Dow Jones Futures: Facebook Stock, Tesla Stock, Microsoft Stock, Visa Stock, ServiceNow Stock Are Big Earnings Movers

Dow Jones futures and S&P 500 futures climbed modestly late Wednesday while Nasdaq futures rose sharply. Microsoft (MSFT), Facebook (FB), Visa (V), ServiceNow (NOW) and Tesla (TSLA) were among the many big after-hours earnings reports after a news-packed stock market rally. Microsoft stock, Facebook stock, Tesla stock, Visa stock and ServiceNow stock were all active, with some big winners and losers late.


While Facebook stock and Tesla stock have been damaged in recent months, ServiceNow stock and Dow Jones stocks Microsoft and Visa have all been close to buy points in the current stock market rally. ServiceNow broke out into a buy zone Wednesday, while Visa stock briefly tested a buy point overnight. Visa stock and ServiceNow stock are both on the IBD 50 list. ServiceNow also is an IBD Leaderboard watch list stock.

Microsoft stock and Visa stock both have IBD Composite Ratings of 95. ServiceNow stock has a best-possible 99 Composite Rating. Facebook stock has a 73 CR and Tesla stock a lowly 33.

Dow Jones Futures Today

Dow Jones futures were 0.1% above fair value, even with overnight declines in Microsoft stock and Visa stock. S&P 500 futures advanced 0.4%. Nasdaq 100 futures jumped 0.9%. 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 Hits New High

The current stock market rally pushed strongly higher Wednesday. Dow Jones stocks Boeing (BA) and Apple (AAPL) jumped on earnings, while the Fed meeting ended with its promise to be “patient” and willing to “adjust” its balance-sheet reductions. The Dow Jones rose 1.8%, the S&P 500 index gained 1.6%, and the Nasdaq composite added 2.2%. The S&P 500 index, Dow Jones and Nasdaq all cleared their recent consolidations, hitting their best levels since early December. The Dow reclaimed 25,000 and its 200-day moving average.

Facebook Earnings Top, Facebook Stock Soars

Facebook earned $2.38 a share on revenue of $16.91 billion, both beating. Average revenue per user skyrocketed, fueled by U.S. and America users.

Facebook stock shot up 11.5% late, signaling a move above its 200-day line. Shares closed up 4.3% to 150.42, continuing a rebound since Christmas, right along with the current stock market rally. Facebook stock remains well below its 218.62 peak on July 25.

Tesla Earnings Miss, CFO Exit Sinks Tesla Stock

Tesla earnings came in at $1.93 a share adjusted vs. the consensus for $2.20. Revenue rose to $7.23 billion vs. views for $7.08 billion, while cash on hand climbed by $718 million to $3.7 billion.

Tesla CEO Elon Musk was upbeat on the earnings call about the company’s prospects, self-driving advances and more. He said a Tesla pickup trick may be ready to be unveiled this summer.

But late in the Tesla earnings call, the company announced that CFO Deepak Ahuja will retire in a few months. He’ll be replaced by vice president of finance Zach Kirkhorn. Tesla still hasn’t replaced its chief accounting officer, who quit four months ago after just a month on the job.

Tesla stock fell 4.8%. Shares closed up 3.8% to 308.77, but still below their 50-day and 200-day lines.

Musk earlier this month was more downbeat in a blog post announcing job cuts and weaker gross margins. Tesla has cut prices on its vehicles, citing the reduced tax credit, but that implies weaker demand. Also, that demand is shifting away from the Model S and Model X and higher-priced Tesla Model 3 cars to lower-priced Model 3 variants, which will make it harder for the company to make money.

Microsoft Earnings Edge Views, Microsoft Stock Falls On Revenue Miss

Microsoft earnings came in $1.10 a share, beating by a penny. Revenue came in at $32.47 billion, just missing views for $32.51 billion.

Azure cloud-computing offerings are growing very fast, though the pace is slowing.

Microsoft stock fell 2.7% in late trade. Shares closed up 3.3% to 106.38, back above their 50-day and 200-day lines after falling below those key supports on Tuesday. Microsoft stock has been working on a 108 cup-with-handle buy point.

Microsoft stock lost its market-cap crown to Amazon (AMZN) on Wednesday, which surged 4.8% a day ahead of its results. Amazon stock closed Wednesday with a $816.79 billion market cap, and was slightly higher overnight. Microsoft has a $816.59 billion valuation as of the close.

ServiceNow Earnings Soar After ServiceNow Stock Breakout

ServiceNow earnings surged 120% to 77 cents a share, blowing past estimates. It notched revenue of $723.7 million, a 30% gain but slightly missing.

ServiceNow stock jumped 6.6% in late trading. Shares rose 5% in the regular session to 194, above a 192.89 handle buy point.

Visa Earnings Beat, Visa Stock Eyes Buy Point

Visa earnings climbed 20% to $1.30 a share, with revenue rising 13% to $5.51 billion. Analysts expected Visa earnings at $1.25 per share on $5.396 billion in revenue, according to Zacks Investment Research.

Visa also announced an $8.5 billion buyback.

Visa stock fell 1.6% to 135.38 late after initially clearing 140, signaling a test of a 139.58 cup-with-handle buy point. Shares closed up 1.9% to 137.60, back above their 50-day and 200-day lines after falling below those key supports this week.

Archrival Mastercard (MA) reports earnings Thursday morning.


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Originally posted 2019-09-19 23:32:24.


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