Caterpillar Lifts Dow, Futures Mixed; Top Chip Stock Eyes Breakout | Stock News & Stock Market Analysis

Stock futures traded in very narrowly mixed territory early Monday, as mergers news and analyst actions stirred some premarket moves, and investors prepared for the start of the fourth-quarter reporting season.

Futures for the Dow Jones industrial average edged up 0.2%. Nasdaq 100 futures added a fraction as Apple (AAPL) traded flat and the four FANG stock tech leaders were flat to higher. S&P 500 futures dipped to narrow losses, with some big names including Starbucks (SBUX) and Southwest Airlines (LUV) dragging lower in early action.

XThe week gets off to a slow start, although medical stocks may be in motion on news spinning out of JPMorgan’s four-day health conference. The economic and earnings calendars pick later in the week, beginning with quarterly reports from homebuilder Lennar (LEN) and from Delta Airlines (DAL) on Wednesday and Thursday. Reports on Friday from JPMorgan (JPM), PNC Financial (PNC) and Wells Fargo (WFC) mark the official start of the fourth quarter earnings season.

Caterpillar Gets Upgrade; Nvidia Poised For Breakout

Caterpillar (CAT) set up a comfortable early lead on the Dow Monday, rising 1.4% after J.P. Morgan upgraded the stock to overweight, from neutral and boosted the price target 40%, to 200. New tax rules implemented by the GOP late last year are likely to boost the company’s cash flow and extend the up-cycle for the North American construction business, the note said.

The early gain positioned the stock to open at a new high, extended above a 140.54 buy point after a late-November break-out.

Chip stocks showed some premarket momentum with Nvidia (NVDA) climbing more than 2% and Applied Materials (AMAT) up nearly that much. IBD 50 name Nvidia ended Friday’s session less than 2% below a 218.77 buy point in a six-week cup base.

Applied Materials, also on the IBD 50 list, had just retaken support at its 10-week line, as it climbs the right side of a seven-week cup base.

U.K.-based Micro Focus International (MFGP) dived more than 15% ahead of the open. The legacy software leader, a component of London’s FTSE 100 index, forecast lower-than-expected revenue and announced a change of chief financial officers. The company is struggling with its $8.8 billion acquisition of Hewlett Packard Enterprise’s (HPE) software business, completed in late 2016.

Celgene (CELG) shares rose more than 1% after the company said it would pay a $1.1 billion in upfront payment to acquire privately held Impact Medicines. The deal includes potential milestone payments raising the possible total value to near $7 billion. Celgene shares are up 11% froman Oc4tober low, but still deep in a three-month consolidation.

China, Japan Markets Jump; Two Fed Speeches Coming Up

Asian stock market posted stout gains Monday,. with China’s Shanghai Composite up 0.5% and, in Japan, Tokyo’s Nikkei 225 soaring 0.9%. Benchmarks were mixed in Europe, where London’s FTSE 100 sagged a fraction, while the CAC-40 in Paris gained 0.4% and Frankfurt’s DAX was up 0.3% near midday.

In Monday’s scheduled economic news, the Federal Reserve’s consumer credit data for November are due out at 3 p.m. ET. Atlanta Federal Reserve Bank President Raphael Bostic speaks in Atlanta at 12:40 p.m. ET. President John Williams of the San Francisco Federal Reserve is scheduled to speak at 1:45 p.m. ET.


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Originally posted 2018-01-08 13:30:30.


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