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Nasdaq Outpaces On North Korea; This China Internet Name Breaks Out

The tech-heavy Nasdaq surged early Tuesday, while the Dow and S&P 500 posted more modest gains, as the market valued in reports North Korea might be willing to discuss abandoning its nuclear weapons program.

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Micron Technology (MU) and Mylan (MYL) jumped to the head of the Nasdaq 100, General Electric (GE)easily led the Dow and China-based internet play Baozun (BZUN) surged past a buy point in early trade.

The Nasdaq Composite snapped to an early lead, up 0.5%, as Apple (AAPL) swung up 0.7% and Netflix (NFLX) seized an early lead among FANG stock tech leaders. The Dow Jones industrial average gained 0.2%, while S&P 500 futures added 0.1%.

North Korean leader Kim Jong-un told South Korean envoys that his country would be willing to negotiate with the U.S. over exiting its nuclear weapons program and would place a moratorium on all related testing during negotiations, according to the New York Times. North and South Korea also agreed to a summit meeting between Kim and South Korea's Moon Jae-in in late April. The Trump administration had previously said it would consider talks with North Korea if the country conceded to "denuclearization," according to the Washington Post.

Asian markets booked healthy gains Tuesday, with global news agencies citing rising pushback by U.S. lawmakers against broad-brush trade tariffs proposed last week by President Trump as a factor in the rebound. Tokyo's Nikkei 225 surged 1.8%, snapping a four-day sell-off. Hong Kong's Hang Seng index jumped 2.1%. Reports that North Korea may be willing to discuss normalized relations circulated after the close of Asia's markets.


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In Europe, stocks continued to ease from early highs in afternoon trade. Frankfurt's DAX trimmed back to a 3% gain, while London's FTSE 100 advanced 0.7%.

The Nasdaq and S&P 500 are each looking to add a third day — and the Dow industrials a second day — to their rebound from last week's pullback. For the Nasdaq, the turnabout showed at the index's 50-day moving average. That's a positive sign, but the market remains under pressure, with the S&P 500 and Dow remaining below their 50-day levels and institutional backing for the three-week old uptrend uncertain.

GE Heads Dow, Goldman Lifts Micron Target, Baozun Breaks Out

On the Dow, General Electric jumped 1.5%, Intel (INTC) advanced 1.2% at the open. Dow peer Home Depot (HD) dropped more than 1%.

Netflix quickly trimmed its early gain to 0.7%, still leading the way among FANG stocks. The stock hammered out another new high in opening trade, following a 4% gain on Monday, and is working on its fourth-straight weekly advance.

Chip bellwether Micron Technology surged almost 4%, extending Monday's breakout past a 49.99 buy point. Goldman Sachs boosted its price target on the buy-rated stock to 58, from 55. The report cited improving trends in the pricing of DRAM memory chips.

Computer data storage leader NetApp (NTAP) jumped 2% following the report. The stock is working on a fourth straight weekly advance as it climbs the right side of a six-week consolidation. Under its current pattern, NetApp would not form a base nor offer a valid buy point until the end of Friday's session.

China-based online retailer Baozun spiked 18% after reporting a powerful fourth-quarter earnings beat, though sales missed. Still, the company guided first-quarter revenue well above analysts' expectations, and said it anticipates a 50% increase in services revenues during the quarter. The move marked a breakout past a 40.08 buy point in a six-month base pattern.

Another China name, live-streaming services provider YY, dived 6% at the open. The company reported a strong fourth-quarter performance late Monday.  The loss sent shares back to their 10-week moving average.

Drugmaker Mylan sprinted up more than 4%, after Morgan Stanley placed its first overweight rating on the stock, from a three-year stance at equal weight, citing growth prospects and a strong new-product pipeline. Mylan shares are attempting to start up the right side of a two-month consolidation.

Retailers were under early pressure as Ann Taylor, Lane Bryant and DressBarn chain owner Ascena Retail Group (ASNA) slumped 3% after reporting soft fiscal second-quarter results late Monday.

TargetTGT dumped 4% at the open, after dumping nearly 3% in earlier trade. The chain's fourth-quarter earnings fell short of expectations, but reported stronger-than-expected same-store-sales for its fourth quarter. While full-year earnings guidance was also above expectations, the midpoint of first-quarter earnings guidance was below the consensus target.

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