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Dow Jones Futures: Current Stock Market Rally Keeps Rising; Synopsys Stock Eyes Breakout On Earnings

Dow Jones futures rose Wednesday night, along with S&P 500 futures and Nasdaq futures, on the latest China trade deal reports, as the current stock market rally continues to face token opposition. After the close, top stocks Synopsys (SNPS), Genomic Health (GHDX), Evertec (EVTC) and Workiva (WK) reported earnings. Synopsys stock signaled a breakout, while Genomic Health stock jumped toward a buy point. Evertec stock and Workiva stock, already above proper entries, also were active.




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Synopys stock boasts a 93 IBD Composite Rating out of a best-possible 99. Genomic Health stock has a 97 CR, Evertec stock a 92. Workiva stock has an 86 Composite Rating, reflecting the software maker’s money-losing history.

Dow Jones Futures Today

Dow Jones futures climbed 0.4% vs. fair value. S&P 500 futures rose 0.4%. Nasdaq 100 futures advanced 0.5%. Bloomberg reported that Beijing and Washington are working on multiple memorandums of understanding that would form the basis of a China trade deal. That follows a similar report from Reuters. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular session.

Current Stock Market Rally

The current stock market rally had a quiet day, but the major indexes still closed with slim gains. The Nasdaq composite found support at its 200-day line once again. Despite a few negative days along the way, the Nasdaq and Dow Jones are working on their ninth straight weekly gains. After a big stock market correction or bear market, the major indexes usually don’t go straight up. One could argue that the current stock market rally is due for a real test. That doesn’t mean a stock market rally pause or pullback will happen right away, if at all. One could have made the case in mid-December that the stock market was due for some sort of bounce, but the selling intensified until the Christmas Eve bottom.

Synopsys Earnings Push Synopsys Stock To Buy Point

Synopsys earnings fell 2% to $1.08 a share for fiscal Q1, while sales climbed 7% to $820.4 million. Wall Street expected Synopsys earnings of 97 cents on sales of $795.8 million. The chip design software maker guided estimates higher for the current quarter.

Synopsys stock rose 1.9% to 104.90 late. That signals a possible move above a 103.50 cup-base buy point. Synopsys stock rose 1.1% to 102.98, hitting 103.73 intraday. The relative strength line, which tracks a stock’s performance vs. the S&P 500 index, already is at a new high, a bullish sign.

Genomic Health Earnings

Genomic Health earnings quadrupled to 32 cents a share, beating by 2 cents. Revenue grew nearly 20% to $104.6 million, also topping. The maker of diagnostic tests for breast and prostate cancer treatment also guided higher on 2019 earnings.

Genomic Health stock rose 2.8% to 86.05 in late trading. Shares are working on a 92.28 cup-base entry. Genomic Health stock climbed 1.2% to 83.66 in Wednesday’s stock market.

Genomic Health stock was a big winner last year, rising 88% even with the late-2018 market retreat.

Evertec Earnings

Evertec earnings jumped 92% vs. a year earlier to 46 cents, beating by two cents. Revenue grew 19% to $118.23 million, also above views. The Puerto Rico-based payments company has rebounded from Hurricane Maria in 2017. But Evertec earnings and revenue guidance for 2019 were generally below views.

Evertec stock fell 7.8% to 28.26 in late trade. That signals a move below a 30.30 flat-base buy point, cleared on Tuesday. Evertec stock rose 1% to 30.65 on Wednesday.

Workiva Earnings

Workiva earnings topped views by 10 cents with a loss of $199,000, or zero cents per share. Revenue rose 18% to $64.4 million, modestly beating. Workiva earnings guidance was above views for Q1 with a bigger-than-expected loss for the full year, but its revenue guidance was above consensus for Q1 and 2019.

Workiva stock rose 1.15% to 44.75 in late trading. Shares of the database software marker closed up about 1% to 44.24. That was slightly extended from a buy point of 40.94 that Workiva stock cleared on Jan. 31.

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