Dow Jones Futures: Snap Stock Soars; Paycom Stock, Vertex Stock And Tableau Stock Cross Buy Points

Dow Jones futures edged lower late Tuesday, along with S&P 500 futures and Nasdaq futures, after the current stock market rally advanced toward key levels. Snapchat parent Snap (SNAP) grabbed after-hours headlines with a big Snap stock move. But five top stocks in or near buy zones also reported late: Paycom Software (PAYC), Vertex Pharmaceuticals (VRTX), Tableau Software (DATA), Zendesk (ZEN) and Spirit Airlines (SAVE). Paycom stock and Vertex stock signaled a move above buy points. Meanwhile, Tableau stock and Spirit Airlines stock were set to cross below recent entries. Zendesk stock, already in a buy zone, rallied late.


Paycom stock, Tableau stock and Zendesk stock all boast best-possible IBD Composite Ratings of 99. Spirit Airlines has a 98 Composite Rating, while Vertex stock boasts a 96 CR. All-time stock winners often have at least a 95 Composite Rating near the start of big runs.

Meanwhile, Snap stock shot up 22% late on better-than-expected results. But Snap stock, with a 17 CR, is nowhere near a buy point.

Dow Jones Futures Today

Dow Jones futures fell 0.1% vs. fair value. S&P 500 futures and Nasdaq 100 futures lost 0.1%. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

President Donald Trump gave his State of the Union address. But his speech didn’t seem to move Dow Jones futures.

Current Stock Market Rally

After fading in the early afternoon, the stock market rallied to close near session highs. The Dow Jones and Nasdaq composite climbed 0.7%, while the S&P 500 index advanced 0.5%. The S&P 500 index and Nasdaq composite closed just shy of their 200-day moving averages, with their Dec. 3 peaks not much above that. It wouldn’t be surprising to see the current stock market rally pause around these levels.

Paycom Earnings Signals Paycom Breakout

Paycom earnings soared 110% vs. a year earlier to 61 cents a share. Revenue for the maker of human-resources and payroll-processing software rose 32% to $150.3 million. That’s the best Paycom earnings gain in five quarters. Paycom also guided higher for the current quarter.

Paycom stock rose 7% to 167.99 in late trading. That signals a move above a 164.18 cup-base buy point for the IBD 50 stock. Paycom stock rose 0.6% to 156.96 in Tuesday’s stock market. The relative strength line, which tracks a stock’s performance vs. the S&P 500 index, already is at a record high. 

Tableau Earnings

The Tableau earnings report was better than expected, at least in the headline numbers. The data analytics firm lost an adjusted 3 cents per share on revenue of $275.7 million. Wall Street expected an adjusted loss of 8 cents with revenue of $271.8 million. Billings, at $370.1 million, slightly missed some estimates.

But Tableau stock fell 3.1% to 128.80 late. That would push shares back below a 131.92 entry. Tableau stock rose 0.7% to 132.96 on Tuesday after just nudging past the buy point on Monday.

Vertex Earnings Revives Vertex Stock

Vertex earnings leapt 113% to $1.30 per share as revenue grew 34% to $870.11 million. Both easily beat views.

Vertex stock rose 2.9% to 192.50 late. That suggests a move back above a 187.86 buy point from a double-bottom base for the IBD Leaderboard stock. Vertex stock had just undercut that entry Tuesday, dipping 0.5% to 187.02. After pulling back from a record high of 195.81 on Jan. 22, one could argue that Vertex stock now has a high handle with an alternative entry of 195.91.

Spirit Airlines Earnings Just Miss; Spirit Airlines Stock Falls

The low-cost carrier’s revenue swelled to $862.8 million, beating views. Spirit Airlines’ earnings per share jumped to $1.38, but missed adjusted views by a penny. Unit revenue, a key industry metric, met views for an 11.4% pop.

Spirit Airlines stock fell 2.2% to 61.54. That suggests a move slightly below a 62.07 cup-with-handle buy point cleared Friday. Spirit Airlines stock rose 0.3% to 62.95 in Tuesday’s session.

Zendesk Stock Soars Out Of Buy Zone

Zendesk earnings popped to 10 cents a share, beating views by 7 cents. The customer-support and sales-automation software maker reported a 41% revenue gain to $172.2 million, also topping. Zendesk guided revenue estimates higher for the current quarter. But it also sees a 2-cent loss vs. analyst estimates for Zendesk earnings per share of 3 cents.

Zendesk stock spiked 11% to 76.20 late. That would push shares well out of range from a 66.92 cup-with-handle buy point cleared last week.

Zendesk stock fell 0.6% to 68.60 in Tuesday’s stock market.

Snap Stock Is Not A Top Stock

As with Dow Jones futures, while Paycom stock, Tableau stock and Vertex stock are all pointing in a particular direction overnight, that doesn’t mean these top stocks will trade that way Wednesday. And just because Snap stock is having a good night, that doesn’t make it a good stock.


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Originally posted 2019-09-19 23:32:54.


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