Here is your Investing Action Plan for Wednesday: What you need to know as an investor for the coming day.
XAutoplay: On | OffAs Apple (AAPL) unveils its latest iPhones, it may be easy to miss what other top stocks are doing. Facebook (FB), Boeing (BA), Nvidia (NVDA), Alibaba (BABA) and Square (SQ) are among the stocks to watch. Meanwhile, earnings from organic grocery distributor United Natural Foods (UNFI), Whole Foods’ largest supplier, could offer insight into Amazon’s (AMZN) plans for the upscale supermarket chain.
Stocks To Watch
Facebook and Boeing only recently established new flat bases and are already making good progress.
The social networking leader was down 0.4% at 172.88 in the stock market today, but still near a 175.59 entry. The aerospace giant was flat at 240.65, working its way toward a 246.59 buy point.
Graphics chipmaker Nvidia was also forming a new flat base with a 174.66 potential entry. Shares dipped 0.7% to 167.87.
China internet e-commerce giant Alibaba, meanwhile, is in a rare ascending base with a 177.10 entry. The stock edged up 0.8% to 175.40.
Mobile payment company Square is forming a new cup base with a 28.07 buy point. Shares were down 1.1% at to 27.26.
IBD’S TAKE: What’s an ascending base? It’s characterized by three separate pullbacks — each with higher highs and higher lows — over the course of nine to 16 weeks. But here’s the risk associated with Alibaba’a base.
United Natural Foods To Report
United Natural foods reports fiscal fourth-quarter earnings on Wednesday. Wall Street expects earnings per share to fall 1% to 69 cents, as revenue increases 7% to $2.37 billion, according to Zacks Investment Research.
Shares rallied 0.5% to 36.21 on Tuesday, retaking their 50-day average.
Like others in the grocery business, United Natural Foods, a longtime distributor to Whole Foods, has had to contend with falling food prices that have weakened sales and profits. Also like other grocery businesses, it faces a new world in which Amazon plans to make bigger moves in the space that include lower prices.
Months before Amazon bought Whole Foods, activist investor Jana Partners wanted the grocery chain to manage its supply and distribution needs on its own. After Amazon in June said it would buy Whole Foods, shares of United Natural Foods crashed nearly 11%.
After Amazon completed the acquisition of Whole Foods in August, it began cutting prices on eggs, bananas, ground beef, fish and other items, often with larger-than-normal signage to point out what was cheaper.
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