Dow Jones Futures: Warren Buffett Buys Apple Stock, JPMorgan, Oracle; Cisco, NetApp Earnings Late

Dow Jones futures fell modestly Wednesday night, along with S&P 500 futures and Nasdaq futures, after Apple (AAPL) once again led the stock market lower in a volatile session. Fed chief Jerome Powell said signs of a global economic slowdown are “concerning” but he remains “very happy” about the U.S. economy. Dow Jones stock Cisco Systems (CSCO) and NetApp (NTAP) were notable movers late on earnings. Dow component JPMorgan Chase (JPM) and Oracle (ORCL) were active after Warren Buffett, via Berkshire Hathaway (BRKB), took big new positions in the large-cap stocks. Warren Buffett also added to Berkshire’s big Apple stock holdings.


Dow Jones Futures Today

Dow Jones futures retreated 0.2% vs. fair value, even with Apple, JPMorgan and Cisco Systems climbing in extended trade. S&P 500 futures slid 0.3%. Nasdaq 100 futures lost about 0.2%. Stock futures have been up and down in this extended session. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular session.

‘Very Happy’ Fed Chief Says Global Signs ‘Concerning’

Fed chief Jerome Powell said Wednesday night that he is “very happy” with the economy right now. He said equity markets are just one part of a large economy, continuing to suggest that recent stock market struggles haven’t spooked Fed policymakers. Powell did say he’s concerned about signs of slowing in the global economy. He also said the central bank is watching housing closely, noting that many buyers have never seen 5% mortgage rates. Powell says Trump tariffs have not had much impact on the economy so far, but noted that expanded tariffs could hurt growth and boost inflation.

Powell’s “concerning” comments might be a hint that Fed rate hike plans could moderate, but generally the Fed chief seemed confident.

Stock Market Rally Continues To Weaken

The Dow Jones and S&P 500 index lost 0.8% in Wednesday’s stock market trading, suffering their fourth straight declines, with Apple, Cisco and JPMorgan all contributing. The Dow Jones fell below its 200-day line, joining the other major indexes, after breaching its 50-day line Monday. The Nasdaq composite shed 0.9%. The major averages reversed from early gains, in yet another dispiriting session since last week’s follow-through day confirming a new uptrend.

The stock market uptrend is under increasing pressure, though the Dow Jones and other major averages haven’t undercut recent lows. Investors should be extremely cautious about making new purchases and consider paring any recent holdings.

Cisco Earnings

Cisco earnings rose 23% vs. a year earlier, the best gain in years. Revenue rose 8%, the fourth straight quarter of slowly accelerating top-line growth. Cisco’s earnings guidance was in line, while the midpoint of the networking giant’s revenue outlook was slightly above consensus. There’s a growing hope that Cisco is successfully shifting from hardware to faster-growing, higher-margin software and services.

Cisco stock rose 5% late. Shares closed down 1.75%, their fourth straight loss. Cisco stock closed at 44.33, just below its 200-day line.

NetApp Earnings

NetApp earnings rose 32% to $1.06 a share, beating views by 7 cents. The data-storage giant’s revenue grew 7%, a slowdown, but just edging past consensus. NetApp sees Q4 EPS of $1.12-$1.18 vs. views for $1.12 and gave in-line revenue guidance. But NetApp stock tumbled 5.8% late. Shares fell 1.1% to 78.03 on Wednesday.

Warren Buffett Buys JPMorgan Stock, Oracle Stock

Warren Buffett’s Berkshire Hathaway bought more than 35 million shares of JPMorgan Chase in the third quarter, making an even-bigger bet on financials. Berkshire’s top holdings after Apple stock are Bank of America (BAC) and Wells Fargo (WFC). Buffett also added to other bank stock holdings.

JPMorgan stock rose 1.6% late after closing down 2.1% in a bad day for financials.

Buffett’s Berkshire also snapped up 40 million shares of Oracle. Oracle stock climbed 3.5% late following a 1.35% loss Wednesday.

Buffett Adds Apple Stock

Berkshire bought an additional 522,802 shares in Q3, continuing to increase its exposure to the iPhone maker.

Apple stock rose 0.3%. That’s just a sliver of Apple’s 2.8% regular-session loss, falling to a four-month low amid fresh negative analyst comments about weakening iPhone demand. After the close, Swiss-based AMS became the latest Apple supplier to cut guidance.

So why is Apple’s after-hours action notable. At this point, everything Apple is notable, at least for the broader market. Apple — as a member of the Dow Jones, S&P 500 index and Nasdaq composite — has been a huge factor in the stock market’s recent retreat. When Apple stock tries to rally, so do the major averages. When Apple heads lower, so does the market. So at this delicate stage, investors should keep a close eye on Apple stock.


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Originally posted 2019-09-19 23:25:22.


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