Adobe Stock, Starbucks Stock, Costco Stock Move On Earnings| Investor’s Business Daily

Dow Jones futures fell sharply late Thursday, along with S&P 500 futures and Nasdaq futures, as Chinese economic data missed expectations. Adobe (ADBE), Starbucks (SBUX) and Costco Wholesale (COST) were notable movers in extended trade. Adobe earnings topped, but guidance was light. Starbucks cut its long-term growth target. Costco earnings narrowly missed. Adobe stock, Starbucks stock and Costco stock, which have been setting up new buy points, were all retreating overnight.


Adobe stock is on the IBD 50 list and boasts a best-possible 99 IBD Composite Rating. Starbucks stock has a 97 Composite Rating, while Costco stock has a good but not great 88 CR.

Dow Jones Futures Today

Dow Jones futures fell 0.75% vs. fair value. S&P 500 futures sank 0.85%. Nasdaq 100 futures slid 1.1%. Asian markets also retreated.

China Data Signal Slowing Economy

China industrial production rose 5.4% vs. a year earlier in November, while retail sales grew 8.1%, both missing views. Urban fixed-asset investment climbed 5.9% in the first 11 months of the year, slightly above views. China’s economy has slowed significantly in 2018, a significant head wind for stocks and commodities.

Remember that overnight action in Dow futures, Adobe stock and elsewhere doesn’t necessarily translate into actual trading in the next regular session. That’s been particularly true in recent weeks, as Dow Jones futures swing up and down overnight followed by even more volatile market action the next day.

In Thursday’s stock market, a morning rally quickly faded. The Dow Jones rose 0.3%, but the S&P 500 index closed just below break-even and the Nasdaq composite lost 0.4%.

Adobe Earnings

Adobe earnings and revenue topped fiscal fourth-quarter estimates late Thursday. But the digital media and marketing software firm gave weak Q1 and full-year 2019 earnings guidance.

Adobe stock was volatile in extended action, falling 1.2%. Shares closed up 1% to 248.08. Adobe stock is close to a handle buy point of 260.82 and is just above its 50-day and 200-day moving averages.

The relative strength line, which tracks a stock’s performance vs. the S&P 500 index, is already hitting new highs, a bullish sign.

Starbucks Earnings

Starbucks didn’t report quarterly results late Thursday, but the coffee giant did cut its long-term growth forecast. The Starbucks earnings target of at least 10% non-GAAP growth is below prior forecasts for 12% or more. Starbucks also sees long-term same-store sales growth in China of 1%-3%.

Starbucks stock fell 3.1% late. In the regular session, shares rose 1.2% to 66.91, as the company outlined several initiatives, including alliances with UberEats and Alibaba (BABA).

Starbucks stock is working on a flat base after running up in early November following the last Starbucks earnings report. Assuming shares hold in the recent range for one more day, Starbucks stock will have a new 69.08 buy point.

The RS line finished Thursday close to record highs, moving sideways after a strong rebound.

Starbucks has been an IBD Leaderboard stock for several weeks.

Costco Earnings

Costco earnings missed by a penny, excluding a variety of items. Revenue rose 10%, topping views. Costco stock fell 2.6% late.

Shares have been hitting resistance at their 50-day line, closing down 0.6% to 226.51. But the RS line is right at record highs.

Cisco stock is in a flat base with a 245.26 flat-base buy point.


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Originally posted 2019-09-19 23:28:00.


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