Dow Jones Futures: Workday Stock, VMware Stock Signal Breakouts On Earnings

Dow Jones futures rose slightly late Thursday, along with S&P 500 futures and Nasdaq futures, after the major averages rallied to close higher. Workday (WDAY), Palo Alto Networks (PANW), Splunk (SPLK) and VMware (VMW) all reported better-than-expected earnings late Thursday. Workday stock and VMware stock signaled possible breakouts at Friday’s open. Splunk stock could test key support levels, while Palo Alto Networks stock is trying to break a downtrend.


Workday stock, Palo Alto stock, VMware stock and Splunk stock are all in the software sector.

Dow Jones Futures Today

Dow Jones futures rose 0.2% vs. fair value. S&P 500 futures climbed nearly 0.2%. Nasdaq 100 futures were up 0.2%. Remember that overnight action in Dow futures, Workday stock and elsewhere doesn’t necessarily translate into actual trading in the next regular session.

Stock Market Retreats

A day after the stock market follow-through confirmed a new rally, the major averages were up and down, then fading into the close. The Dow Jones fell 0.1%, the S&P 500 index shed 0.2%, and the Nasdaq composite lost 0.25%. Apple (AAPL) and Microsoft (MSFT), the world’s most valuable companies, both fell 0.8%.

Workday Earnings

Workday earnings jumped 29% to 31 cents a share, defying views for a sharp drop to 14 cents. Revenue rose 34% for the human capital and financial management software company. Billings boomed 48%.

Workday stock rose 9.4% to 159 in late trading. That would push shares above a 157.22 consolidation buy point. Workday stock had hit resistance around 147 in the base.

The relative strength line, which tracks a stock’s performance vs. the S&P 500 index, had closed just below an all-time high even with Workday stock 7% off its peak.

Palo Alto Earnings

Fiscal first-quarter Palo Alto earnings ran up 58% to $1.17 per share, with revenue rising 31%. Both topped consensus. The cybersecurity software maker also guided up for the current quarter.

Palo Alto stock was up and down in late trade, edging higher. Shares hit a nine-month low earlier this month and are still below their 50-day and 200-day lines.

VMware Earnings

VMware earnings climbed 26% while revenue rose 14% to $2.2 billion. The virtualization software maker is ramping up software-as-a-service offerings and gave bullish guidance for the next fiscal year.

VMware stock rose 9.2% to 176.30 in late trade. Shares had closed up 1.1% to 161.48, just below a 161.50 handle buy point after breaching that level intraday.

VMware’s RS line also is just below record levels.

Splunk Earnings

Splunk earnings rose 36% to 38 cents a share, topping views. Revenue grew 40% to $481 million, with the top-line gain accelerating modestly for a second straight quarter. The data analytics software firm, which is expanding into cybersecurity, guided higher for current-quarter revenue.

Splunk stock rose 4.3% to 106 in late trading after climbing 2.5% to 101.63 in Thursday’s session, closing just below its 50-day line. Shares are signaling a move above that key support level and testing their 200-day line.


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Originally posted 2019-09-19 23:26:44.


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