Dow Jones Futures: Top Stocks Chipotle, iRobot, Match Soar On Earnings

Dow Jones futures fell modestly late Wednesday, along with S&P 500 futures and Nasdaq futures, after the current stock market rally hit a speed bump Wednesday. Meanwhile, Chipotle Mexican Grill (CMG), Match Group (MTCH), iRobot (IRBT), New Relic (NEWR)and O’Reilly Automotive (ORLY) are top stocks moving after hours on earnings. Chipotle stock, Match stock and O’Reilly stock signaled moves past buy points. iRobot stock and O’Reilly stock jumped just short of bullish entries, while New Relic stock gave up gains.




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Dow Jones Futures Today

Dow Jones futures dipped 0.2% vs. fair value. S&P 500 futures lost 0.2%. Nasdaq 100 futures fell 0.3%. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular session.

Current Stock Market Rally

The current stock market rally took a breather Wednesday. The Dow Jones fell 0.1%, the S&P 500 index shed 0.2%, and the Nasdaq composite lost 0.4%. The S&P 500 index and Nasdaq composite are coming up on their 200-day lines and their Dec. 3 short-term peaks. These are logical areas for the current stock market rally to pause for a few days or weeks. But it doesn’t have to. The stock market could run right through these key levels and set its sights on record highs. Or the major averages could consolidate just above these levels. That’s what they did after clearing their 50-day lines in January.

Still, investors should be mindful as they make investments in this tradable stock market rally. Don’t get overextended with your portfolio and be careful not to pyramid too high. Be extra alert for recent breakouts pulling back.

Top Stocks Moving On Earnings

New Relic stock boasts a best-possible IBD Composite Rating of 99. Match stock has a 97 Composite Rating and O’Reilly stock a 96. IRobot stock has a 95 CR. Chipotle stock has a Composite Rating of 85, which is good but far from great. That largely reflects weak Chipotle earnings in past years due to the fallout from foodborne-illness outbreaks.

Chipotle Earnings

Chipotle earnings jumped 28% to $1.73 a share, while digital sales skyrocketed 66%. Analysts expected Chipotle earnings of $1.38 a share.

Chipotle stock shot up 10% to 580.42 late, signaling a move well past an alternative entry of 544.

Shares had already cleared a 501.08 double-bottom buy point last month, and had closed Wednesday just in range from that entry. But on Jan. 25, Chipotle hit a 52-week high of 543.90, just above the left side of the base, then edged lower. That’s created a high-handle alternative buy point at 544.

If Chipotle stock gaps above the 5% chase zone from that alternative entry, investors could still buy the breakaway gap.

IRobot Earnings

IRobot earnings cleaned up, soaring 56% to 84 cents a share. Revenue for the Roomba vacuum-cleaner maker climbed 18% to $384.7 million. Analysts expected iRobot earnings of 50 cents per share on sales of $381 million.

IRobot stock leapt 13% to 101.15 late. That would break a downward trendline and move the stock to just below a 103.73 double-bottom buy point. IRobot stock rose 0.4% to 89.42 on Wednesday.

The relative strength line, which tracks a stock’s performance vs. the S&P 500 index, drifted lower during the stock market correction, continuing in the current stock market rally. That’s not a great sign, though the RS line should pop with iRobot stock on Thursday.

Match Earnings

Match earnings jumped 117% to 39 cents a share, with revenue up 21% to $457 million. Analysts expected Match earnings of 38 cents and sales of $448.4 million. Its Tinder dating app added 230,000 customers, in line with recently lowered views.

Match stock jumped 12% to 59.60 late. That would push Match stock to just above a 58.10 buy point from a cup base. Shares have held up well in recent days, despite analyst downgrades leading into the Match earnings report. However, the cup base was 45% deep. Breakouts from bases that are more than 40% deep are less likely to succeed.

New Relic Earnings

New Relic earnings soared 280% to an adjusted 19 cents a share as revenue grew 35% to $124 million. Analysts expected New Relic earnings of 12 cents and sales of $120 million.

The data analytics software maker sees adjusted Q1 EPS of 4 to 6 cents on sales of $126.5 million to $128.5 million. Wall Street expected New Relic earnings of 3 cents on revenue of $126 million.

New Relic stock just edged higher after erasing an after-hours move above 110. Shares are closing on a 114.88 consolidation buy point. New Relic stock rose 1% to 106.24 on Wednesday.

O’Reilly Earnings

O’Reilly earnings of $3.72 a share and sales of $2.31 billion both slightly missed views. Also, O’Reilly earnings guidance for Q1 and 2019 was light. But the auto parts retailer gave solid guidance on same-store sales and gross margins.

O’Reilly stock, after briefly hitting 366 after hours, climbed 2.5% to 362.50. That’s just below a 363.30 flat-base buy point. Shares held up during the stock market correction but have continued to go sideways in the current stock market rally. The RS line has drifted lower as a result.

YOU ALSO MIGHT LIKE:

The Big Picture: Bulls Still Confident Despite Moderate Losses

After Hours Trading: Here’s What It Is And Why It Can Help You In The Stock Market

Dow Jones Futures: This Often Happens After A Sharp Stock Market Correction

Current Stock Market Rally: A New, Bullish Phase For Investors

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