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Stocks Book A Loss; Nike Beats Resistance; Plastics Leaders Rally

The major index pared losses in afternoon trading but still closed lower Wednesday — the second decline in three days.

X The tech-rich Nasdaq composite skidded 0.5% lower, although it ended well off its early lows, as Facebook (FB) and Netflix (NFLX) each fell roughly 1%. The S&P 500 dropped 0.5%, weighed by heavy earnings-related losses from Chipotle Mexican Grill (CMG) and Edwards Lifesciences (EW).

The Dow Jones industrial average sloughed off 0.5% with Boeing (BA) posting its deepest loss, one of eight Dow names dropping more than 1%.

Preliminary data showed volume was higher on both the NYSE and the Nasdaq vs. Tuesday's trade. Investors focused on Wednesday's mixed earnings reports and concerns about tax reform in Washington, largely ignoring positive durable-goods-orders data and a spike in new-home sales for September.

Nike (NKE) soared 2.5% to lead the Dow, after CEO Mark Parker plotted a course of high-single-digit revenue growth and EPS growth in the midteens over the next five years. The gain punched Nike shares back above their 40-week moving average, and up the right side of a two-month consolidation.

Boeing was the Dow's sinker, down nearly 3% despite reporting above-forecast third-quarter earnings and guidance. But revenue was lighter than hoped for, and a charge for its KC-46 aerial refueling tanker program slimmed after-tax margins. The move pulled shares back from Tuesday's high, and set the stock on track for its first decline in four weeks.

China-based names came under some heavy selling pressure, with Jupai Holdings (JP) diving 10%, Weibo (WB) down 6%, and TAL Education (TAL) falling almost 5%. Retail giant JD.com (JD) shed 3%, while diversified internet play Alibaba Group (BABA) fell 2% and search engine leader Baidu (BIDU) held to a 0.4% decline.

Positive earnings results reported late Tuesday sent specialty plastic makers into a rally. Kraton (KRA) vaulted 12% to put shares within pennies of their April 2011 record. The thinly traded Kraton is now up 16% in October and extended from a 37.60 buy point.

Ohio-based peer PolyOne (POL) bagged a 6% gain after topping analysts' Q3 forecasts. That lifted the stock out of buy range above a flat-base buy point of 40.98. PolyOne had received an IBD Ratings Upgrade in September.

IBD 50 stock Grubhub (GRUB) delivered an 11% gain after earnings, revenue and guidance topped expectations for the third quarter. The gain hefted shares back above their 10-week moving average, to just a fraction below a 47.71 buy point in a six-week flat base.

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