Dow Jones Futures: Key Week For Stock Market Rally; Alibaba Singles’ Day

Dow Jones futures rose Sunday evening, along with S&P 500 futures and Nasdaq futures. It’s a key week for the stock market rally. Last Wednesday the stock market confirmed an uptrend but later pared gains, including big techs such as Apple (AAPL) and Amazon.com (AMZN). Alibaba (BABA) racked up Singles’ Day sales records, but growth slowed. Alibaba Singles’ Day is a big test not only for Alibaba stock and rivals like JD.com (JD) and Pinduoduo (PDD) but of the Chinese economy.




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Dow Jones Futures Today

Dow Jones futures rose 0.4% above fair value. S&P 500 futures was 0.4% higher. Nasdaq 100 futures climbed 0.6%. Remember that Dow futures and other overnight action don’t necessarily translate in actual trading in the next regular session.

Crude futures rose about 1%. OPEC ministers met Sunday as crude futures have quickly fallen into a bear market. Saudi Energy Minister Khalid Al-Falih told reporters the goal is “balance,” with the kingdom cutting oil exports in December. OPEC will meet with Russia on Dec. 6-7.

Meanwhile, private equity firm Veritas Capital and hedge fund Elliott Management will buy Athenahealth (ATHN) for $5.5 billion, or about $135 a share. Athenahealth stock closed Friday at 120.35. Also, German software giant SAP (SAP) will pay $8 billion for Qualtrics, which was poised for an IPO this week. Utah-based Qualtrics track employee and customer experiences and feedback.

Stock Market Rally Update

In Friday’s stock market trading, the major averages fell sharply, though they closed off lows. The Nasdaq composite briefly wiped out all of Wednesday’s gain and did finish below its 200-day line. Apple stock, Amazon stock, Microsoft (MSFT), Facebook (FB) and Google parent Alphabet (GOOGL) all lost about 2%. Netflix (NFLX) tumbled nearly 5%.

The S&P 500 index found support at its long-term average while the Dow Jones bounced off its 50-day. But higher NYSE volume meant the S&P 500 and Dow suffered a distribution day, a sign of institutional selling. Distribution soon after a follow-through day is not ideal. In such cases, a stock market rally is at higher risk of failing. Further high-volume selling this week would raise serious concerns.

Investors have the green light to buy stocks breaking out of bullish bases. But look both ways as you drive back into the stock market. Read The Big Picture after every stock market session to stay in sync with the major averages and leading stocks.

Alibaba Singles’ Day

Alibaba Singles’ Day racked up 213.5 billion yen in sales ($30.7 billion), up 27% in local currency terms vs. 2017. That’s a slowdown from last year’s 39% gain, and below some forecasts. Still, Singles’ Day is bigger than America’s Black Friday and dwarfs Amazon Prime Day. Xiaomi, Apple and Dyson were among the top-selling brands.

Other Chinese online retailers compete on Singles’ Day including JD.com and Pinduoduo, which have strategic alliances with Alibaba archrival Tencent (TCEHY).

Chinese online sales growth slowed sharply in Q3 as China’s economy expanded at its slowest pace in nine years. That’s hurt the Shanghai composite and U.S.-listed Chinese companies such as Alibaba stock, JD.com stock and more. Alibaba stock is 32% off its June 5 peak.

Several Chinese stocks report earnings this week: Tencent, 58.com (WUBA), Autohome (ATHM), YY (YY), Huya (HUYA), NetEase (NTES) and ZTO Express (ZTO).

JD.com and Pinduoduo report earnings the following week.

Chinese stocks’ results and performance this week could influence the U.S. stock market rally.

Top Retail Stocks Report Earnings

Several leading retailers report earnings this week, offering insight into the holiday shopping season.

Wal-Mart (WMT), Nordstrom (JWN), Kohl’s (KSS), Macy’s (M), Canada Goose (GOOS), Home Depot (HD) and Advance Auto Parts (AAP) are all on tap.

Walmart is slightly extended from a late October breakout. Nordstrom and Kohl’s crossed buy points recently but are just below entries now. Advance Auto Parts, which announced an alliance with Walmart last month, is at 21-month highs. Canada Goose and Macy’s are building the right side of patterns while Home Depot is just getting started.

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