Apple Lifts Stock Futures; Starbucks Sags, Arista Leads IBD 50 | Stock News & Stock Market Analysis

Stock futures powered higher as earnings reports continued to roll in during Friday’s premarket session, and investors awaited the October payrolls report.

XAutoplay: On | OffNasdaq 100 futures scrambled ahead 0.4%, with Apple (AAPL) and Mattel (MAT) leading the charge. Futures for the Dow Jones industrial average gained almost 0.2% above fair value, while S&P 500 futures added less than 0.1%. Small caps were weak, with Russell 2000 futures climbing out of narrow losses and into very slight gains.

The market weathered a big day of news Thursday with mixed results, as House Republicans introduced a massive tax overhaul proposal, President Trump appointed a new Federal Reserve chairman and the Bank of England increased its target interest rate for the first time in a decade.

The result sends the Dow into Friday’s session up 0.4% for the week, whereas the Nasdaq is ahead 0.2% and the S&P 500 opens with a fractional loss. The Dow and S&P 500 are both sitting atop seven-week advances. The Nasdaq has a five-week run up under its belt.

The Commerce Department’s October payrolls report leads Friday’s economic news, due out at 8:30 a.m. ET, along with September trade balance data from the Commerce Department. Researcher Markit releases its October services purchasing managers index at 9:45 a.m.

At 10 a.m., Commerce reports its September factory orders estimates and the Institute For Supply Management delivers its non-manufacturing index for October. At 1 p.m. ET, Baker Hughes (BHGE) serves up its weekly oil and gas rig census.

Apple Climbs, Starbucks Sells Tazo,

Apple muscled nearly 4% higher ahead of the open, leading the Dow, the S&P 500 and the Nasdaq 100. The Cupertino, Calif. tech giant turned in a 24% EPS gain and a 12% revenue increase late Thursday in its fiscal fourth-quarter report. Sales of iPhones during the quarter topped forecasts, and Q4 revenue guidance was above consensus views.  The stock ended Thursday near the top of a buy range above a 160.97 buy point.

Starbucks (SBUX) sagged a bit less than 2%, after its late-Thursday report showed fiscal fourth-quarter revenue slipping more than forecast by analysts. The company also announced plans to sell its Tazo Tea brand in a $384 million deal with Unilever (UL).  Shares have dropped 15% since June, and have traded below their 40-week moving average since late July.

Arista Networks (ANET) bolted 8% higher in premarket action after reporting strong third-quarter results late Thursday, and raising its fourth-quarter revenue guidance more than expected by analysts. The IBD 50 name dropped 8% in heavy trade on Thursday, cutting its 10-week moving average and sending a sell signal.

Among other IBD 50 plays, Universal Display (OLED) climbed almost 3% after reporting above-forecast third-quarter results late Thursday.  The stock had slipped back to just below a flat base buy point of 145.40.

On the downside, (STMP) toppled 9% in early action, despite what appeared to be a strong Q4 report and positive guidance for the full year. Shares have been steady, just above a 212.75 buy point in a cup-with-handle base.

Earnings news also sent Argentina-based e-commerce leader MercadoLibre (MELI) up 8% in premarket trade. Activision Blizzard (ATVI) jumped nearly 3% and Citrix Systems (CTXS) popped more than 2%. Both Activision and Citrix ended Thursday below buy points in valid bases.


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Originally posted 2019-09-19 23:27:56.


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