Dow Jones Futures: After Stock Market Rally Setback, IBM Stock Moves Late On Earnings

Dow Jones futures rose modestly late Tuesday, along with S&P 500 futures and Nasdaq futures as the stock market rally wobbled on China trade fears, suffering its biggest setback since the Apple stock crash on Jan. 3. IBM stock rallied late on earnings, good news for the Dow Jones. Results for online brokerages TD Ameritrade (AMTD) and Interactive Brokers (IBKR) diverged. Meanwhile, marijuana stock Aphria (APHA) was up and down late as a Green Growth Brands takeover saga took another turn.


Dow Jones Futures Today

Dow Jones futures rose 0.3% vs. fair value. S&P 500 futures climbed 0.2%. Nasdaq 100 futures were up nearly 0.3%. IBM is a Dow component, so it’s providing some support to Dow Jones futures. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

IBM Stock

IBM (IBM) beat Q4 estimates and guided higher. Keep in mind that IBM earnings and revenue did fall vs. a year earlier. IBM stock rose 6.5% in late trade, but shares have been in a multiyear downtrend.

TD Ameritrade, Interactive Brokers Earnings

TD Ameritrade earnings per share rose 39%, comfortably beating views. Interactive Brokers earnings and revenue missed slightly. TD Ameritrade stock rose 2.3% late, signaling a move above the 200-day line. Interactive Brokers stock fell 1.8%.

Marijuana Stocks: Aphria Haze

NYSE-listed Aphria stock fell 0.6% in late trading, reversing earlier gains. Green Growth Brands made a formal offer to Aphria, offering 1.5714 Green Growth shares (listed in Canada) for Aphria stock. Green Growth made a similar takeover bid for Aphria in late 2018, which Canada-based Aphria rejected as too low. Short sellers, who have raised doubts about other Aphria dealings, also questioned Green Growth’s ties to Aphria.

Stock Market Rally Setback

The stock market rally suffered its worst setback since the Apple (AAPL) earnings warning slammed the major averages on Jan. 3.

The Dow Jones on Tuesday fell 1.2%, the S&P 500 index dropped 1.4%, and the Nasdaq composite lost 1.9%. The Dow and S&P 500 undercut their 50-day moving averages intraday, but all three indexes closed above that key level. Apple stock, for its part, fell 2.2%, as the iPhone maker struggles to even keep pace with the stock market rally.

The stock market fell in part on reports that the Trump administration turned down a proposed China trade meeting due to differences over intellectual-property rights. White House economic advisor Larry Kudlow told CNBC that there was no canceled meeting, helping the stock market pare losses slightly at the close.

The stock market rally has been fueled in no small measure by hope for a China trade deal. Anything that suggests otherwise could hurt.

Setting aside China trade headlines, the stock market rally has run up with few hurdles. Except for the Jan. 3 Apple stock crash — followed immediately by the S&P 500 follow-through day — the major averages hadn’t suffered a big pullback since Dec. 24. It’s not much fun in the moment to experience a high-volume sell-off, but the stock market rally is intact for now. If the major averages continue to pile up distribution days, that will be a bigger concern.

Dow Jones futures rebounding modestly from the 50-day line is encouraging, but the actual Dow and leading indexes doing so would be more meaningful.


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Originally posted 2019-09-19 23:31:38.


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