Apple Powers After-Hours Advance; Market Looks Toward Fed, Oil Reports

A hard-charging after-hours session Tuesday sent a large number of stocks sharply higher and lower on earnings news, after a strong report from Apple (AAPL), and ahead of Wednesday’s policy rate decision from the Fed.


Apple scaled up nearly 3% in extended trading, helping boost all three indexes’ futures. Nasdaq 100 futures climbed 0.5%. Futures for the Dow Jones industrials inched up to fractional gains. IBD 50 stock Viper Energy (VNOM) scored big after hours on strong Q1 results. Snapchat parent Snap (SNAP) posted one of the session’s heaviest declines.

Apple Powers Up: Boosts Dividend, Launches $100 Billion Buyback

Apple narrowly cleared analysts’ sales and earnings targets. The iPhone maker also boosted its June-quarter revenue guidance, ratcheted up its quarterly dividend by 16% and launched a $100 billion share-buyback initiative.IPhone sales fell just short of expectations during the quarter, rising less than 3% year-over-year to 52.2 million. Apple shares have been locked in consolidations since late January. The current consolidation is a flat base with a 183.60 buy point, and an alternative entry at 179.04. Apple’s after-hours gain Tuesday implied an open back above the stock’s 50-day moving average and 2% below the base’s alternative entry. Stock moves made in extended or premarket trading do not necessarily carry through into the regular session.

Shutterfly, Zendesk, Viper Energy Up On Earnings; Chip Stocks Advance

Among the fastest-rising issues in postmarket action, Community Health Systems (CYH) spiked 8%, and Brooks Automation (BRKS) and Macom Technology Solutions (MTSI) each vaulted 7% higher. Unfortunately, all of those stocks are in deep corrections and not near buy points.

However, Shutterfly (SFLY) flitted nearly 9% higher after trimming losses more than expected for the first quarter, with revenue topping targets. The stock is forming a cup with handle with a potential 84.81 buy point. Shutterfly has a weak 45 EPS rating from IBD, but earnings are expected to jump 145% this year, following a 133% EPS gain in 2017.

Software developer Zendesk (ZEN) swept ahead more than 9% after the close. The Redwood City, Calif., company turned in a strong first-quarter sales and earnings beat, and raised second-quarter guidance above consensus views. Zendesk is projected to post its first annual profit this year, and a 625% EPS gain in 2019. The stock finished Tuesday 5% below a 51.01 buy point in a three-weeks-tight pattern.

IBD 50 stock Viper Energy Partners bolted 3.3% higher after reporting a better-than-expected 73% profit increase and revenue up 86% in its first quarter. The Permian Basin oil acreage owner is extended, 10% above a 26.29 buy point at Tuesday’s close.

Chip stocks bounded higher in late action, with the Philadelphia Semiconductor Index looking to add to Tuesday’s gain. Twenty-nine of 30 Philly chip index names climbed after hours. Macom led, followed by Cirrus Semiconductor (CRUS) with a 3.6% gain. Cirrus reports fiscal fourth-quarter results after Wednesday’s closing bell.

Yum China, Snap, Paycom Take Hits; Fed, Oil Data On Wednesday

Among stocks diving in late trade, Yum China (YUMC) toppled 8% and Snap collapsed to a 15% loss.

Paycom Software (PAYC) skidded 4% lower, despite reporting above-forecast first-quarter sales and earnings. The company also provided Q2 revenue and earnings growth in line with estimates, and raised full-year sales guidance above analyst targets.

For Wednesday, market attention is likely to center on the 2 p.m. ET release of the Fed policy decision. Oil prices will also be of interest, as the Energy Information Administration reports weekly stockpiles data at 10:30 a.m. ET.

ADP delivers its National Employment Report before the market opens, a precursor to Friday’s April payrolls report.

On the earnings front, CVS Health (CVS), Humana (HUM) and Mastercard (MA) are among the names scheduled to report early Wednesday. Tesla (TSLA), Square (SQ) and Continental Resources (CLR) headline the companies reporting after Wednesday’s close.


The Big Picture: Stocks Power Up; Apple Earnings Add Fuel

Tesla, Mastercard, Square Earnings; Fed Meeting: Investing Action Plan

Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists


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Originally posted 2019-09-19 23:13:45.


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