TradingMarkets 7 Stocks You Need to Know for Monday: ADSK, MU, NSM, WMT, DOW, WFC, INTC
Oversold conditions and three straight lower closes in markets like the S&P 500 and the Dow industrials led to strong buying on Friday. Heading into trading on Monday, technology stocks – especially semiconductors – will have been among the biggest beneficiaries of the oversold bounce.
Pullbacks in top stocks will be fewer and far between when trading begins on Monday. Shares of ^MCD^ closed lower for a third session out of the past four ahead of trading on Monday, while shares of First Solar ^FLSR^ have closed lower for four out of the past five. Both stocks are currently oversold above the 200-day moving average.
Here are 7 Stocks You Need to Know for Monday
Among the better performing stocks of the Nasdaq 100 were shares of ^ADSK^, which gained more than 5% on Friday, following through to the upside after a two-day pullback that took the stock into oversold territory above the 200-day moving average.
Semiconductor stocks, many of which had become oversold over the past few days, rallied into strength on Friday. Up more than 4% and 3% respectively were semiconductor mainstays like ^MU^ and ^NSM^ (below).
Buyers initially stepped into the market for NSM on Thursday, after the stock had closed lower for three days and was on the verge of oversold territory above the 200-day moving average.
^WMT^ closed lower again on Friday, the stock’s second consecutive close below the 200-day moving average. Friday marked the first time the stock had closed below the 200-day since September 2010.
Four down days in a row and two closes in oversold territory above the 200-day moving average were enough to bring out the buyers in ^DOW^ (below) on Friday.
DOW gained more than 2% ahead of trading on Monday and is still below its 5-day moving average.
Shares of ^WFC^ (below) advanced by more than 3% in Friday’s session.
Wells Fargo, which we highlighted earlier this week in 7 Stocks You Need to Know, pulled back for six days out of seven before Friday’s big bounce higher.
Not to be left out of the rally in semiconductor stocks, shares of ^INTC^ closed higher for a second day in a row, gaining more than 2% ahead of trading on Monday.
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David Penn is Editor in Chief of TradingMarkets.com