These charts show the stock market giving investors a lot to like - for now - as the S&P 500 nears 7,000

MarketWatch

By Lawrence G. McMillan

More stocks are making new 52-week highs and volatility is low

Stock-market internal indicators are improving, so the overall picture is still positive. The S&P 500 index SPX continues to make all-time highs, and upside targets as high as 7,300 are in play.

There is support at 6,900, 6,840 and 6,720. There might be minor resistance at 6,985 (this week's highs), but another target would be the +4<SIGMA> "modified Bollinger band," which is currently at 7,030.

The only indicator on a sell signal is the equity-only put-call ratio. There are two of these measures - and the weighted ratio is more bearish as it continues to rise. The standard ratio is moving sideways after having curled upward a couple of weeks ago. As long as these ratios are moving higher, that is a bearish signal for stocks.

Market breadth has improved greatly, and both breadth oscillators are on buy signals. Furthermore, cumulative volume breadth (CVB) has made all-time highs on three recent days, as measured in both "stocks only" terms and NYSE terms. That is clear support for the all-time highs being made by SPX.

New 52-week highs on the NYSE have swamped new 52-week lows. There have been more than 200 new highs on most days over the past two weeks, and so this indicator remains strongly bullish. It would only falter if new lows were to outnumber new highs on two consecutive days.

For the most part, VIX VIX has been subdued - although it did seem to get a little "worried" this week, when SPX sold off. VIX briefly rose above 18, but then pulled back. Mostly importantly, the trend of VIX buy signal for stocks remains in place. Serious worries would arise if VIX begins to rise sharply.

The first sign of that would be if VIX were to return to "spiking" mode (a rise of at least 3.00 points over any three-day period, using closing prices). Another, more worrisome sign would be if VIX were to rise above its 200-day moving average, which is now around 19.

The construct of volatility derivatives remains bullish for stocks. The term structures slope sharply upwards, and the VIX futures are trading with a relatively large premium to VIX. January VIX futures will remain the front month until next Wednesday, when they expire.

Overall, the picture for stocks remains bullish. The indicators are almost all on buy signals, and SPX continues to press to new all-time highs. We will take new signals as they arise, and will continue to roll deeply in-the-money options.

New recommendation: Labcorp Holdings (LH)

A new put-call-ratio buy signal has been issued in LH (LH).

Buy 1 LH (Feb. 20) 260 call in line with the market.

We will hold the call as long as the put-call ratio for LH remains on a buy signal.

New recommendation: Erasca (ERAS)

Erasca shares (ERAS) broke out a week ago and the stock has been on an impressive run. There have been some rumors of a positive drug trial about to be announced, but there is no official news.

Buy 3 ERAS (Feb. 20) 7.5 calls in line with the market.

Follow-up action

All stops are mental closing stops unless otherwise noted.

We are using a standard rolling procedure for our SPY SPY spreads: In any vertical bull or bear spread, if the underlying hits the short strike, then roll the entire spread. That would be roll up in the case of a call bull spread or roll down in the case of a bear put spread. Stay in the same expiration and keep the distance between the strikes the same unless otherwise instructed.

Also, for outright long options, roll if they become 8 points in-the-money.

Long 1 expiring TSEM (TSEM) (Jan. 16) 115 call and short 1 TSEM (Jan. 16) 130 call: Continue to hold without a stop for now. Roll to the TSEM (Feb. 20) 125-145 call bull spread.

Long 1 SPY (Jan. 29) 688 call and short 1 SPY (Jan. 23) 700 call: This position is the trend of VIX buy signal. It would be stopped out if VIX were to close above its 200-day moving average for two consecutive days.

Long 1 BMO (Jun. 18) 130 call and long 1 BMO (Jun. 18) 130 put: Continue to hold this straddle. Roll the calls up if BMO (BMO) trades at $150 and roll the puts down if it trades at $110.

Long 1 SPY (Jan. 30) 690 call and short 1 SPY (Jan. 30) 710 call: This spread was bought on the upside breakout, when SPX closed above 6,920 for two consecutive days. Stop out if SPX closes below 6,840.

Long 2 expiring SPY (Jan. 16) 683 puts: Were bought in line with the breadth and equity-only put-call ratio sell signals. The breadth oscillators have rolled over to buy signals, so only the equity-only put-call ratio remains on a sell signal. So now Buy 1 SPY (Feb. 20) 683 put.

Long 6 AAL (Feb. 20) 15 puts: we will continue to hold as long as the AAL (AAL) put-call ratio is on this sell signal.

