The bulls were decidedly back in charge on Wednesday, pushing the S&P 500 up to the tune of 0.72%. The advance goes against the odds, but hopes for progress on the trade war front are giving rise to investing optimism.
Blue chips like AT&T (NYSE:T) and General Electric (NYSE:GE) led the charge. The telco rallied 3%, with investors increasingly loving the prospect that new activist shareholder Elliott Management will be able to impose change for the better. GE shares, meanwhile, advanced 2.4% in response to news that it would be raising $3 billion by selling its Baker Hughes (NYSE:BHGE) division and using the proceeds to pay down debt.
Holding the market back more than most names was Square (NYSE:SQ), down 2.8%, renewing a selloff that got rolling early last month. The close of $59.20 was the lowest close since January.
As for names worth a closer inspection on Thursday though, take a look at the stock charts of Regions Financial (NYSE:RF), Conagra Brands (NYSE:CAG) and Paypal Holdings (NASDAQ:PYPL). They’re each moving into a curious technical situation.
Paypal Holdings (PYPL)
July was a tough month for most stocks, and PayPal Holdings was no exception to that weakness. The stock seemingly started to bounce back in August though, hinting at a renewal of an incredible rally effort that took shape early on in the year.
That rebound effort was wholeheartedly up-ended last week though, right where one would have expected a pushback to take shape. Now PYPL stock is hanging by a thread, pressuring its last support level anywhere nearby on the horizon.
Conagra Brands (CAG)
The final quarter of last year was a tough one for most stocks, but it was downright miserable for Conagra Brands and its shareholders. Shares of the food company fell by roughly half their value in just a matter of weeks.
That steep selloff may have ultimately served as a capitulation though, at a time when the company (along with the food industry as a whole) found its bearings again. The action since then suggests that at the very least stability is in the cards, and one more good day could put a full-blown rally into motion.
Regions Financial (RF)
Finally, in step with most other bank stocks, Regions Financial shares have soared over the course of the past three weeks. A rebound in interest rates prodded the bulk of the bounceback.
This sort of thrust is enticing, suggesting a huge bullish motion is underway. And, maybe that’s how this one will pan out. It’s worth noting, however, that we’ve seen this sort of effort peter out before, right as it bumped into a technical ceiling that has been encountered just within the past few weeks.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley.