Zale Corp. and Nvidia Corp. are among 10 stocks that may pare recent gains, as technical indicators signal there may be a pullback in the broader equity markets, according to Strategas Research Partners.
Zale, the third-largest U.S. jeweler, and computer-graphics chipmaker Nvidia are among shares that have rallied above their averages over the past 200 days and may be poised for a decline, according to New York-based Strategas. Sterling Bancshares Inc., the Houston-based lender that was acquired by Comerica Inc. this month, is another company in the Standard & Poor’s 1500 Index that has that climbed above this level and may slip.
“With the broader market continuing to look vulnerable for a pullback, we are most concerned with stocks that have gone uncorrected over the last several months and now appear technically stretched,” Christopher Verrone, lead technical analyst at Strategas, wrote in a report dated today.
The S&P 500 ended its longest weekly winning streak since May 2007 last week after Goldman Sachs Group Inc. and Citigroup Inc. failed to beat analysts’ earnings estimates and housing starts slid more than forecast. The index has jumped 22 percent since August as improving earnings and steps to control Europe’s debt crisis have spurred investor optimism in the global economic recovery.
Irving, Texas-based Zale climbed 43 percent on Jan. 12, the most since April 2009, after reporting holiday sales of diamonds surged. Nvidia has advanced 17 percent since Jan. 10 when Intel Corp. agreed to pay $1.5 billion to gain the right to use the Santa Clara, California-based company’s graphic patents and settle a legal dispute.
Riverbed Technology Inc., Atmel Corp., United Rentals Inc., Basic Energy Services Inc., Ion Geophysical Corp., Interactive Intelligence Inc. and LSB Industries Inc. are also at least 50 percent above their 200-day averages and may pare recent increases, Strategas said.
Technical analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index.