Long 1 SPYM (Feb. 20) 81 call and long 1 SPYM (Feb. 20) 81 put: Roll the calls up to the 84 strike if SPYM SPYM trades at $84 or higher. Roll the puts down to the 78 strike if SPYM trades at $78 or lower.

Long 300 shares of BWEN (BWEN): Stop out on a close below $2.85.

All stops are mental closing stops unless otherwise noted.

Send questions to: lmcmillan@optionstrategist.com.

Lawrence G. McMillan is president of McMillan Analysis, a registered investment and commodity trading advisor. McMillan may hold positions in securities recommended in this report, both personally and in client accounts. He is an experienced trader and money manager and is the author of "Options as a Strategic Investment." www.optionstrategist.com

Disclaimer

Disclaimer:

(c)McMillan Analysis Corporation is registered with the SEC as an investment advisor and with the CFTC as a commodity trading advisor. The information in this newsletter has been carefully compiled from sources believed to be reliable, but accuracy and completeness are not guaranteed. The officers or directors of McMillan Analysis Corporation, or accounts managed by such persons may have positions in the securities recommended in the advisory.

-Lawrence G. McMillan

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

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You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

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Eli Lilly, Nvidia among market cap stock movers on Thursday

Investing.com

Thursday’s market has seen swings in various stocks based on news and other factors. Today, stocks like Eli Lilly and Nvidia are showing significant movements. Below are highlights of some of the biggest stock movers, from mega-caps to small caps.

Mega-Cap Movers ($200B+ Market Cap)

Eli Lilly (LLY); FDA delays reviews of Sanofi’s Tzield and Disc Medicine’s bitopertin -3.73%
Applied Materials (AMAT); RBC Capital initiates Applied Materials stock with Outperform rating +7.33%
Lam Research (LRCX); RBC Capital initiates Lam Research stock with Outperform rating +5.52%
Morgan Stanley (MS) +5.7%
Advanced Micro Devices (; RBC Capital initiates AMD stock coverage with Sector Perform rating +5.38%
Goldman Sachs Group (GS) +4.82%
Nvidia (NVDA); RBC Capital initiates Nvidia stock with Outperform rating, $240 target +3.4%
Micron Technology (MU); Micron Technology stock initiated at Outperform by RBC on AI demand +2.46%
Salesforce (CRM) -2.54%

Large-Cap Stock Movers ($10B-$200B Market Cap)

Figure Technology Solutions (FIGR) +15.29%
Penumbra (PEN); Penumbra reports preliminary Q4 revenue growth of over 21% +12.09%
Entegris (ENTG); Entegris stock rating upgraded by UBS on expected technology inflections +10.91%
Talen Energy (TLN) +10.67%
MKS Instruments (MKSI) +10.2%
Nanometrics (ONTO) +9.46%
CoreWeave (CRWV) +9.38%
Kla-tencor (KLAC); KLA stock initiated at Sector Perform by RBC Capital with $1,550 target +8.69%
Reddit (RDDT) -9.16%
Regencell Bioscience Holdings (RGC) -12.71%

Mid-Cap Stock Movers ($2B-$10B Market Cap)

NantKwest (IBRX); ImmunityBio reports 700% annual revenue growth for cancer drug Anktiva +29.97%
Galaxy Digital Holdings (GLXY); Galaxy announces initial closing of debut tokenized CLO at $75 million +16.36%
Erasca (ERAS) +12.76%
Fluence Energy (FLNC) +13.82%
StubHub (STUB) +14.25%
Camtek (CAMT) +11.1%
Applied Opt (AAOI) +11.63%
Calix (CALX) +10.12%
Solaris Oilfield Infrastructure (SEI) +8.12%
The Chefs Warehouse (CHEF) +8.74%

Small-Cap Stock Movers ($300M-$2B Market Cap)

Ambitions Enterprise Management (AHMA) +73.59%
AXT Inc (AXTI) +18.73%
Armada Acquisition I (RZLV) +16.71%
Burning Rock Biotech (BNR) +16.41%
TryHard Holdings (THH) -52.25%
Fast Acquisition Corp II (FBYD) -16.98%
Diginex (DGNX) -17.48%
Caledonia Mining (CMCL) -17.31%
Aimei Health Tech (AFJK) -14.06%
Oxygen Biotherapies (TENX) -11.99%

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This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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Guardant Health (NASDAQ:GH): Strongest Q3 Results from the Testing & Diagnostics Services Group

Stock Story

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Guardant Health and its peers.

