Nasdaq Extends Losses Ahead Of Micron, Inflation Report; CAH, INDV, EBAY In Focus

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0:32Ken Shreve:Good afternoon, everyone, and welcome to Stock Market Today for Wednesday, June 24th. It's Alyssa Coram here and the NASDAQ extending losses, further declines below the 50-day moving average. But will Micron's earnings after the close today give that tech sector a much-needed boost? We'll get into it. Joining me now to discuss that and more is my colleague, Ken Shreve. Ken, how are you doing today? Doing okay. Hey, doing okay. And yeah, looking at a fairly mild decline for the NASDAQ today, Ali, down about four-tenths of a percent. Looks like we might have had volume creep just a little bit higher than the prior session.

1:12But let's take a look at a few stocks today. Going to stick with the healthcare sector. Take a look at Cardinal Health, CAH. We're going to take a look at a tech stock, eBay, E-B-A-Y. And also look at Indivir, a drug maker, a big pharmaceutical stock, INDV. And of course, looking at Micron trading higher and after hours, we'll touch on Micron and talk about their earnings report.

1:43Ken Shreve:We sure will. But first, let's take a look at the major indexes. As you mentioned, Ken, the NASDAQ down about four tenths of a percent on the day. Same for the NASDAQ 100. It was a mixed day. The S &P down one-tenth of a percent right around that 50-day moving average. The Dow up on the day, almost 0.4%. It did back off its intraday highs. The Russell 2000 represented by this IWM ETF also up on the day. So what do you make of the action here for the NASDAQ closing below the 50-day moving average now two sessions in a row? Yeah, well, I mean, you look at the percentage decline. It wasn't too bad, down four-tenths of a percent.

2:32But, you know, the NASDAQ was up 1.3%, almost 1.3 % on an intraday basis. So to see it close so far off highs, that's not great. But, you know, and we did, it looks like we're going to get slightly higher volume. So this is going to be another, likely another distribution day that we're going to add to the count today. So we are going to lose a distribution day on the NASDAQ's count. So, but we're likely going to add one. So the count's going to stay the same at eight for the NASDAQ. the NASDAQ. And we did fall a little bit further below the 50-day line today. But like I mentioned this morning on IBD Live, watching the SMH just as closely as we are the composite these days.

3:29And I got to say, I like the action in SMH today a lot better than I did on the NASDAQ. So SMH came down and touched that 21-day exponential moving average and managed a nice close off lows. And there's a lot of important stocks in that SMH ETF and semiconductor stocks are certainly a big, big leadership pocket in the market. And so to see SMH hold support like it did today, We'll look at that as a fairly big positive, you know, in the market. S &P 500, fairly mild decline today. So, you know, that's not going to be a distribution today. And that's still kind of sitting right at its 50-day moving average and not a break like we've seen on the NASDAQ.

4:25So, you know, not too bad on the S &P 500. Yeah. And these tests of the 50-day line, test is what we call it for a reason, right?

4:36Ken Shreve:Because if you do see a continued deterioration, that is cause for concern. But it wouldn't take much to get a notable bounce off of that support level if that can turn into support. So maybe Micron is just what the doctor ordered. We'll have to see. But we're definitely in test mode here at this critical juncture. Yeah. And I have to say, even when I checked the breadth maybe an hour or two ago on the NASDAQ, and this has been a very consistent story for several days, because we've had this, even when technology stocks have come under pressure, we had a lot of broad leadership underneath the surface once again today.

5:30You know, we had bond yields under a lot of pressure today. So that fueled a big rally in home building stocks. You had, you know, oil under a lot of pressure again today. Oil prices have just been falling precipitously. And so you had your airline stocks, you know, taking off, you know, so look at the Jets ETF. So, you know, this has resulted in, you know, really good breadth on days where you wouldn't expect breadth to be pretty good. So, like I said, I didn't check the final tally on breadth today, but when I checked an hour ago, maybe a couple hours ago on the NASDAQ, it was evenly split. You know, evenly split.

6:17Winners and losers were evenly matched. You know, and that was when the NASDAQ was down pretty good. It was down seven-tenths of a percent, eight-tenths of a percent when I checked. So, you know, so it was pretty good breadth underneath the surface. But, again, we're seeing, you know, financials, health care, you know, even looking at a chart like Target, you know, TGT, seeing some retailers outperforming here. So, you know, some technology stocks and some AI stocks, seeing some isolated cases of weakness out there. but seeing a lot of other stocks acting well below the surface. And, you know, RSP, obviously the equal weighted S &P 500 ETF, that is still fighting a good fight above its short-term moving averages here.

7:04So kind of a tricky, you know, tricky, tricky market here. But, you know, the NASDAQ is a little bit below the 50-day moving average. This is the main index, the NASDAQ composite, that's under the most distribution right now. But it has not been a violent break at this point of the 50-day moving average. Still holding above those lows from about a couple of weeks ago. And again, we'll see how Micron trades in the after hours. We'll see how it opens tomorrow. But certainly would not take a whole lot for the NASDAQ to get back above its 50-day moving average. and really not that far from its 21-day line either.

7:51So we'll see.

