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Dow Jones Futures Rise On Election Results; GOP Likely To Hold Senate| Investor’s Business Daily

Dow Jones futures rose in volatile trade late Tuesday, along with S&P 500 futures and Nasdaq futures. They jumped on reports that Republicans would hold the Senate but then gave up gains as Democrats racked up gains in the House. Earlier, Apple (AAPL) led a modest stock market advance Tuesday. The stock market rally has not yet had a key follow-through day, but Dow futures indicate the midterm election results won’t be a huge catalyst.




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Meanwhile, Match Group (MTCH), Planet Fitness (PLNT) and Jazz Pharmaceuticals (JAZZ) reported earnings late, along with top stocks Genomic Health (GHDX), Etsy (ETSY), Twilio (TWLO) and Tableau Software (DATA). Match Group stock, Planet Fitness stock and Jazz Pharmaceuticals stock are all members of the elite IBD 50 list. Genomic Health stock signaled a breakout, while Planet Fitness, Etsy, Tableau and Twilio stock also were winners. But Match Group and Jazz were big losers.

Dow Jones Futures Today

Dow Jones futures were 0.25% above fair value. S&P 500 futures climbed 0.1%. Nasdaq 100 futures were up 0.5%. Stock market futures rallied as Republicans fared well in the Senate, then pared gains as Democrats looked poised to take the House.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session. That’s been especially true during the stock market correction.

In Tuesday’s stock market trading, the Dow Jones rose 0.7%, while the S&P 500 index and the Nasdaq composite each gained 0.6%. Apple stock rose 1.1% after tumbling 6.6% Friday and 2.8% Monday following earnings. Tuesday was Day 6 of a market rally attempt, but there’s still no follow-through day to confirm the new uptrend. So the stock market correction is still in effect.

Stock Market And Midterm Election Results

Elections returns suggest that the Democrats will take the House. Republicans should hold their Senate majority and perhaps even pick up seats.

The stock market might cheer a divided Congress. Historically, the S&P 500 index has performed slightly better over the next two years when different parties hold the House and Senate.

The Dow Jones and other major averages also could rally — or sell off — with the midterm elections out of the way, rather than the results themselves driving the stock market. Perhaps Google parent Alphabet (GOOGL), Facebook (FB) and Twitter (TWTR) will rebound just for avoiding a new elections fiasco.

Don’t try to guess the stock market reaction to the midterm election results, and don’t rely on market pundits either. Wait for the market to sift through the election results and make its own ruling.

Twilio Earnings

Twilio earnings came in at 7 cents a share, beating views by 5 cents and reversing a year-earlier 8-cent loss. Revenue surged 68% to $168.9 million, marking the third straight quarter of accelerating growth. The communications software firm also gave bullish Q4 guidance. Twilio stock surged 14% in late trade, signaling a move back above its 50-day line. Twilio stock is consolidating but does not yet have a proper base and buy point.

Planet Fitness Earnings

Planet Fitness earnings rose 47% to 28 cents a share, beating views by four cents, though that snapped a three-quarter string of faster growth. Revenue rose 40%, the best top-line growth in 17 quarters for the low-fee gym operator.

Planet Fitness stock sprinted 6.4% late, pointing to a move above the 50-day line.

Etsy Earnings

Etsy earnings rose 36% to 15 cents a share, defying forecasts for a drop to 7 cents. Revenue grew 41% to $150.37 million, just beating. Etsy stock soared 13% late. Shares have been consolidating since mid-September.

Match Group Earnings

Match Group earnings rose 131% vs. a year earlier to 44 cents. Revenue climbed 29% to $444 million. Analysts expected Match Group earnings of 36 cents per share on sales of $436.6 million. But the parent of dating site Match.com and app Tinder gave weak revenue guidance for the fourth quarter.

Match Group stock fell 9% late, signaling the lowest levels since mid-August.

Genomic Health Earnings

Genomic Health earnings came in at a 37 cents a share, up 1,133% vs. a year earlier. Analysts expected Genomic Health earnings of 7 cents. Revenue grew 21% to $101.26 million, well above forecasts for $94 million and the fourth straight quarter of accelerating growth. The maker of cancer diagnostic tests also gave full-year guidance that implied strong Q4 results.

Genomic Health stock, highlighted as an IBD Stock of the Day last week, jumped nearly 5% to 74.20 late. That would signal a move above a 72.93 buy point from a short consolidation.

Tableau Earnings

Tableau earnings came in at 7 cents a share, defying views for an 11-cent loss, though down from 8 cents a year earlier. Revenue climbed 11.5% to $239.2 million, narrowly missing. Tableau stock popped 8.5% to 114. That signals a move above its 50-day line, where shares have met resistance for the past few sessions. Tableau stock is in a consolidation with a 118.18 buy point.

Jazz Pharmaceuticals Earnings

Jazz Pharmaceuticals earnings easily beat views, but the drugmaker’s Q3 sales were a little light. Full-year estimates also didn’t inspire. Jazz Pharmaceuticals stock tumbled nearly 9% late.

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