The testing and diagnostics services industry plays a crucial role in disease detection, monitoring, and prevention, serving hospitals, clinics, and individual consumers. This sector benefits from stable demand, driven by an aging population, increased prevalence of chronic diseases, and growing awareness of preventive healthcare. Recurring revenue streams come from routine screenings, lab tests, and diagnostic imaging, with reimbursement from Medicare, Medicaid, private insurance, and out-of-pocket payments. However, the industry faces challenges such as pricing pressures, regulatory compliance, and the need for continuous investment in new testing technologies.Looking ahead, industry tailwinds include the expansion of personalized medicine, increased adoption of at-home and rapid diagnostic tests, and advancements in AI-driven diagnostics that enhance accuracy and efficiency. However, headwinds such as reimbursement uncertainties, competition from decentralized testing solutions, and regulatory scrutiny over test validity and cost-effectiveness may impact profitability. Adapting to evolving healthcare models and integrating automation will be key for sustaining growth and maintaining operational efficiency.

The 5 testing & diagnostics services stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.9%.

Luckily, testing & diagnostics services stocks have performed well with share prices up 12.5% on average since the latest earnings results.

Best Q3: Guardant Health

Pioneering the field of "liquid biopsy" with technology that can identify cancer-specific genetic mutations from a simple blood draw, Guardant Health develops blood tests that detect and monitor cancer by analyzing tumor DNA in the bloodstream, helping doctors make treatment decisions without invasive biopsies.

Guardant Health reported revenues of $265.2 million, up 38.5% year on year. This print exceeded analysts’ expectations by 12.6%. Overall, it was an incredible quarter for the company with an impressive beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.

“This was an exceptional quarter for Guardant with broad-based growth across our business,” said Helmy Eltoukhy, co-founder and co-CEO.

Guardant Health pulled off the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 50.2% since reporting and currently trades at $108.55.

We think Guardant Health is a good business, but is it a buy today? Read our full report here, it’s free.

RadNet

With over 350 imaging facilities across seven states and a growing artificial intelligence division, RadNet operates a network of outpatient diagnostic imaging centers across the United States, offering services like MRI, CT scans, PET scans, mammography, and X-rays.

RadNet reported revenues of $522.9 million, up 13.4% year on year, outperforming analysts’ expectations by 6.3%. The business had a strong quarter with a solid beat of analysts’ same-store sales estimates and an impressive beat of analysts’ revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 6.5% since reporting. It currently trades at $73.20.

Weakest Q3: Labcorp

With over 600 million tests performed annually and involvement in 90% of FDA-approved drugs in 2023, Labcorp provides laboratory testing services and drug development solutions to doctors, hospitals, pharmaceutical companies, and patients worldwide.

Labcorp reported revenues of $3.56 billion, up 8.6% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a narrow beat of analysts’ organic revenue estimates.

Labcorp delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 4.9% since the results and currently trades at $262.02.

Read our full analysis of Labcorp’s results here.

Quest

Processing approximately one-third of the adult U.S. population's lab tests annually, Quest Diagnostics provides laboratory testing and diagnostic information services to patients, physicians, hospitals, and other healthcare providers across the United States.

Quest reported revenues of $2.82 billion, up 13.2% year on year. This result topped analysts’ expectations by 3.3%. It was a strong quarter as it also logged an impressive beat of analysts’ revenue estimates and full-year revenue guidance slightly topping analysts’ expectations.

Quest pulled off the highest full-year guidance raise among its peers. The stock is down 1.9% since reporting and currently trades at $186.81.

Read our full, actionable report on Quest here, it’s free.

NeoGenomics

Operating a network of CAP-accredited and CLIA-certified laboratories across the United States and United Kingdom, NeoGenomics provides specialized cancer diagnostic testing services, including genetic analysis, molecular testing, and pathology consultation for oncologists and healthcare providers.

NeoGenomics reported revenues of $187.8 million, up 11.9% year on year. This number beat analysts’ expectations by 2.1%. Overall, it was a strong quarter as it also recorded EPS in line with analysts’ estimates and a solid beat of analysts’ revenue estimates.

NeoGenomics had the weakest full-year guidance update among its peers. The stock is up 25.6% since reporting and currently trades at $13.19.

Read our full, actionable report on NeoGenomics here, it’s free.

Risk Warnings and Disclaimers

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Exxon Mobil, LyondellBasell among market cap stock movers on Wednesday

Investing.com

Information Services Group

Wednesday’s market has seen swings in various stocks based on news and other factors. Today, stocks like Exxon Mobil and LyondellBasell are rallying, while stocks like AppLovin and Ctrip.com International are falling. Below are highlights of some of the biggest stock movers, from mega-caps to small caps.

