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Stocks Close With Strong Gains; Nvidia Blows Past Q1 Targets

The stock market closed with strong gains Thursday, just off its intraday highs. Graphics-chip maker and top stock Nvidia (NVDA) reported better-than-expected Q1 earnings and sales results after the close in the stock market today, but shares dipped about 3% to around 254 in after-hours trade.

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Shares of Nvidia are extended from a recent double-bottom entry, according to MarketSmith's chart analysis. After rising as much as 1% each Thursday, all three major indexes — the Dow, S&P 500 and Nasdaq — closed with gains of about 0.9% each. The Dow and S&P 500 moved further above their recently reclaimed 50-day moving average lines, while the tech-heavy Nasdaq extended its win streak to five trading sessions.

See the 50-day lines, painted in red, via an IBD chart, as well as the General Market Indicators PDF link at the bottom of the daily Big Picture column. Volume was modestly lower on the NYSE and Nasdaq exchanges vs. the same time Wednesday, according to preliminary data.

Among the Dow stocks, Apple (AAPL) traded higher for a ninth straight day with a 1.4% advance. Shares are extended from a double bottom's 179.04 buy point.

FANG stocks were mixed Thursday, despite the general market's solid gains. On the upside, Facebook (FB) and Alphabet (GOOGL) moved up 1.6% and 1.5%, respectively. Shares of Facebook are etching the right side of a cup-shaped base with a 195.42 buy point.

On the downside, Leaderboard member Amazon.com (AMZN) was flat, while Netflix (NFLX) declined 0.2%. Both are above their 50-day lines after recent tests of that key support level.

Besides Nvidia, hot IPO Casa Systems (CASA) and computer software leader HubSpot (HUBS) reported earnings after the bell. Casa Systems reported non-GAAP EPS of 23 cents a share, a penny better than estimates. Revenue of $89.1 million topped views for $85.7 million, Reuters said. Casa Systems has fallen drastically over the last month and is about 34% off its high. Shares fell 3.4% in late trading.

Meanwhile, HubSpot reported $114.6 million revenue, up 39% vs. a year ago, and 15 cents non-GAAP diluted share EPS. HubSpot is trading right at its 117.70 double-bottom entry. Shares edged up in extended trading.

Top Chinese stock Alibaba (BABA) was approaching a double bottom's potential buy point with a 0.5% gain. The stock is about 3% up from an earlier 201.60 entry.

Inside The IBD 50

TAL Education (TAL) is breaking out above a late-stage cup-shaped base's 41.85 buy point. Later-stage bases are more prone to failure than earlier-stage formation. Shares advanced 5%.

On the downside, Diamondback Energy (FANG) declined nearly 5%. Shares broke out past a short cup-shaped base's 134.70 entry Wednesday.

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