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Dow Jones Futures: PayPal, Square, Intuitive Surgical, American Express, Atlassian Earnings

Dow Jones futures rose late Thursday, along with S&P 500 futures and Nasdaq futures, after the ongoing stock market correction took a toll on more leading stocks. Payment stocks American Express (AXP) and PayPal (PYPL) rose late on earnings, lifting fellow payments stock Square (SQ). IBD 50 software play Atlassian (TEAM) and robotic surgery specialist Intuitive Surgical (ISRG) also moved on results. Dow Jones laggard DowDuPont (DWDP) sold off on a huge impairment charge.

Most of these stocks are highly rated. Atlassian stock, Square stock and Intuitive Surgical stock boast 98 Composite Ratings out of a best-possible 99. American Express stock has a 93 Composite Rating while PayPal has a 92. DowDuPont’s is just at 39.

All of these stocks closed Thursday below their 50-day moving averages, with some also trading below their 200-day lines.

That’s a common pattern. Even — especially — top stocks are struggling in the ongoing stock market correction. In Thursday’s trading, the Nasdaq composite fell 2.1%, back below its 200-day average. The S&P 500 lost 1.4%, closing just above that long-term support. The Dow Jones retreated 1.3%. Apple (AAPL) and AMD (AMD) dipped below their 50-day lines, while Activision Blizzard (ATVI) plunged below its 50-day and 200-day lines.

In a stock market correction, investors should stay on the sidelines, building and revising watchlists to prepare for the next confirmed rally. Read the Stock Market Today and The Big Picture columns to stay in sync with the major averages and leading stocks.

Dow Jones Futures Today

Dow Jones futures rose 0.3% vs. fair value. S&P 500 futures were up 0.4%. Nasdaq 100 futures advanced 0.6%. Remember that Dow futures and other overnight action don’t necessarily translate in actual trading in the next regular session.

China’s economy expanded 6.5% in the third quarter vs. a year earlier. That was just below estimates for 6.6% and Q2’s 6.7%.

PayPal Earnings, Guidance Lift Stock

The online payments processor reported third-quarter profit and revenue that topped Wall Street forecasts. PayPal earnings should grow 20% in fiscal 2019, the company said. The company also cited faster growth for its Venmo mobile payments service.

PayPal stock popped 7.6% in late trading after falling 3.3% to 77.48 ahead of results. That suggests shares will retake their 200-day line. But PayPal stock still has some distance before recovering its 50-day line or its Sept. 13 peak of 93.70.

PayPal earnings guidance appeared to boost digital payments peer Square. Square stock rose 1.9% late.

Intuitive Surgical Earnings

The robotic surgical systems leader reported stronger-than-expected Q3 earnings and sales. Meanwhile, surgical procedures using Intuitive Surgical’s da Vinci systems shot up 20%, the best year-over-year gain in at least three years. That bodes well for robot-surgery demand.

Intuitive Surgical stock rose 1.7% late, recouping some of the regular session’s 3.8% loss, hitting resistance at the 50-day line.

American Express Earnings

The Dow Jones financial giant narrowly exceeded Q3 earnings and revenue estimates and guided full-year EPS estimates slightly higher. American Express stock rose 0.9% late after closing down 1.4%.

Atlassian Earnings

The collaboration and project-management software firm narrowly exceeded adjusted fiscal first-quarter estimates. Atlassian earnings guidance for Q2 was also just above consensus. The full-year outlook was in line, but implies a somewhat so-so second half due to the Q1 beat and Q2 guidance. Also, Atlassian’s GAAP loss in Q1 was wider than some estimates.

Atlassian stock fell 5.8% in late trade after skidding 2.1% to 81.89 in the regular session.

DowDuPont Stock Dives On Merger Charge

DowDuPont said in an SEC filing that it will take a $4.6 billion impairment charge in the third quarter. It cited weak cash flow from its agricultural unit, which led to a further reassessment.

Dow DuPont stock fell 2.7% in late trade. Shares had closed down 1.7% to 58.58, hitting their worst levels since January 2017.

The Dow Jones chemicals and agribusiness giant, forged via a merger of Dow Chemical and DuPont, plans to split into several independent firms.

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