Mega-Cap Movers ($200B+ Market Cap)

AppLovin (APP); Evercore ISI initiates AppLovin stock with Outperform rating, $835 target; -9.17%
Shopify Inc (SHOP) -6.62%
Oracle Corp (ORCL) -4.98%
Wells Fargo (WFC) -4.83%
Avago Technologies (AVGO) -4.65%
Bank Of America (BAC) -4.13%
Citigroup (C) -3.79%
Lam Research Corp (LRCX) -3.21%
Exxon Mobil (XOM) +3.42%
Philip Morris Intl (PM) +3.03%

Large-Cap Stock Movers ($10B-$200B Market Cap)

Ctrip.com International (TCOM) -17.84%
Unity Software Inc (U) -9.17%
Rivian Automotive (RIVN); Rivian stock rating downgraded to Sell by UBS on high expectations; -9.05%
Lumentum Holdings Inc (LITE) -8.26%
Amkor Technology (AMKR) -7.82%
Intuit (INTU) -6.64%
Airbnb Inc (ABNB) -6.58%
Astera Labs (ALAB) -6.49%
LyondellBasell Industries NV (LYB) +7.42%
Fortress Value Acquisition Corp (MP) +7.41%

Mid-Cap Stock Movers ($2B-$10B Market Cap)

TryHard Holdings (THH); TryHard Holdings secures $25 million equity purchase agreement; -50.5%
Impinj Inc (PI) -11.25%
VPC Impact Acquisition Holdings III (DAVE) -10.7%
Navan Inc (NAVN) -9.91%
Via Transportation Ltd (VIA) -9.53%
Erasca (ERAS) +11.41%
Uranium Energy Corp (UEC) +12.19%
Terns Pharmaceuticals (TERN) +9.78%
Viking Therapeutics Inc (VKTX) +14.66%
Blue Safari Group Acquisition Corp (BTDR) +15.0%

Small-Cap Stock Movers ($300M-$2B Market Cap)

WeShop Holdings Ltd (WSHP) +104.08%
Rich Sparkle Holdings (ANPA) +76.17%
Sizzle Acquisition (CRML) +33.71%
Ambitions Enterprise Management Co (AHMA) +20.02%
AMN Healthcare Services Inc (AMN) +18.08%
Healthcare Capital (DRTS) +16.16%
Bctg Acquisition Corp (TNGX) +15.33%
Cerus Corp (CERS) +14.88%
Longview Acquisition (BFLY) +12.61%
Velo3D (VELO) -12.42%

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This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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AppLovin and Rivian among market cap stock movers on Wednesday

Investing.com

Wednesday’s market has seen swings in various stocks based on news and other factors. Today, stocks like AppLovin and Rivian are experiencing notable movements. Below are highlights of some of the biggest stock movers, from mega-caps to small caps.

Mega-Cap Movers

(Market capitalization of $200 billion USD or higher)

AppLovin (APP); Evercore ISI initiates AppLovin stock with Outperform rating, $835 target; -8.99%
Shopify Inc (SHOP): -5.7%
Wells Fargo (WFC): -5.0%
Bank Of America (BAC): -4.86%
Avago Technologies (AVGO): -4.52%
Oracle Corp (ORCL): -3.05%
Lam Research Corp (LRCX): -2.62%
Nvidia Corp (NVDA); Exclusive-China’s customs agents told Nvidia’s H200 chips are not permitted, sources say; -2.16%
Applied Matls Inc (AMAT): -1.93%
Citigroup (C): -2.55%

Large-Cap Stock Movers

(Market capitalization of $10-$200 billion USD)

Ctrip.com International (TCOM): -15.95%
Rivian Automotive (RIVN); Rivian stock rating downgraded to Sell by UBS on high expectations; -8.44%
Unity Software Inc (U): -7.64%
Astera Labs (ALAB): -5.83%
Affirm Holdings (AFRM); Affirm enhances underwriting with real-time financial data; -5.65%
Credo Technology Holding (CRDO): -5.45%
Biogen Idec Inc (BIIB): -5.43%
AltC Acquisition (OKLO): -4.34%
MicroStrategy Inc (MSTR): +6.7%
Bitmine Immersion Tech (BMNR): +8.09%

Mid-Cap Stock Movers

(Market capitalization of $2-$10 billion USD)

