Nasdaq Leads Mixed Session; Veeva, DoorDash, Urban Outfitters In Focus

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0:25Ed Carson:Good afternoon, everyone, and welcome to Stock Market Today for Thursday, July 24th. It's Alyssa Coram here. And the NASDAQ led a mixed session today. And joining me now to break down all the key action is my colleague Ed Carson. Ed, what do you have for us today? Yeah, Ali, I'd like to take a look at Viva Systems once again. DoorDash and Urban Outfitters. Okay, we'll take a look at those stocks. But first, let's analyze the major indexes, the NASDAQ up on the day by about two tenths of a percent. So a mild up day there. Even milder was the S &P 500's close up about one tenth of a percent. On the downside, we had the Dow down seven tenths of a percent after a pretty strong day in Wednesday's session And small caps lagged on the day with the Russell down about 1.3%.

1:17Ed Carson:So this was the first full regular trading session after we got that earnings report out last night from Google Parent Alphabet, as well as Tesla. What do you make of where we're at in the market, Ed? Well, luckily, Tesla doesn't have a whole lot of coattails one way or the other. Google didn't have a particularly great close, but it also lifted a lot of other things. We'll look at chips, but it lifted NVIDIA and AMD and Broadcom. So because they talked about raising their spending forecast. So Google had an impact out there, even though you'd look at it, Google wasn't that great. ServiceNow was off its highs, but still was up solidly.

1:52So yeah, the NASDAQ led after lagging for the prior couple of sessions, you know, just sort of stepping back all the major, the NASDAQ and S &P did hit record highs today. The Dow was close to a record high. Yeah, the Russell 2000 didn't have a good day, but it didn't give up all of yesterday's gains. And it's right around five-month high. So, you know, just sort of like, again, it's sort of like moving a sofa where you move one corner, you know, out a bit. Then you move the other side, move that corner, but you're moving it all. That sort of feels like how the market's been. And, you know, it's fine here.

2:26It's like we're at highs. There's not a whole lot of stocks to buy because the market's sort of stretched and a lot of stocks are stretched. But things are acting well. I think, you know, just sort of letting your leaders run, maybe taking profits, especially if earnings are coming up. But, you know, generally things are going well.

2:42Ed Carson:Yeah. And speaking of earnings, it's going to be an even bigger week next weekend. Absolutely. And we'll have all those other names like Microsoft and Meta, Apple, Amazon, and a whole bunch of others. So a really big week. And we'll have that. That'll be in a video that Alexis Garcia and I are doing. That'll be out on Friday morning. Yep. The earnings tidal wave. Can't wait for you guys to break it all down for us on this week's installment of Earnings Cheat Sheet, dropping tomorrow morning on YouTube and investors.com slash videos, as you mentioned, Ed. Okay, let's quickly take a look at the 10-year yield.

3:20Ed Carson:What are we seeing here? Yeah, I mean, it came up a little bit, but backed off highs. So, again, we're just sort of in a range. It's not making a decisive move either way. There hasn't been a lot of economic data this week, and I don't think that data really changed people's minds on anything. Fed will be coming next week. Nobody expects them to do anything. But we'll see. I mean, they may not even give that many hints one way or the other, at least not at the time. But maybe they'll set the stage for a rate cut later this year. All right. We'll have to see. Let's go to SMH. You mentioned chips and the strength there today.

3:54Ed Carson:So SMH up about four-tenths of a percent on the day. But some of those individual movers definitely looking pretty compelling. But to your point, a lot of them are getting stretched here. Yeah, they're mostly stretched, which is why we're not going over them in detail. And yeah, the AI chips generally were like up 1%, 2%, or, you know, especially the big ones. So there were some other names that were not as strong. There's definitely been that dichotomy. But yeah, chips having a solid day today. Yeah. And I mean, over the last year, year and a half, AI, an increasingly important part of a lot of the mega cap tech companies, businesses in particular.

4:31Ed Carson:So tying that back to, okay, what are we expecting for next week in earnings? It's still going to be all about AI, AI, AI. Yeah, absolutely. Okay, let's go to gold. Here's GLD giving back some gains again today. So two days down in a row after a strong start to the week. We are still up some six-tenths of a percent on the day. What are you watching with gold, Ed? Yeah, I mean, gold often, it seems like the time to buy it is when it bounces off of moving averages because they go on runs and then you'll have pullbacks and you don't know how serious it is. Yields rose, maybe there's some more certainty on trade.