7:53Ken Shreve:This podcast is brought to you by ReliaQuest. Cyber criminals are constantly attacking. They want your data. They want your identity. They want your innovation. ReliaQuest fortifies your business with Agentic Defense, AI that detects, contains, and eliminates cyber threats in minutes. It helps your security team move faster at the work that matters most to protect the business now and delivers insights to help them predict what's next. ReliaQuest, agentic defense for the enterprise. Learn more at ReliaQuest.com. That's R-E-L-I-A-Q-U-E-S-T.com. Yeah. We'll have to see if there are buying opportunities as the week progresses or if we need to get more defensive if we continue to see things slide.

8:36Ken Shreve:So Ken, I am going to switch things up a little bit since we keep talking about Micron. It's a high profile report and it's up big. So I think we should go there before our other stocks. Shares up over 8%. It does look like a big earnings beat. EPS growth of about 1 ,200%. So very strong. Also seeing impressive guidance from the company. Yeah, this is very interesting when we were talking about this this morning on on IBD Live. I noted the last time that Micron reported earnings, and this was interesting because this was the time when the market was right in the middle of a correction. So the timing of Micron's last earnings report, you know, they reported in the second half of March, and, you know, the market was just right in the middle of or towards the latter end of a pretty sharp market correction.

9:32So, you know, no matter what Micron said, and even though the numbers were excellent when they reported three months ago. It didn't help the stock and it continued lower. And then you had this amazing follow-through day for the S &P 500 on April 8th. And then Micron bottomed, the stock market bottomed right in that area. And it just launched a great rally for the stock market and Micron. Now, ironically, Micron reported earnings this time around and the market was looking a little vulnerable. You had distribution in the NASDAQ again, and the NASDAQ looking a little bit vulnerable and, you know, eight, seven distribution days in the count.

10:12But, you know, they're talking an equally bullish story this time around. The only difference is we're in a confirmed uptrend this time around. You know, we lowered our outlook yesterday down to 60 percent to 80 percent. But market conditions are a lot different this time around than three months ago when we were really stuck on a nasty downtrend. So we'll have to, I'm sure the tone is going to be very similar this time around when Micron has their conference call. So we'll just have to give a listen. But the quality of the beat, it looks very similar to the last time around. And haven't had a chance to look at the guidance, but the profit margin and everything looks very, very strong again.

11:01So maybe, you know, this time around with the market still on an uptrend here, you know, maybe Micron will have a positive reaction to earnings and maybe it'll give the NASDAQ a lift. But again, we'll just have to listen to the conference call and see what they have to say about forward guidance.

11:21Ken Shreve:Exactly. A promising reaction, though, here so far with the stock up 9 % and climbing, and it is boosting group peers. So I'm seeing Silicon Motion up 5%, SanDisk, which I own, up about 7%, Western Digital, also up north of 7%. So will this continue into Thursday's trading? We will have to see. And if there is that ripple effect on that broader AI and tech environment, remains to be seen. All of these memory and storage stocks at one point today were all at the top of the worst performers in the NASDAQ 100 today. They weren't down huge, but they were 3%, 4%, 5%. They were the worst decliners in the NASDAQ 100 when the NASDAQ 100 was down near its lows at one point today.

12:18But you can see how they closed. I mean, Western Digital came down close to the 21-day line, closed off lows. They all managed pretty good closes today. And, you know, SEMO, excellent close as well. So they're still showing some strength out there. And, yeah, good to see Micron getting a bid here in after hours. Absolutely.

12:45Ken Shreve:Okay, Ken, let's move on. Next, we want to take a look at Cardinal Health. We've talked about a lot of healthcare names as of late, money rotating to that sector, and here's Cardinal Health breaking out of a cut base today. Yeah, this is just a kind of a boring old healthcare distributor, drug distributor, healthcare supplies, very, very low earnings stability ranking, which is good, just a good consistent track record of earnings. So really seeing a lot of money rotate in the market here. So as money profit taking hits some technology stocks, seeing A lot of health care outperformance. Cardinal is just a great, you know, it's a defensive stock, but a stock that is, you know, setting up here.

13:43And, again, just to have a little bit of defense in your portfolio as money rotates here, it's just a good idea to have a name like this or have some defense in your portfolio at this stage of the game rather than be weighted completely 100 % technology. So this is just a good option for you. So Cardinal Health, I think, is actionable here and just a good large cap company and a good defensive industry group. So going back to the daily chart here, I thought that the stock was buyable today on this breakout and still looks to be in a buy zone here. Good accumulation distribution rating. And again, the industry group is not highly ranked, but again, it's just been a nice rally off lows and a good breakout today.

14:40Not a whole lot of volume in the stock, but just, you know, it's been a pretty good leader in this group and good technical breakout today.

14:49Ken Shreve:Yeah. And this is also a good example of some of the nuances with pattern recognition on the daily identifying a cup pattern to our eyes though you can see a handle there and indeed on the weekly chart it is a cup with handle that is showing up a little bit of a sneaky handle there on the weekly yep all right good stuff let's now go to ticker indv indivior AI isn't just changing how we do business. It involves a new kind of leadership. On the season one finale of Tech Fluential, we trace the through lines across episodes, revisiting powerful insights from executives who are helping redefine technology leadership for the age of AI.

