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Dow Jones Futures: Apple Earnings Report Is Key With Stock Market Correction At Turning Point

Dow Jones futures rose modestly late Wednesday, along with S&P 500 futures and Nasdaq futures, after the stock market rally extended to two sessions. Apple (AAPL) earnings are on tap late Thursday, with the stock market correction near a possible end. As investors look for confirmation that the market rally has staying power, the Apple earnings report could be critical. Apple stock is part of the Dow Jones, S&P 500 index and Nasdaq composite.




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Dow Jones Futures Today

Dow Jones futures rose 0.25% vs. fair value. S&P 500 futures climbed 0.25%. Nasdaq 100 futures were up 0.3%. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular session. That’s certainly been true during the stock market correction, which has seen several big swings during daytime and overnight sessions.

Stock Market Rally Attempt

The major averages rose solidly for a second straight session, with the Dow Jones rising 1% in Wednesday’s stock market trading and reclaiming its 200-day moving average. The S&P 500 index climbed 1.1%, while the Nasdaq composite jumped 2%. A rally attempt is underway, but until it’s confirmed we’re still in a stock market correction.

The stock market rally still needs more bullish price-and-volume action to confirm the uptrend. Look for a follow-through day to end the stock market correction.

Apple Earnings

Analysts expect Apple earnings to rise 34% to $2.78 a share in its fiscal fourth quarter, with revenue up 17% to $61.599 billion. Revenue growth has accelerated for the last seven quarters, including 17% in Apple’s Q3. A modest beat would mean an eighth straight quarter of faster top-line growth.

Apple earnings growth has accelerated for the past two quarters, including 40% in the most-recent period.

Investors also will be keeping a close eye on Apple earnings and sales guidance for the holiday quarter.

For a possible hint at Apple earnings, chipmaker Qorvo (QRVO) topped profit views late Wednesday but guided lower for the current quarter. Qorvo stock still rose late. Qorvo makes chips for the Apple iPhone and other mobile devices. However, Apple increasingly relies on services revenue and higher iPhone prices for growth as smartphone sales stagnate.

Apple Stock

Apple stock has been the best-performing big-cap tech in the stock market correction. Shares rose 2.6% to 218.86 on Wednesday, nearly reclaiming their 50-day moving average. Apple’s relative strength line, which tracks a stock’s performance vs. the S&P 500 index, has been trading at or near highs through the market correction.

Apple could offer buying opportunities in a confirmed uptrend. A strong move above its 50-day line would be one possible entry. Apple also is working on a flat base. It’s not quite finished, but could offer a 233.57 buy point.

Apple earnings likely will have a huge influence on whether the market will have a follow-through day. It’s the only $1 trillion company, with Apple stock part of the Dow Jones, S&P 500 index and Nasdaq. Its results also could fuel broad buying or selling, much as Facebook (FB) and General Motors (GM) earnings buoyed stocks on Tuesday.

Apple Earnings Aren’t Only Stock Market Rally Driver

Friday won’t just be about the reaction to Apple’s earnings. Chinese e-commerce giant Alibaba (BABA) and Dow Jones energy giants Exxon Mobil (XOM) and Chevron (CVX) report earnings Friday. Starbucks (SBUX), Fortinet (FTNT), AbbVie (ABBV) and other notable stocks also are on tap for late Thursday or early Friday. Meanwhile, the October employment report also is due Friday, with jobs and wage data moving Treasury yields, Fed rate hikes and likely stocks.

All those could influence whether the stock market correction switches to a confirmed market rally. However, if there’s no follow-through day by Friday, the rally attempt will continue as long as the major averages don’t undercut recent lows.

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