5:09So, I mean, some of the factors that were driving gold up again, yeah, I mean, it just sort of goes back and forth. It had a nice run, now it's gone consolidated. So it certainly could go on a run. It's hard to know. But again, there's a lot of names that were still holding up just fine. And so just look for entries. But if you do make entries, do it quickly. You got to be quick at it, I think.

5:29Ed Carson:Yeah, I totally agree. And full disclosure, I do have a small position in gold here. I'm very overweight tech. But, you know, so you got to have a little bit of a counterbalance in there with something. All right, let's take a look at some individual names. Viva. This podcast is brought to you by MassMutual. For 175 years, MassMutual has been there for policy owners, financial professionals, and communities through economic shifts and societal change. In a world that changes fast, strength and stability still matter, especially when it comes to helping people secure their future and protect the ones they love.

6:07Ed Carson:Learn more at MassMutual.com. That's MassMutual.com. I'm Laura Thurow with Baird Private Wealth Management. You've been doing all the right things. Saving, investing, building toward your goals. Healthcare can be a major expense today and an even greater one over time. Tools like long-term care insurance or a smart health savings account strategy can help protect what you've worked so hard to build. Learn more at BairdWealth.com slash WSJGuidebook. First on deck here, flirting with a breakout ed up 1.8 % on the day. This is circling back to us taking a look at it very recently. It's now trying to peak above a buy point.

6:59Yeah, there went a whole lot of breakouts. And this one was awesome. There was a few earnings gap ups, but those are a little bit. I wonder how that's going to hold. This one, we were waiting watching it. It's been trading very tightly. You could have probably bought it. I mean, you could have bought it as it broke out, but you could have bought it a little early. It certainly isn't like failing or anything. It just backed off a little bit. It's just trading so nicely and tightly here after a gap up from sort of a messier, more boring, like a little uncertain base. After earnings gap up, sometimes what you can do is wait if it forms a new base.

7:31And that's exactly what it did. So the relative strength line has improved a little bit after it's had a lot of lackluster few years. It just showed nice action here. If only, if anything, the problem is that it's almost became too obvious because I will honestly say a lot of investors, a lot of growth investors are paying attention to this name. It's not something super crazy, exciting field, but nonetheless, a lot of growth investors looking at it, which sometimes can be counterproductive.

8:00Ed Carson:Yeah, in that software, medical software group. But to your point about, hey, if the market is extending gains, but there aren't a ton of setups out there. I suppose the ones that are setting up right now are getting more attention perhaps than there otherwise would be if there were a plethora of setups out there. I think you're right. Yeah. Okay. Well, we have earnings in over a month, so a little bit more time for this one to potentially work here. So when we see stocks breaking out or presenting entry points, we want to see them add to their gains. I think Toast, an example of a tricky breakout recently, ultimately, at least so far, it's still early, it's working, but it's had some tricky action around the buy point.

8:48Ed Carson:So will we see Viva pull back after this attempted breakout or will it continue to add to its gains? That's the key here. Okay, moving on, we want to take a look at DoorDash. Ed, I was very tempted by this today. Didn't do anything with it. But the stock up 1.3 % today. I think in recent days, arguably the first actionable setup here for DoorDash in quite a while because it really had a nice move from May till just a couple weeks ago. Now a very orderly pullback here and starting to bounce. Yeah, nice action. It was actionable. It's bouncing off the 21-day line on a weekly basis. I think it has a four weeks tight, could be five weeks after this week.

9:36So, you know, it's getting long enough where you can almost treat it like a flat base. You know, often three tight patterns we say are add-on, but this is close to that. The reason I didn't pull the trigger, I mean, one is that earnings are coming up. This may be a dine and dash situation where you have to make a decision, you know, will it make enough room, you know, which is fine. If you're up 5 % and you decide to cash out, that's not the worst thing. But you could also be down 3%. Nothing's going wrong, but you decide to get out. and then the stock moves up. So, you know, the earnings are great on this.

10:07So there's just tremendous growth right now for this company. So that's a real strong thing in its favor. Yeah, that's just the one thing is that is the earnings coming up? Can you get enough time for it? I do think it looked pretty enticing today.

10:23Ed Carson:Yeah, I think ideally it continues to hold in this tight base here, this tight action, maybe even let that 10-week line catch up to it a little bit more. Let's see how far above the 10-week it is right now. It's about 7 % above the 10-week. So if it can continue to go sideways over the next week or so, two weeks heading into earnings, and if it sets up right near that 10-week line, hey, maybe that's an even better setup ahead of earnings if that can then become the launching pad. But that's if the stock does exactly what I want it to do. And the The market doesn't always listen to me, Ed. Well, it should.

