Boeing Boosts Dow, Trump Bites This FANG Stock

Stocks leapt out of premarket trading and into early gains Thursday, as the market moved into the final session of the first quarter in a holiday-shortened trading week.


The S&P 500, Dow Jones industrial average and Nasdaq Composite all hustled up 0.7% at the starting bell. Boeing (BA) and (AMZN) will be under investors’ microscopes Thursday, as Boeing deals with a malware attack and Amazon investors grapple with a barbed early tweet from the White House.

Tech stocks were bucking for a rebound on the stock market today. Apple (AAPL) swung up 1%, while Facebook (FB) jumped 1.4%, the strongest early move among FANG stock tech leaders.

All three of the major indexes have lost ground in five of the past six sessions. Despite the selling, the Dow Jones industrials and the S&P 500 have continued to find support at their 200-day moving averages.  The Nasdaq ended Wednesday 3% above its 200-day, and 5% below its 50-day line.

Thursday’s heavy early serving of economic news opened with a dive in weekly first-time unemployment claims, down more than 5% to 215,000 in the week ended March 24, according to the Labor Department. Consensus views estimated an uptick to 228,000 claims.

Personal income growth was steady, up 0.4%, in February, the Commerce Department reported. Consumer spending rose 0.2%, equal to January’s gain. Core price growth slowed to 0.2%, down from 0.4%. All the February numbers met consensus expectations.

The Chicago purchasing managers index is slated for a 9:45 a.m. ET release, followed by the University of Michigan’s March Consumer Sentiment Index at 10 a.m. ET. At 1 p.m. ET, BakerHughes (BHGE) reports its weekly rig count survey, and Philadelphia Federal Reserve Bank President Patrick Harker speaks to the New York Association of Business Economics.

Premarket Trading: Boeing Wrestles Malware, Amazon Wrestles Trump

On the Dow, blue chips moved almost unanimously higher. Boeing stock jumped 1.2%, after the aircraft builder said a malware attack reported late Wednesday would affect neither production nor deliveries. A New York Times report on Wednesday cited an internal memo that said “the attack was ‘metastasizing,'” and could potentially “spread to Boeing’s production systems and airline software.” Boeing shares ended Wednesday down about 14% from a Feb. 28 high, trading just below their 10-week moving average.

On IBD’s lists of leading growth stocks, had scored strong early gains in premarket trading. But shares reversed and fell 2% at the open. An early tweet from President Trump said of the e-commerce giant: “Unlike others, they pay little or no taxes to state & local governments, use our Postal System as their Delivery Boy (causing tremendous loss to the U.S.), and are putting many thousands of retailers out of business!” An online story published Wednesday said the President “wants to go after Amazon.”

Amazon, an IBD Leaderboard name, had pared early losses Wednesday to end the session down 4.4% in very heavy trade. The result left it 2% below its 50-day moving average, and about 13% below its high from March 13.

Other IBD Growth Stock Leaders In Motion

Viper Energy Partners (VNOM) surged 2.6%, to the head of the IBD 50 list. The Texas-based oil producer is building the right side of a possible three-month base pattern.

Another IBD 50 name, China-based Weibo (WB) climbed 2.4%. The micro-blogging and streaming video site cleared a late-stage cup base in January. It is off its mid-February high, and would need to correct an additional 16% in order to undercut that prior base and reset its base count.


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Originally posted 2019-09-19 23:12:00.


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