Market Insights

Today’s the last session in the holiday season. It’s a good time to review some interesting stories that might have escaped your attention in late 2019.

Amazon.com (AMZN) and NIO (NIO) both surged on surprisingly positive news after Christmas. Others, like networking firm Nutanix (NTNX) and biotech Incyte (INCY), rallied a little earlier and have now pulled back.

Let’s start with AMZN. The e-commerce giant announced on December 26 that “this holiday season was record-breaking” with billions of items ordered and tens of millions of its devices purchased. Jeff Bezos’ company also announced the most signups ever for Prime services.

That helped revive attention in a major Nasdaq company that’s gone nowhere for over a year. AMZN is now back above its 200-day moving average and the $1,830-$1,850 range that’s offered resistance since the summer.

And why has the e-commerce giant been dead in the water for so long? One reason has been a potential cost squeeze from President Trump’s tariffs. But now that entire bearish narrative could be unraveling with a “phase one” trade deal coming on January 15.

China’s Other Tesla?

Speaking of China, a Shanghai-based electric car maker is making a huge move this week: NIO.

The company’s vehicle sales rose more than 20 percent last quarter, despite an end to government subsidies. Earnings also beat estimates as margins improved and demand rebounded.

NIO’s rally comes around the same time that Tesla (TSLA) broke out to new highs. Both companies stand to gain by helping reduce smog in China’ huge market. They’re also both highly active for options traders, averaging more than 150,000 contracts per session.

Nutanix’s Turkey Trot

NTNX was another big holiday mover, although its rally came immediately before Thanksgiving. Profit and revenue beat estimates for the second straight quarter. That drove its shares above the 200-day MA for the first time since early in the year.

It also helped trigger a “golden cross.” That’s a potentially bullish pattern when the 50-day MA rises above the 200-day MA.

In case you don’t know this provider of cloud-computing infrastructure, NTNX was something of a growth-stock darling in a couple of years ago. It more than tripled in late 2017, only to crash when management shifted from hardware to software.

But now that transformation may be paying off as the company migrates customers to a subscription billing cycle. This kind of change might sound boring but it can be a big deal. Similar moves fueled major rallies in other companies like Adobe Systems (ADBE) and even Apple (AAPL).

Incyte and CommScope

Biotechnology firm INCY also jumped to a new 52-week high during Thanksgiving week. Its catalyst was excitement before its presentation at the American Society of Hematology (ASH). The company also received a fast-tracked approval process for its Pemigatinib cancer drug.

Earlier the same month, consensus-beating results drove INCY above its 200-day MA. Traders may want to keep an eye on the stock as it tries to hold old peaks in the mid $80s — especially with executives presenting at the J.P. Morgan 38th Annual Healthcare Conference on January 13.

CommScope (COMM) is the last member of our late-2019 “news-based” mover list. The tech company struggled for more than a year as it digested some big acquisitions. However, last quarter’s results suggested it may have turned a corner. It also reorganized into four business units, including one for 5G networking.

Investors will likely view COMM as speculative because of its heavy debt load and mixed financial history. However, it could offer both “growth” and “value” if operations improve further.

In conclusion, the S&P 500 began the new year with new highs. A lot of attention in late 2019 focused on the bigger stories of global trade and recession. But there was still plenty of interesting news at the company level.

Disclaimer: This post is intended for educational purposes only and shouldn’t be considered a recommendation. Options trading may not be suitable to all investors.