11:03Ed Carson:Yeah. All right. So last but not – oh, and this is our stock of the day today. Yes, it is. Thank you. I do want to point that out. For those who have market surge, you can just open up this right panel here in the news tab. You can check out that article for more details. We have a stock of the day. I mean, hence the name, every day. And you can check that out at investors.com. We're trying to flag stocks for investors out there where we're seeing actionable setups and stocks building bases. So we want to flag these for your radar. And let's go to Urban Outfitters. So another potential lesson here, Ed.

11:43I know you always like to mix in stocks that don't necessarily have a good session.

11:50Ed Carson:And there's a reason for including them, and that's to learn lessons, especially for active traders. So this stock broke out to kick off the week, but today down almost 6%. Yeah. I mean, it wasn't this massive volume, but it was pretty heavy selling. It's not clear why some other retailers or, you know, trendy apparel type things were having some tough days, so it's not clear why. I mean, it's back below the pipeline. It's not broken. It could bounce back again, and it's still sort of like near that early entry, as you say. So it's not terrible. It does tell you why you want to try to buy as early as possible.

12:28I mean, you could have bought it yesterday near the top of the buy. Now you're down 6 % in a much more difficult situation. And sometimes you don't have a choice, but this one, there were definitely opportunities to get into this name before that. It's just something to watch out for. And it's just something that you can't, that you have to be paying attention to. You know, this is an area that was looking very strong. A lot of us were paying attention to it. It was a recent stock of the day for good reason. I mean, it was showing some positive action. But we have seen breakouts struggle a little bit.

13:01And when the market goes sideways like this and one part of the market goes up, one goes down, you're going to have that. It's obviously nice early in a market rally when everything is surging. it's almost no matter how bad of a swimmer you are, you're still going to go down. You're still going to go the way you want to go. So it's just something to be aware of that we're still seeing some of these names struggle at times.

13:25Ed Carson:Well said. I mean, I think the powerful stocks obviously don't test you after they are actionable, right? They don't come back to test the buy point. But it actually happens more often than you might think. I want to say somewhat 40 % or so end of stocks will pull back to or even below that breakout area after staging a breakout. So this can happen. So what do you do with that? I mean, it's that risk management piece. And to your point, if you can find an early entry that can help you withstand some of these pullbacks, but it also depends on how it pulls back, right? Is it a sharp decline? Does it look normal or abnormal versus the recent price action?

14:15Ed Carson:What does the volume look like? Where is it in relation to recent price levels, moving averages, all of that? Where does it finish for the week? So all things to think about here. Yeah. And I think at this one, you could have taken some sort of cut, you know, a little bit back today if you wanted to. But I think if it goes to the 21 day line, I think that a point, not only would it be sort of clearly down, you know, pretty significant, but it would be something where you'd probably want to just cut somewhat. I mean, there's still the 50-day, the 10-week. There's things out there. I mean, it's frustrating when stocks, when you do management, then it bounces back, but you have to manage the risk.

14:49It's better to take a small loss and be regretful than to take a big loss and be regretful.

14:55Ed Carson:Yes. Well said. I feel like that should be in a fortune cookie, Ed. I need that fortune cookie a lot. No. All right. Earnings continue. Do we have anything out after the bell that's looking interesting? Just maybe just look at Intel briefly, just to want to see how that one is doing. I think it's had mixed results. They raised some guidance, though. This has been a laggard. So there's that. And there's also Edward Life Sciences and Medical Products. We've had a few of them out there. This one was gapping up. So it might actually get above a buy point. A little bit messy base, but just a couple of names that might be moving tomorrow.

15:36Ed Carson:Great. So we have Edwards up about 7.5 % to 8 % or so, the early reaction there. And then for Intel, shares after the bell currently up about 2.4%. So we'll have to see how it trades in Friday's session. All right. Thank you so much, Ed. We always appreciate your take on things. Have a good one. Thank you, Allie. Thanks, everyone, for tuning in. That is it from us for today, but we will be back with more tomorrow morning on IABD Live. Investors.com slash IABD Live for all the details on our daily morning live stream starting 10 minutes before the opening bell. This week, we will be joined by Dan Fitzpatrick of Stock Market Mentor.

16:22Ed Carson:So always like his perspective on his take on technical analysis and where we're at in the market stocks he's watching. It'll be a good time. We will see you there in the morning. And then we'll see you right back here after the close Friday as well.

17:16Ed Carson:Thank you. See how Medline is woven throughout healthcare and learn more at Medline.com.