, I don't know, you know, is this really this is going to be the laggard? And but but it's not. But yeah, so really, really great for those who have held on to this for a while. Yeah. Yeah. All right. Well, we do have some some earnings reports to look at after the close. I don't know if NVIDIA is out there. Okay. Well, let's start with NVIDIA. I'm guessing there may be some good news to report here.

18:27Let's see. NVIDIA is making an early move here. I don't know if you've gotten any early look at the numbers, but at least an early pop here of about 3%. Yeah, they beat views slightly on earnings. A solid beat on revenue and specifically on data center revenue. Jensen Wong, I think in the release, talked about off-the-charts demand for Blackwell. I think one of the questions is, is the supply? Everybody knew the demand was going to be strong here for this quarter and in the near term. The question is what they have to say about, you know, either in the statement and in the call, that are they going to be able to make enough to take advantage of all that?

19:09But right now, in the moment, it's here. We'll see where it goes. it closed back above a buy point in the 50-day line, but you don't know where this is going to go at the end of tomorrow. Right, right. Well, we have to kind of watch the action. The after hours session is going to go until 8 p.m. Eastern time. So there's plenty of time for after hours trading to shake out here. And then we'll have the pre-market session tomorrow. And then, of Of course, there's the conference call. I believe that is at 5 p.m. Do you happen to know, Ed? I don't know the time, but that'll be coming up. And obviously, I want to say it's 5 p.m.

19:54Eastern time. I can't be sure about that, but that will be a worthwhile listen as well. We also have Palo Alto Networks that reported after the close. Security software stocks have come under a lot of selling pressure. Palo Alto, you can see a bad break of the 50-day moving average last week. That looks like it's under some selling pressure here, down 6 % in the early going here. I'm not sure what happened. I mean, they beat views by slightly, but this one often doesn't beat by a lot. And they guided slightly higher on EPS, in line on revenue. They also announced, I believe, a$3 billion acquisition.

20:35of, you know, so we'll have to see how that goes. I mean, I don't know, but yeah, not a good reaction. So it'll be interesting to see how stocks like CrowdStrike perform, you know, like a few of the names and, you know, Zscaler, some of the other names in this group. Right now, I don't see CrowdStrike falling much, but because that's one that's actually in a buy point. So, yeah, so a lot going on. We'll have Walmart before the open, we'll have the jobs report before the open. And boy, tomorrow's open and tomorrow's session should be, there could be a lot of, I don't think it's too wild to think that you might see some whipsaw action.

21:10But I think you can say that. Yeah, more of the same. And we should let people know that the homepage of investors.com will have a lot of continuously updated news about NVIDIA's earnings report. our own Patrick Seitz and our tech team will have live coverage of NVIDIA's earnings and the conference call. So be sure to check out investors.com. And that is going to do it for today. Ed, thanks so much for the market commentary and the NVIDIA color. We appreciate it. All right. That'll do it for today. Rachel Fox will be in the host chair tomorrow morning for IBD Live. So be sure to check that out.

22:00If you haven't checked out IBD Live yet, just go to investors.com forward slash IBD Live to check out our hour and a half market stock market show every morning where we talk about actionable stocks and all the stock market news. And then Friday, Dave Chung will be hosting and will be welcoming back Alex Marenko, a longtime former portfolio manager for William O 'Neill, longtime growth investor, popular guest. He'll be on Friday. So that'll do it for today. Ed will be back tomorrow with Alexis Garcia for another Stock Market Today video. So we'll see you back here tomorrow. Have a great afternoon, everybody.

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