15:35Learn why tech is now a shared enterprise agenda and how you can drive real, durable value for your organization. Where technology and influence converge, new opportunities can emerge. That's Tech Fluential, a podcast from Deloitte and custom content from WSJ.

15:50Ken Shreve:What are pharmaceuticals? We talked about this one on IABD Live. We've got a blue dot breakout. After some tight action, a setup day in Tuesday's session fueled the stock up over 4%. It added nearly another 4 % today, Ken. Yeah, I mean, probably a setup day yesterday and buyable, and then the stock moved into the 5 % buy zone today. So I think the stock still looks good here. This is an interesting business. This is a company whose expertise is opioid dependent. and still a very, very big problem in the U.S., but they basically do treatments that deal 100 % with opioid dependence, whether it's fentanyl or just other opioid drugs that people are addicted to, and still a big problem.

16:48And Indivior has several, two or three, at least two or three drugs on the market that help people deal with this terrible addiction. And good relative strength line here with a blue dot surging into new high ground and a really nice clean breakout for Indivior. Made a nice move yesterday. Volume hasn't rolled into the stock yet. Picked up the pace a little bit today, but at 41, pivot looks good. and closed at 41.47. So still in a buy zone here and really, really healthy relative strength line here. And Divir, you know, has got a little kind of choppy record of revenue growth. So you'd like to see kind of a more even record of revenue growth.

17:36So not perfect there. It's a little bit choppy, but still, you know, good track record of growth and a company that has executed pretty well. So nice weekly chart here. Company that has trended pretty well here. And, you know, nice breakout taking shape again.

17:55Ken Shreve:Yeah, a nice day and a nice week taking shape indeed. Now over to eBay. Let's check in. After a couple of weeks of tight action right at the 10-week moving average, Ken. So a pullback buying opportunity in the works here. It did close off highs of the day. Let's see what the closing range was. On the weaker side would be my guess, 29%. So under that 40 % to 50 % mark. But this 110 area, a lot of congestion there. Maybe with a little bit more strength, this might be actionable. Yeah, it was looking good earlier in the day. But generally, I like the way this stock is consolidating and holding right at the 50-day line and on the weekly chart, holding at the 10-week line.

18:51eBay is a massive, massive company, and they're really, really doing well. Even though they've gotten very, very big, they have the new going on in that the collectibles business has really turned into a great market for them. their fundamentals their revenue growth has really kicked into into gear i think they did 10 10 billion last year in uh collectible collectibles uh business uh everything from sports cards um uh you know baseball cards trading cards pokemon so the collectibles business is is really big this is why ryan cohen over at uh gamestop is interesting and interested in buying eBay.

19:35I don't think eBay wants anything to do with GameStop, but with GameStop's collectibles market, he thinks there's some synergies here. So we'll see what comes of that. But he was in the news earlier today saying he still wants to pursue a deal. So he's not done. We'll see what eBay has to say about that. But interesting base setting up here. You can see those four weeks in a row of kind of tight action near the 10-week moving average here. So we'll see if the base can complete here. Relative strength line is still holding up near highs. But eBay, you know, it's got that great earning stability rank.

20:18I think the relative strength rating below 80 is probably still keeping it outside of the big cap 20. I know this stock has been in the big cap 20 before. Maybe that relative strength rating will improve if eBay can kind of form the right side of a base here, get that relative strength rating above 80. Maybe it gets back in the big cap 20 again because that earning stability rank of four is pretty solid. Great long-term record of growth here. So we'll see. We'll see if eBay can set up here, but like the way it looks.

20:50Ken Shreve:Yeah. All right. Well, Ken, I think since we already checked in on Micron, we'll do one final check, see if it's still, okay, it's up even more now, up almost 14%. So, let's see if that momentum can continue tomorrow. This may be what the market, maybe what the doctor ordered, Allie. We'll see. We like it. So far, so good. This is a big percentage gain, and we'll see if it translates to tomorrow. Yeah. All right. Well, thank you so much, Ken. We appreciate it. thanks everyone for tuning in that's it from us for today as ken mentioned we will see you back here tomorrow but first you can tune in with the crew starting 10 minutes before the opening bell on ibd live we will of course be breaking down microns earnings reaction other stocks in the memory group also other ai names and the broad market see what the impact is and of course outside of AI where the money is flowing.

21:54Ken Shreve:So we hope you join us starting 10 minutes before the opening bell. Investors.com slash IABD live for all the details. And then of course it's Wednesday. So go over to our podcast episode. The live stream is going to be starting at 5 PM Eastern host. Justin Nielsen is going to be joined by CNBC personality, Jim Leventhal. So that'll be a good one to talk about when to know when to be patient with a stock or to walk away. So that's at 5 p.m. Eastern today, and then we'll see you back here tomorrow. Thanks, everyone. Thank you.

22:59Ken Shreve:you've had open for weeks. Gemini and Chrome is here for it. Ready to make anything online make sense? There's no place like Chrome. Check responses set up required, compatibility and availability varies 18+.