These 5 Top Stocks Are Still Buys After Testing Breakouts; S&P 500 Futures

The S&P 500 index and other major averages retreated Thursday as news about the Senate tax legislation and revised House version raised concerns. Several top-rated stocks tested recent buy points, including Netflix ( NFLX ), Apple ( AAPL )-supplier Skyworks Solutions ( SWKS ), Morgan Stanley ( MS ), Monster Beverage ( MNST ) and Splunk (SPLK), but closed above their entry areas.

[ibd-display-video id=2551913 width=50 float=left autostart=true]Futures for the S&P 500 index climbed 0.1% vs. fair value early Friday morning even as Nvidia (NVDA) and Walt Disney (DIS) rose overnight following their quarterly reports. Nasdaq 100 and Dow futures also were up 0.15%.

Netflix

Netflix fell 1.3% to 193.90 in Thursday’s stock market trading . Intraday, the internet TV giant dipped to 190.81, less than 0.5% above a 190.05 buy point. The stock also approached its 50-day moving average.

Netflix broke out in early October on plans to hike subscription fees, then rose further on strong subscriber growth and guidance. But the stock has been moving sideways in recent weeks. Its hit show “House of Cards” has suspended production and dropped star Kevin Spacey amid widespread allegations of sexual misconduct by the actor. Meanwhile, Apple apparently outbid Netflix for a new drama starring Jennifer Aniston and Reese Witherspoon.

Late Thursday, Netflix shares fell fractionally. Disney’s streaming TV service will be priced below Netflix, the media giant said on its post-earnings call.

Skyworks Solutions

The Apple iPhone chipmaker fell as low as 109.53, undercutting a 110.71 buy point intraday for a second straight session. But Skyworks closed at 111.12, down 1.8%.

Skyworks broke out in late October, and has generally held in the buy zone amid its strong earnings and bullish results from Apple, as well as Broadcom (AVGO) making a $130 billion bid for Qualcomm (QCOM).

Morgan Stanley

Morgan Stanley retreated 22 cents to 48.82, but intraday sank to 48.26, below its 50-day moving average and 48.59 entry. Morgan Stanley is down 2.4% this week as bank stocks are among the biggest losers.

Monster Beverage

Monster Beverage had a wild session, falling as low as 56 and rising to 59.88 before settling for 1.2% gain at 58.68. At the low, Monster Beverage fell well below its 57.35 entry point and just undercut its 50-day line. The energy drink maker reported weaker-than-expected earnings late Wednesday, though revenue topped views.

Splunk

The maker of data analytics software fell 0.5% to 70.78 after sinking to 69.36 intraday. That tested a 69.71 buy point cleared on Wednesday. Splunk will report quarterly earnings next week.

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