Wednesday’s gain may not have been enough to carry the S&P 500 index all the way back above its pivotal 50-day moving average line, but the 1.08% rally was enough to get stocks to within striking distance of that feat.
General Electric (NYSE:GE) did much of the heavy lifting, gaining more than 5% after Citigroup suggested its turnaround effort “could be more significant” than the market presently appreciates. Meanwhile, Roku (NASDAQ:ROKU) may have made less of an overall impact, but still logged a bigger gain by rallying nearly 8% after D.A. Davidson analyst Tom Forte upped his target to $185 — the highest on Wall Street.
Despite the rising tide, however, not every name was a winner. American Eagle Outfitters (NYSE:AEO) tumbled more than 11% after reporting same-store sales growth of 2%, versus the 6% analysts were modeling.
As for names worth a closer look as we move into the home stretch of the short trading week, however, take a look at stock charts of Iqvia Holdings (NYSE:IQV), Xilinx (NASDAQ:XLNX) and Norfolk Southern (NYSE:NSC). Here’s why, and what may come next.
Norfolk Southern (NSC)
The past few weeks have been tough ones for railroad stocks. Norfolk Southern has been no exception.
Since the middle of last month, things have seemingly changed. NSC stock appears to have found support — or perhaps made support — before matters got too far out of hand. While there’s reason for optimism, there’s also reason for concern. One more slip-up from here could crack a couple of different key floors and send Norfolk shares off the rails.
Iqvia Holdings (IQV)
It’s been anything but a straight-line effort, but Iqvia Holdings has been a surprisingly rewarding name over the past several years. Buying on the dip has been a savvy strategy’ It still is.
To that end, though some could and would argue that the lull witnessed since late June technically qualifies as a dip since it was stopped at an established technical floor, that may not be the case at all. One stumble could easily break that support level and send IQV stock to a better-established support level. And, the subtle clues suggest that’s the more-likely outcome here.
Finally, with just a quick glance, it seems Xilinx shares have sidestepped trouble. Finding the same floor they found in May, the pullback that started in late July has been halted as of last week.
A closer look at the chart of XLNX stock, however, reveals shares may not be as risk-free as first thought. The stock is finding resistance at a place it can’t afford to face resistance, and that could buy the bears just enough time to shore up their defensive line and force Xilinx to lose ground. One small stumble could get very big, very fast.