Historically, October months have a scary reputation for big
stock market crashes. But this October was a walk in the
Following a midmonth sell-off in September, the S&P 500
and the Nasdaq composite sharply reversed course and headed
higher in the second week of October. The S&P 500 went on to
set a fresh new high.
The nation's best-performing funds the past thee months have
been gobbling up Internet content providers, such asFacebook (
),SouFun Holdings (
) andYandex (
), in their latest reporting periods.
This week's IBD Industry Snapshot page featured Internet
Content Providers. The group was ranked No. 7 among IBD's 197
industries as of Monday.
Among leading funds, consumer discretionary stocks also found
favor, including retail restaurantsChipotle Mexican Grill (
) andBuffalo Wild Wings (BWLD).
Online leisure travel booking firmsPriceline.com (PCLN)
andCtrip.com (CTRP) have also been strong performers.
Air travel will be more enjoyable now that the Federal
Aviation Administration relaxed rules on the use of small
electronic devices during takeoffs. Airline stocks, such asDelta
Air Lines (DAL) andSpirit Airlines (SAVE), should benefit from
this new ruling.
IBD spotted 117 funds buying Facebook, investing an estimated
$3.5 billion in the social media firm's stock.
The stock has shot up 50% since breaking out in July and is
now testing its 10-week moving average.
On Oct. 30, Facebook reported third-quarter earnings surged
108%, blowing away estimates. Revenue rose 60% to about $2.02
billion. Both were the largest increases in eight quarters.
But CFO David Ebersam noted during a conference call that
daily use by younger teens, while still at high levels, declined
in the quarter. Mobile ad growth -- a key metric -- continued to
On Oct. 14, Facebook acquired Israeli mobile analytics startup
Onavo. The deal will help Facebook speed up its mobile apps.
Gilead Sciences (GILD) came under some selling, as 68 funds
sold shares while 57 bought. The stock is 8% past the buy point
of a late-stage base.
Earnings growth has slowed the past couple of years.