S&P 500, Dow, Nasdaq Futures Volatile After Stock Market Plunge; Nvidia, Activision Up | Stock News & Stock Market Analysis

Futures for the S&P 500 index, Dow Jones industrial average and Nasdaq 100 were early Friday morning after Thursday’s heavy losses. Highly rated Nvidia (NVDA) and Activision Blizzard (ATVI) rallied on strong earnings, as did cybersecurity firm FireEye (FEYE).

X The Dow fell 4.15% on Thursday while the S&P 500 index and the Nasdaq composite tumbled to undercut Tuesday’s intraday lows. Along with sweeping damage to leading stocks, the major averages triggered a change in market direction.

Investors should avoid new stock purchases. Raising cash is prudent, and taking at least some profits makes sense. This is a time to be building a watch list, focusing on highly rated companies that are holding up relatively well.

S&P 500 index futures rose 0.6% vs. fair value. Dow futures climbed 0.8%. Nasdaq futures faded to trade down 0.1%. Futures were volatile, but less than in recent overnight sessions as well as the big intraday swings during regular stock market hours this week.

Even if the futures end up signaling big moves or losses for the coming day, that is no guarantee of how the stock market will trade at the open, or how it will close.

Nvidia

Nvidia’s chips are best known for powering PC gaming graphics. But they are are in demand in so many hot tech sectors: cloud data centers, artificial intelligence, self-driving cars and even Bitcoin mining.

Nvidia earnings surged 80% in the fourth quarter as revenue boomed 34%, both easily beating views. Nvidia also guided higher on Q1 revenue.

Nvidia rose 8% late. The stock had closed down 4.9% in Thursday’s stock market trading.

Nvidia’s relative strength line, which tracks a stock’s performance vs. the S&P 500 index, is near record highs. The RS line could jump along with the stock Friday, so Nvidia is one to watch going forward.

Activision Blizzard

Activision, which followed a well-received report from Electronic Arts (EA) last week and a poorly received report from Take-Two Interactive (TTWO) late Wednesday, reported better-than-expected earnings for the holiday quarter.

Shares of the video game maker rose fractionally overnight. The stock had tumbled 5.2% to 65.83 during Thursday’s session, falling below a recent buy point and its 50-day moving average. That came amid the stock market sell-off and an 11.7% plunge from Take-Two on its weak sales and guidance. EA also plunged 5.3% on Thursday, falling well below its recent breakout point.

FireEye

The cybersecurity firm unexpectedly swung to 1-cent per-share profit vs. views for a 1-cent loss. Revenue also topped views, while FireEye also guided higher for current-quarter revenue.

FireEye shares jumped 11% in late trade. Shares had dipped 5 cents to 14.12 in Thursday’s session, finding resistance at its 50-day moving average.

OTHER KEY MARKET COVERAGE:

Why The Stock Market Sold Off, And What You Should Do Now

The Big Picture: The Market Outlook Changes

How Do You Spot A Major Stock Market Top? Here’s The Easy Way

Stocks Dive, But S&P 500 Earnings Beating Estimates By Most In Years

Did Congress, Trump Just Crush The Stock Market Rebound?

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Originally posted 2018-02-09 09:54:44.

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