TryHard Holdings (THH); TryHard Holdings secures $25 million equity purchase agreement; -68.88%
Wave Life Sciences Ltd (WVE): +10.62%
TG Therapeutics Inc (TGTX); TG Therapeutics reports $616 million in preliminary 2025 revenue; +8.23%
United States Cellular Corp (AD); Array completes sale of spectrum assets to AT&T for $1.018 billion; +7.64%
Unum Therapeutics Inc (COGT): +7.61%
Erasca (ERAS): +7.53%
Concentrix (CNXC): +8.54%
TTM Technologies (TTMI): +6.01%
Glaukos Corp (GKOS); Glaukos reports 36% revenue growth in Q4, reaffirms 2026 guidance; -8.36%
Fermi America LLC (FRMI): -6.16%

Small-Cap Stock Movers

(Market capitalization of $300 million -$2 billion USD)

Rich Sparkle Holdings (ANPA): +40.95%
Ambitions Enterprise Management Co (AHMA): +14.99%
Oric Pharmaceuticals Inc (ORIC): +13.17%
MSTU (MSTU): +14.35%
Aspirational Consumer Lifestyle (UP): +9.05%
Canaan Inc (CAN); Canaan reports 82% hashrate growth, builds record crypto holdings; +7.3%
Innovative Soluti (ISSC): +7.64%
Velo3D (VELO): -12.67%
BMNU (BMNU): -5.3%

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Clinical Labs Hope to Head Off Looming Medicare Cuts — Barrons.com

Dow Jones Newswires

By Bill Alpert

U.S. House representatives heard the clinical lab industry plead yesterday for a reprieve from looming cuts as large as 15% in what Medicare pays Labcorp Holdings, Quest Diagnostics and cancer-testing specialists like Guardant Health, Exact Sciences, and Natera.

Starting February, a current law will require labs to tell Medicare the rates that private insurers paid for tests back in 2019. Medicare will then cut its own test payments to those levels in 2027.

That will hurt the development of technologies like the genomic tests now used for diagnosing cancer patients and sick infants, said American Clinical Laboratory Association President Susan Van Meter, at a Thursday hearing on Medicare reimbursement rates.

"Sustained cuts of such a large magnitude threaten patient access to lifesaving diagnostics and reduce investment in the next generation of clinical diagnostics," Van Meter told the Health Subcommittee of the House Energy & Commerce Committee.

The February deadline exists because of a law passed 10 years ago that made clinical labs the only healthcare industry whose Medicare rates would match those paid by private insurers. Commercial rates were first surveyed in 2016 and Medicare cut its test payments by up to 10% in each year from 2018 to 2020. The resulting $4 billion in cuts was four times what Congress had projected.

After labs and hospitals complained that Medicare's rates were based on a tiny, unrepresentative sample of the private market, Congress froze Medicare lab rates in 2020. Every year since, the freeze has been extended. The latest extension ends Jan. 31.

A bipartisan group of representatives and senators is pushing a new bill called the Results Act that would extend Medicare's rate freeze until 2028. Beginning in 2029, Medicare test rates would be based on a widely used independent database of commercial payments.

"While today's hearing is an early step towards passing the Results Act, we were encouraged by the bipartisan support during the hearing," wrote Guggenheim analyst Subbu Nambi in a Thursday note.

The most likely way the Results Act will get passed, said Nambi, will be as an attachment to a larger piece of healthcare legislation or a reconciliation bill at the end of the month.

Write to Bill Alpert at william.alpert@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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Revolution Medicines stock surges over 20% on potential AbbVie acquisition

Investing.com

Tango Therapeutics

+1.22%

Advanced Micro Devices

Investing.com -- Revolution Medicines (NASDAQ:RVMD) stock surged 29% before trading was halted twice due to volatility following a Wall Street Journal report that AbbVie (NYSE:ABBV) is in advanced talks to acquire the clinical-stage precision oncology company.

According to people familiar with the matter, AbbVie is nearing a deal that could value Revolution Medicines at approximately $20 billion or more, representing a premium to the company’s current market value of around $16 billion. The acquisition could be finalized soon, barring any last-minute complications.

The news triggered significant gains across the oncology biotech sector, with several of Revolution’s peers seeing substantial price movements. Verastem (NASDAQ:VSTM) jumped 25%, while Tango Therapeutics (NASDAQ:TNGX) climbed 20%, and Erasca (NASDAQ:ERAS) soared 27%.

Revolution Medicines specializes in developing novel targeted therapies for RAS-addicted cancers. The potential acquisition could strengthen AbbVie’s oncology portfolio as it seeks to expand its presence in the precision medicine space.

The companies have not officially confirmed the talks, and it remains unclear exactly how much AbbVie is offering for the biotech firm. Trading in Revolution Medicines shares was halted following the rapid price increase triggered by the report.

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