DJIA Fails to Join Other Indexes

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The Dow Jones industrial average tried to join the other major indexes in positive territory with minutes left to go in Thursday’s session, as earnings reports remained the focal point.

In M&A news, Oracle (ORCL) struck a deal to acquire enterprise cloud services name NetSuite (N) for $9.3 billion. Shares of Oracle added 0.9%, while NetSuite soared 18.5%.

Meanwhile, buyers were in Leaderboard name (AMZN) ahead of its earnings report after the close. Amazon Shares rose 2.1%.

The Nasdaq composite outperformed again, rising 0.3%. The S&P 500 added 0.2%, while the Dow Jones industrial average was fractionally lower after briefly turning positive. Volume on the NYSE and Nasdaq was tracking slightly lower than Wednesday’s levels in the stock market today.

At the New York Mercantile Exchange, West Texas Intermediate crude oil for September delivery fell nearly 2% to $41.15 a barrel.

Auto parts retailers O’Reilly Automotive (ORLY), AutoZone (AZO) and Advance Auto Parts (AAP) outperformed with gains of 3%-4% apiece. O’Reilly’s earnings report was the catalyst.

Inside the IBD 50, Facebook (FB) was near session lows but still rose 1.5%. The company delivered another solid quarter of growth late Wednesday.

IBD’S TAKE: Facebook sells at a premium valuation, but it’s justified because of huge growth in recent quarters. To learn more about how earnings influence a stock’s price, visit the IBD Learning Center.

Another IBD 50 name, GrubHub (GRUB), soared 25% to a new 52-week high after second-quarter earnings and sales growth accelerated nicely from the first quarter. Earnings jumped 35% from a year earlier to 23 cents a share, 4 cents above views. Sales rose 37% to $120.2 million.

After revisiting a 123.53 flat-base entry, Zimmer Biomet (ZBH) gapped up on strong earnings. Shares rose 4% to 127.75. The stock is still in buy range from the 123.53 entry.