Apple ( AAPL ) gained ground and was on the verge of climbing back above a 156.75 buy point as the iPhone giant helped bump the major indexes higher in afternoon trading Wednesday.
[ibd-display-video id=2350309 width=50 float=left autostart=true]Apple had broken out of an 11-week flat base at 156.75 on Aug. 2 following a solid fiscal third quarter. (EPS rose 18% and revenue 7%, the biggest top-line increase in seven quarters.) The stock is now forming a new flat base with a 165.04 buy point.
The Nasdaq composite edged 0.1% higher and is holding on to last week’s gain of more than 1.4%. The S&P 500 and Dow Jones industrial average were both up less than 0.1%.
The Nasdaq 100 also rose 0.1%. The Russell 2000 was virtually flat. Volume is running mildly lower vs. the same time Tuesday on both main exchanges.
Apple had not gained a lot of ground after its Aug. 2 breakout before falling back the proper entry and below the 50-day moving average. While the rise back above the 156.75 is not an ideal entry right now, investors could wait to see if the stock retakes the 50-day moving average in strong volume.
Earnings had dropped 10% in the fiscal year ended in September 2016 on an 8% slump in revenue.
Fellow Nasdaq component Alphabet ( GOOGL ), which has launched a major advertising campaign for its new smart speaker called Google Home Mini, rose more than 1% and breached the 1,000 level for the first time since July 24. That gain places the megacap internet search giant in a good position to potentially break out from a new flat base with a 1,006.29 buy point.
Alphabet’s earnings have risen 27%, 7%, 28%, and 27% vs. year-ago levels in the past four quarters. The Street expects Q3 profit to rise 15%.
Elsewhere, Delta Air Lines ( DAL ) ramped up 1% to 53.26 in fast turnover and added more work to the right side of a new base. The Atlanta-based air transport giant reported a 6% rise in third-quarter revenue to $11.06 billion, matching the biggest…