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Breakdowns, Breakouts On Tap For Friday

Pandora (P), GoPro (GPRO) and Xerox (XRX) reported results in extended trade Thursday, as futures for the major indexes rose moderately and markets looked toward April payrolls data due Friday.

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Nasdaq 100 futures ticked up 0.4% above fair value after Thursday’s close. Futures for the Dow Jones industrial average added 0.2%. S&P 500 futures also managed a 0.2% gain, even as energy construction powerhouse Fluor (FLR) fell hard in after-hours action.

The major indexes have so far struggled in May. The Dow Jones industrials exited Thursday’s session down 1.7% for the week. The S&P 500 was down 1.5%, while the Nasdaq Composite held to a 0.5% decline. All three are tracking toward a second straight weekly slip. The Dow and S&P 500 have both pulled back for another test of support at their 200-day moving averages. The Nasdaq is still hugging its 50-day line, and ended Thursday about 1% below that critical level of support.

For Friday, U.S. and European stock markets will have a careful eye on the Labor Department’s April payrolls report slated for release before the U.S. market opens. Investors will also have an ear out for any news from U.S. trade talks underway in China. Among the names planning to report early Friday: Alibaba Group (BABA), Celgene (CELG) and Ruth’s Hospitality Group (RUTH).

Pandora Gets Subscriber Boost; Weight Watchers Poised For Breakout

Pandora surged 7% after powering past analyst sales and earnings targets and reporting subscribers up 19% to 5.63 million for its first quarter.

Shake Shack (SHAK) scaled up nearly 9%. It easily beat first-quarter expectations, and management raised full-year revenue guidance. The stock is extended, just out of buy range above a 44.50 buy point in a cup-with-handle base.

Wingstop (WING) was the after-hours advancer among IBD 50 stocks. It glided 3.5% higher as sales and earnings comfortably cleared consensus targets for its first quarter. Sames-store sales growth leapt 9.5% — nearly double the 5.3% increase expected by analysts. Shares are up 46% from a November breakout and are again testing their 10-week moving average.

Medifast (MED) charged ahead 9% in late trade. Weight Watchers (WTW) launched a 7% aftermarket advance, after reporting a sharp acceleration in first-quarter revenue and profit growth. Weight Watchers is forming a cup base with a 77.29 buy point.

Arista, Fluor Slide; VF Corp., Warrior Near Buy Points

Arista Networks (ANET) dumped more than 7% after Thursday’s closing bell. The network gear and software developer blew past analyst first-quarter estimates, but its sales guidance just met consensus views, disappointing investors. The IBD 50 stock is up 91% over the past 12 months, but has been struggling to hold support at its 10-week moving average as it forms a late-stage base.

Fluor unraveled in a 13% loss, after reporting its fourth straight earnings decline. The stock had climbed 59% from an August low, but had been consolidating since February.

Friday’s slate of reports includes VF Corp. (VFC), the manufacturer of apparel brands North Face, Vans, Lee and others. The stock is trading below an 84.48 buy point in a cup base, and apparel makers have been demonstrating rising strength.

Boise Cascade (BCC) is up 10% from an early April low and moving up the right side of a three-month cup base. Consensus expectations are for an 81% earnings gain and a 12% rise in revenue when the company reports results early Friday.

Also on Friday, growth stock investors will be watching to see whether IBD 50 stock Warrior Met Coal (HCC) will retake its buy point. The Alabama-based miner jumped briefly past a 26.53 cup base buy point Thursday, after reporting a strong first quarter sales and earnings beat late Wednesday. Shares are up 176% since clearing an IPO base in July.

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