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Apple, Amazon Give AA Earnings Battery Charge To S&P 500, Nasdaq Futures | Stock News & Stock Market Analysis

Futures for the S&P 500, Nasdaq 100 and Dow Jones industrial average rose in late trading Thursday, fueled by post-earnings gains by Apple (AAPL) and Amazon (AMZN). Apple, which is the biggest member of the S&P 500 index, Nasdaq composite and Dow industrials, also gave a boost to iPhone-related stocks such as Broadcom (AVGO), Applied Materials (AMAT) and Universal Display (AVGO). That gives Apple an even-larger impact on the market.

X S&P 500 index futures rose nearly 0.2% vs. fair value. Nasdaq 100 futures jumped 0.6%. Dow futures climbed 0.1%.

Apple

Apple reported better-than-expected earnings and revenue for the holiday fiscal first quarter, though iPhone shipments missed forecasts. Apple guided current-quarter revenue forecasts sharply lower. But after some initial uncertainty, shares rebounded in extended trading, rising 3.3% to 173.40.

What’s going on? First, extended trading often doesn’t translate into the following session. But there is a strong case that Apple’s bad news was already priced in the stock price.

Several analysts warned of weaker iPhone production and demand leading up to the earnings report. That sent the stock below a recent buy point and its 50-day moving average, even as the broader market was soaring in January.

The stock’s late-night rally suggests that Apple could retake its 50-day line on Friday.

Apple’s stock chart is still in bad shape. The relative strength line, which tracks a stock’s performance vs. the S&P 500 index, has been lagging for months, and recently hit its worst levels since mid-June. Technically, a 176.34 buy point is still valid, though you’d want to see the RS line top at least short-term highs to provide some confirmation.

IPhone Stocks Rally

Several iPhone-related stocks rallied late on Apple’s report and guidance, as they too had priced in bad news.

Broadcom rose 1% late. But the chipmaker, which set a four-month closing low Thursday, is stuck below its 50-day and 200-moving averages.

Applied Materials is a chip- and display-equipment maker. It is not an Apple supplier, but some analysts have pegged it as an iPhone X play due to its involvement in OLED displays. Applied Materials rose about 1% in late trade. Applied Materials is in a cup-with-handle base, but the stock is finding resistance at its 50-day moving average.

Universal Display also is not an Apple supplier, but as its OLED ticker suggests, makes technology used in producing the high-end screens for premium smartphones. Universal Display rose 6% in late trade. The stock had closed at its lowest level in almost three months after a January breakout broke down.

Qorvo (QRVO) is another iPhone chipmaker, but shares weren’t that active late. They might be tired after skyrocketing 16% to 83.34, clearing an 81.30 cup buy point. Qorvo guided lower late Wednesday, but touted a big Apple contract win that will increase its iPhone business, at the expense of Broadcom.

Amazon

Amazon reported blowout earnings, helped by a big tax-cut benefit, while revenue also topped. Shares rose 6% in late trade after falling 4.2% during the regular session. Amazon has been a huge winner so far in 2018 after clearing a late-stage base.

Meanwhile, Amazon’s upside was offset by Google parent Alphabet (GOOGL) and Amgen (AMGN), which both missed on earnings. Alphabet and Amgen fell about 2% late.

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