Dow Jones Futures: Apple Stock, AMD Stock Lead Big Earnings Movers

Dow Jones futures rose modestly late Tuesday, along with S&P 500 futures, while Apple stock lifted Nasdaq futures. Apple earnings headlined a huge night for tech results, with Advanced Micro Devices (AMD), Amgen (AMGN), Illumina (ILMN) and eBay (EBAY) also reporting. Apple (AAPL), AMD stock rose late. Amgen stock and Illumina stock lost ground. EBay stock was little changed.




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Dow Jones Futures Today

Dow Jones futures rose 0.3% vs. fair value. S&P 500 futures advanced 0.25%. Nasdaq 100 futures popped 0.7%. Apple stock is a member of the Dow Jones, S&P 500 index and Nasdaq composite. AMD stock, Amgen stock, Illumina stock and eBay stock are all S&P 500 and Nasdaq components. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular session.

Stock Market Rally Update

The stock market rally continues to consolidate, with the Dow Jones, S&P 500 index and Nasdaq composite pulling back Tuesday but holding above their 50-day moving averages. Tech giants such as Microsoft (MSFT), Amazon.com (AMZN) and Facebook (FB) struggled, while some top software stocks outpaced the market decline. Microsoft, Amazon and Facebook earnings are due later this week.

China trade talks kick off in Washington, D.C., on Wednesday. Hopes for a China trade deal have been a huge driver of the stock market rally. Another stock market catalyst has been a less-hawkish Federal Reserve. The first 2019 Fed meeting ends Wednesday with no expectation of a Fed rate hike. The real question is what policymakers may say about possibly curbing or ending the Fed’s quantitative tightening policy of letting its balance sheet wither.

Apple Earnings Good Enough For Apple Stock

Apple earnings rose 7% to $4.18 a share, up 7% vs. a year earlier and 1 cent above fiscal Q1 views. Revenue fell to $84.3 billion, narrowly topping lowered estimates. Services revenue climbed 19% to $10.9 billion.

Apple sees fiscal Q2 revenue at $55 billion to $59 billion, with the $57 billion midpoint well below the consensus for a 4% drop to $58.83 billion.

Apple stock leapt 5.7% in late trading, as the Apple earnings report and guidance weren’t worse than expected. Shares closed down 1% to 154.68 amid the broader market retreat. Apple stock has rallied somewhat from its post-warning low on Jan. 3 on weak iPhone demand in China, but hasn’t really rebounded either. The relative strength line, which tracks a stock’s performance vs. the S&P 500 index, is barely off lows.

AMD Earnings Mixed But AMD Stock Relieved

AMD earnings met views for 8 cents a share adjusted, while revenue just missed forecasts. The chipmaker also gave weak Q1 revenue guidance, though it offered some hints that conditions could improve later in 2019.

Like Apple, beaten-down AMD stock rose in late trade, surging 9.1%. Keep in mind that shares fell 4.6% to 19.25 on Tuesday, undercutting the 50-day and 200-day lines. On Monday, AMD tumbled 8% as rival Nvidia (NVDA) issued a big revenue warning. Nvidia stock, which fell 14% Monday and 4.6% Tuesday, rose modestly in extended trade.

EBay Earnings, Dividend, Buyback Lift eBay Stock

EBay earnings and revenue topped Q4 views. The struggling e-commerce giant gave mixed 2019 guidance.

EBay also initiated a dividend of 14 cents a share and will boost its buyback program by $4 billion.

EBay stock was little changed in late trade. Shares retreated 1% to 33.69 on Tuesday, closing just below their 200-day line. EBay stock popped last week after activist investor Elliott Capital Management took a stake and urged significant changes.

Amgen Earnings Guidance Sinks Stock

Amgen earnings rose 18% to $3.42 a share, beating views. But the biotech giant sees 2019 EPS and revenue below views.

Amgen stock fell 2.4% late. Shares had edged up 0.1% to 192.11 Tuesday, holding support at the 200-day line. Amgen stock fell 3.4% on Monday (its fifth straight loss), dropping below its 50-day line.

Illumina Earnings Miss, Illumina Stock Falls

Illumina earnings per share fell 7% to $1.32 a share, missing views. Sales just edged past targets for the genomic sequencing machine maker.

Illumina stock sank 2.5% in extended trade. Shares closed down 0.8% at 285.26, with the RS line at its lowest since late July.

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