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Stocks Pare Gains; Amazon.com, Netflix Trim Losses

The stock market pared gains in afternoon trading Wednesday while Netflix (NFLX) and Microsoft (MSFT) saw some positives in their charts.

The Nasdaq composite had climbed 0.4% but was up only 0.2%. The S&P 500 also trimmed its gain to 0.2%. The small-cap Russell 2000 was up 0.4%, continuing its ascent after touching the 200-day moving average last week.

The Dow Jones industrial average added 0.2%. Credit card companies Visa (V) and American Express (AXP) were Dow components reaching new highs. Visa is extended but AmEx is in a new buy area after finding support in a pullback to the 50-day moving average.

Microsoft is in a similar chart area as the personal technology and software giant also climbed back above its 72.99 buy point from the July 14 breakout to new highs.

Some of the Nasdaq's other top stocks saw some positive moves. Amazon.com (AMZN) dropped erased losses was off 0.4%. President Trump used his Twitter account to blast the online retailer. "Amazon is doing great damage to tax paying retailers," the president groused.

Netflix also pared losses and, more significantly, started to rebound as soon as it touched the 50-day moving average. While that's a positive sign, it's not a great area at which to buy Netflix shares because the stock remains below its best entry at 176.12. Netflix seemed to fall early on news that Apple (AAPL) will spend heavily on original-content video.

Metals, mining and some retail stocks were leading the market. Aluminum and other metal prices surged on supply problems and news that China is cracking down on illegal aluminum mining. Also, Senate Minority Leader Chuck Schumer urged action against cheap steel and aluminum imports from China.

Southern Copper (SCCO) climbed back above the 39.60 buy point of a saucer pattern. Volume was about 75% more than average.

The energy sector lagged. The price of crude oil fell 27 cents to $47.28 a barrel as the $50 level proves to be a formidable barrier.

Supernus Pharmaceuticals (SUPN) broke out of a flat base, clearing the 45.05 buy point in heavy trading. The stock was added to IBD Leaderboard.

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