Dow S&P 500 Nasdaq Edge Lower; New Issue Dropbox Plunges

Several growth stocks were under heavy selling pressure Friday afternoon, but the Nasdaq composite held up relatively well, falling just 0.1%.

The S&P 500 was mostly flat, while the Dow Jones industrial average eased 0.2%. Volume on the Nasdaq was tracking lower than Thursday's level. NYSE volume was on pace to be slightly higher.

JPMorgan (JPM) reversed lower even as earnings and sales topped expectations. Shares were down 3%. Citigroup (C) also gave back an early gain after reporting earnings. Shares fell 2%.

Top Growth Stocks Pressured

In the stock market today, Zillow (Z) gapped below the 50-day moving average on reports the company is getting into the business of buying and flipping homes. Research firm Craig-Hallum downgraded shares to hold from buy. Shares plunged 9% in huge volume.

Arista Networks (ANET) dived 10% after Cleveland Research downgraded shares to neutral from buy and lowered its fiscal 2018 earnings estimate.

New issue Dropbox (DBX) plunged nearly 9% after Nomura Instinet initiated coverage with a reduce rating and 21 price target. Dropbox tried to clear a short IPO base with a 34.47 buy point Thursday but came up short.

Bitcoin Up Again

After soaring 14% Thursday, Bitcoin topped the $8,100 level Friday, rising another 2.5%.

Bitcoin Investment Trust (GBTC) gained nearly 6% after jumping nearly 9% Thursday. It reclaimed the 200-day moving average Thursday, but it's still more than 60% off its recent high. The 50-day moving average around 14.50 is a potential resistance level to watch. Other bitcoin-related issues rose Friday, including Riot Blockchain (RIOT) and Marathon Patent Group (MARA), but Overstock.com (OSTK) reversed lower.

Chip Names In The News

Meanwhile, a couple of high-profile semiconductor names made early headlines. Shares of Broadcom (AVGO) jumped nearly 3% after the company announced a $12 billion share buyback. Broadcom had turned into a laggard in the chip space with a poor Relative Price Strength Rating of 42 and ugly Accumulation/Distribution Rating of E.

Qualcomm (QCOM) added more than 1% on news former chairman Paul Jacobs is in talks with investors regarding a bid to take Qualcomm private. Broadcom tried to acquire Qualcomm for $120 billion in a hostile takeover, but President Trump nixed the deal in March because of concerns about national security risks.

Inside the IBD 50, growth stock Netflix (NFLX) rose nearly 2%. Earnings from the Leaderboard name are due Monday after the close. Earnings are expected to jump 60% from a year ago, with sales up 40% to $3.69 billion.

China-based growth stocks also took hits in the IBD 50, with Baozun (BZUN), Weibo (WB), TAL Education (TAL) and Daqo New Energy (DQ) showing losses ranging from 2% to 8%.

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