Thanks to a spurt of panic buying in the overnight futures market, U.S. equities gapped higher at the open on Thursday and are continuing to run higher. As a result, the Nasdaq Composite has pushed up and over its prior high of 6,170 set last week to cross the 6,200-level for the first time ever.
There is no specific catalyst for the move. If anything, headwinds are building with Organization of the Petroleum Exporting Countries’ decision to extend its production freeze for nine months (but not deepen the output cuts), disappointing energy markets and sending crude oil lower.
The Federal Reserve’s latest meeting minutes all but confirmed a June rate hike and a balance sheet tapering likely in September. And the economic data continues to disappoint.
Moreover, breadth remains narrow with just 67% of S&P 500 stocks in uptrends vs. a high of nearly 80% back in March.
But thanks to a surge in key big-tech stocks, the Nasdaq couldn’t care less. Here are seven stocks driving the rally.
Tech Stocks to Buy: Facebook Inc (FB)
Facebook Inc (NASDAQ:FB) shares have returned to their early May high near $152.50, bouncing nicely off of their 50-day moving average to continue the powerful year-to-date uptrend that has resulted in a total gain of more than 32% and a tripling from the late 2013 consolidation range.
Despite some warnings from management about a slowdown in FB ad sales and a need to increase investment spending, user metrics remain strong and excitement is building for new initiatives including original videos, which are set to debut at the end of summer.
The company will next report results on August 2. Analysts are looking for earnings of $1.13 per share on revenues of $9 billion. On May 4, the FB reported a 73% increase in earnings-per-share, year-over-year, to $1.04 on a 49% jump in revenue. Daily active users increased 18% from the year prior.
Tech Stocks to Buy: Alphabet Inc (GOOG)
Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL) shares are going parabolic, rising over its upper Bollinger Band to exceed the bounds of its two-month uptrend channel. This move ends a broad three-year-long consolidation range near $800 with the gapped move over $900 in late April. GOOGL shares are closing in fast on the $1,000-level.
The company will next report results on July 27 after the close. Analysts are looking for earnings of $8.35 per share on revenues of $20.6 billion.
On April 27, GOOGL reported a top- and bottom-line beat with earnings of $7.73 per share beating estimates by 35 cents on a 22% increase in revenues from last year.
Tech Stocks to Buy: Amazon.com, Inc. (AMZN)
Amazon.com, Inc. (NASDAQ:AMZN) shares are also closing in fast on the $1,000-level for the first time — hitting an intra-day high of $999 in trading on Thursday. Shares are up by roughly a third from their early January low, an impressive surge over just six months, as investors reward the company for its ongoing success in crushing traditional retailers (which are suffering horrid share price declines). RBC Capital is looking for a price target of $1,100 for AMZN.
The company will next report results on July 27 after the close. Analysts are looking for earnings of $1.38 per share on revenues of $37 billion. The company reported a top- and bottom-line beat on April 27 with earnings of $1.48 per share, beating estimates by 38 cents. Revenues rose 22.6% year-over-year.
Tech Stocks to Buy: Microsoft Corporation (MSFT)
Microsoft Corporation (NASDAQ:MSFT) shares are surging to new highs, closing in on the $70-a-share level as it breaks free of a two-month consolidation range. MSFT shares are up nearly 12% so far this year amid ongoing success in the cloud, software-as-a-service, hardware and excitement over new initiatives like the HoloLens.
The company will next report results on July 27. Analysts are looking for earnings of 71 cents per share on revenues of $24.4 billion. The company reported better-than-expected earnings of 73 cents per share on April 27, 3 cents ahead of estimates, on a 6.3% increase in revenue.
Tech Stocks to Buy: Apple Inc. (AAPL)
Apple Inc. (NASDAQ:AAPL) shares are consolidating just below the $155-level, readying a push to $160 and beyond as the tech giant’s 20-day moving average continues to arc higher. AAPL shares are up 33% so far this year and picking up momentum as hype builds for the upcoming launch of the iPhone 8 and new iPads later this year.
The slump of 2015-2016 seems like a distant memory, with the stock price up 70%+ from the May 2016 low.
The company will next report results on August 1 after the close. Analysts are looking for earnings of $1.58 per share on revenues of $44.5 billion. On May 2, the company reported mixed results with earnings of $2.10 per share beating estimate by 8 cents on a 4.6% rise in revenues, but iPhone sales missed estimates.
Tech Stocks to Buy: Netflix, Inc. (NFLX)
Netflix, Inc. (NASDAQ:NFLX) shares are gapping higher on Thursday, jumping clear of its prior high of $160 into clear air. NFLX shares are up nearly 65% from their pre-election low in September. Hype is building for new content, including the upcoming release of House of Cards season five and Stranger Things season two.
The company will next report results on July 17 after the close. Analysts are looking for earnings of 16 cents per share on revenues of $2.76 billion. Shares initially traded lower after reporting earnings of 40 cents per share on a 35% increase in revenue as net subscriber additions came in at 4.95 million vs. the 5.2 million prior guidance.
Tech Stocks to Buy: Tesla Inc (TSLA)
Tesla Inc (NASDAQ:TSLA) shares look ready to move up and out of a two-month consolidation range near $310. TSLA stock price is up a whopping 75% from its early December low and just recently exceeded its 2014 high of $291.42 as the Model 3 launch approaches, the solar roof debuts, and CEO Elon Musk teases new products such as a pickup truck, semi-truck and small crossover vehicle.
The company will next report results on August 2 after the close. Analysts are looking for a loss of $1.71 per share on revenues of $2.6 billion. Shares suffered a spill earlier this month after reporting quarterly results — and a 69% increase in deliveries — on worries the cheaper Model 3 might cannibalize sales of the more expensive Model S.
Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. A two-week and four-week free trial offer has been extended to Investorplace readers. Redeem by clicking the links above.