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Veeva, YY Lift Stocks As Dow Jones Leads; Is It Time To Sell iQiyi Stock?

The Dow Jones industrial average rose a bit more than 0.7% in stocks today and slightly outperformed the other major averages. Retail, software and Chinese ADRs helped fortify the U.S. market's upside. Veeva Systems (VEEV), one of the newest names in IBD Leaderboard, padded its gains Monday with a 2% rise to as high as 81.58, 4% past a 78.38 new buy point.

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Veeva, the Pleasanton, Calif., medical software firm, is within proper buy range. Volume on Monday expanded 116% above the 50-day average.

Shares have also risen 29% from a 63.10 breakout point within a double-bottom base that formed from Nov. 27, 2017, to Feb. 26. That base is part of a longer consolidation.

Meanwhile, China's popular video streaming service iQiyi (IQ) bolted to a new high of 32.40, up as much as 13.8%, before retreating significantly. The new IPO still closed the session up more than 3%, but it triggered a key offense-type sell signal by reaching a profit target.

Read more about iQiyi's stock action in this New Highs column.

The Nasdaq composite gained nearly 0.7%. The S&P 500 rose more than 0.4% as strength in retail, computer networking and integrated telecom companies offset declines in the solar, oil and gas, rail transport, restaurant and biotech industries.

U.S. crude near-term futures slumped 1.3% to $64.94 and have now fallen more than 11% from a recent peak at $72 a barrel.

The Russell 2000-tracking iShares Russell 2000 ETF (IWM) rose 0.5% and finished at session highs.

Volume fell on both main exchanges vs. Friday.

Williams-Sonoma (WSM) rushed nearly 7% higher, helping to lead the home furnishings industry group. On May 23, the kitchenware and interior goods chain notched its best earnings growth in more than four years as fiscal Q1 earnings climbed 31% to 67 cents a share, walloping the Thomson Reuters consensus estimate by nearly 16%. Sales accelerated 8% higher to $1.20 billion.

Apple (AAPL) rallied 0.8% to 191.83 in dull turnover, yet still managed to clear a four-weeks-tight follow-on entry point. The iPhone giant has already advanced past a 179.04 entry point in a seven-week double bottom.

That double bottom is second stage, suggesting that the stock still has ample room to run. Leading stocks that hop out of fourth- or fifth-stage bases often have more trouble generating profits for investors.

Apple is also a member of IBD Leaderboard. The IBD service currently shows four stocks, including Veeva, near a proper buy zone.

Among China ADRs, YY Inc. (YY) rallied for a fifth straight session as shares lifted 2.5% and made an intraday high of 125.84, the highest level since March. The music-oriented social media network is forming a new cup-style base. The cup's left-side lip is 142.97, and YY is now 16% below that peak.

YY has sported excellent earnings growth (up 30% to 97% on an adjusted basis) over the past six quarters. Sales have jumped 34%, 22%, 29%, 29%, 49% and 56% vs. year-ago levels in the same time frame.

The SMR Rating in IBD Stock Checkup for YY is a perfect A. YY's Composite Rating is also a best-possible 99 on a scale of 1 to 99.

On the downside, Wynn Resorts (WYNN) tanked 5% to 182.83. Volume doubled the stock's 50-day average of 2.24 million shares. The stock is now nearly 6% below a 194.76 entry in a 14-week cup with handle. Wynn broke out and closed above the proper buy point on May 9, but volume grew just 15% above average.

The stock is coming close to triggering the golden rule of investing, which is to keep losses short in all new stock buys, even if the market is in a confirmed uptrend.

Hong Kong-based Galaxy Entertainment is not going to increase its stake in the operator of Las Vegas and Macau-based luxury casinos, according to a report by the website European Gaming.

The yield on the benchmark U.S. Treasury 10-year bond rose sharply for a second straight session after plunging for nearly two weeks. The yield, at 2.94%, still lies well below the May 17 peak of 3.11%.

(For the latest updates in stocks today by IBD, go to the Stock Market Today in the Market Trend section on Investors.com. Also, please follow David Saito-Chung on Twitter at @IBD_DChung for more commentary on breakouts, growth stocks, buy points and financial markets.)

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