Dow Jones Futures: Adobe Stock Up On Outlook; Twilio Buys SendGrid

Dow Jones futures rose modestly late Monday, along with S&P 500 futures and Nasdaq futures, after the stock market correction rolled on in Monday’s session. Adobe (ADBE) rose late on bullish guidance, while Palo Alto Networks (PANW) retreated after reiterating targets and naming a new president. Communications software firm Twilio (TWLO) will buy SendGrid (SEND), a company whose technology helps send mass emails.


All four software stocks are highly rated. Palo Alto stock boasts a best-possible 99 Composite Rating. Adobe stock has a 96 Composite Rating. SendGrid stock has a 95, and Twilio a 91.

In Monday’s stock market trading, the major averages faded into the close. The Dow Jones, up for much of the day, fell 0.35%. The S&P 500 index retreated 0.6%, falling back below its 200-day moving average. The Nasdaq composite retreated 0.9%. A weak finish is common in a stock market correction. At the same time, the rally attempt that started Friday isn’t finished.

Dow Jones Futures Today

Dow Jones futures rose 0.1% vs. fair value. S&P 500 futures advanced nearly 0.2%. Nasdaq 100 futures climbed 0.4%. Remember that action in Dow futures, Adobe stock and elsewhere doesn’t necessarily translate into actual trading in the next regular session.

On Tuesday, three Dow Jones components report earnings: UnitedHealth (UNH), IBM (IBM) and Johnson & Johnson (JNJ). Pay attention to UnitedHealth, which is holding up during the stock market correction along with other managed care firms. UnitedHealth and Netflix (NFLX), which reports Tuesday as well, are both IBD 50 stocks.

Adobe Stock

After the close, Adobe reaffirmed its fiscal Q4 guidance, predicting $2.42 billion in revenue and $1.87 in adjusted earnings per share. Those are in line with analyst estimates for Adobe earnings and sales. Adobe also forecast 20% revenue guidance in fiscal 2019, excluding its pending Marketo acquisition.

Adobe stock jumped 5.9% to 252. Shares had closed down 4.4% to 238.01, approaching the 200-day line.

Palo Alto Stock

The cybersecurity company named a new president, Amit Singh, effective Nov. 1. Singh hails from Alphabet (GOOGL) unit Google. In June, Palo Alto named Nikesh Arora, a former top Google and Softbank exec, as CEO.

Palo Alto still sees fiscal Q1 adjusted EPS of $1.04-$1.06, with revenue of $625 million to $635 million. Both are in line with views.

Palo Alto stock fell 1.5% to 206 in extended trade. Shares closed down 1.3% to 209.20. Like Adobe, Palo Alto stock is stuck between its 50-day and 200-day lines.

Twilio SendGrid Deal

Cloud-based communications software firm Twilio will buy SendGrid for $2 billion in an all-stock deal. Twilio will pay 0.485 share per SendGrid share. That was equal to $36.92 as of Monday’s close.

Twilio stock fell 3.5% to 73.45 in late trading, after rising 1.5% to 76.13 on Monday. SendGrid stock, a November 2017 IPO specializing in mass emails, shot up 13.5% to 35.10 in extended action. Shares had closed down 0.2% to 30.93.


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Originally posted 2019-09-19 23:22:54.


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