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Futures Flat With Blue Chip, Oil Names Set To Report

The leading indexes were little changed in after hours trade Thursday, following a chip-sector meltdown that dragged down the Nasdaq and S&P 500, and left the Dow with its second straight decline.

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Stock futures for the Nasdaq 100 and the Dow Jones industrial average dipped to narrow gains early Thursday evening. S&P 500 futures managed a fractional gain.

Dow component General Electric (GE) reports on Friday. GE has been a big laggard on the index this year.

Another Dow laggard, Procter & Gamble (PG), reported better-than-expected Q1 results Thursday morning. P&G also said it would pay $4.2 billion to acquire the consumer health unit of Germany’s Merck KGaA. P&G tumbled 4.2% to its worst level in more than two years.

Growth Stocks Pummeled After Hours

Investors showed growth stocks little mercy in after-hours trade Thursday. Atlassian (TEAM) tumbled 11% after its fiscal third-quarter results bested expectations but its outlook disappointed analysts. That positioned the stock for a gap-down open on Friday that would put it below its 10-week moving average. The move would erase most of the gains accrued following a January breakout above a 53.55 buy point.

Footwear brand Skechers (SKX) imploded 23% in Thursday’s extended session. The Manhattan Beach, Calif., brand narrowly topped earnings and revenue estimates. But weak guidance was the bugbear, sending futures into a tailspin and setting up the stock to open sharply below its 10-week moving average on Friday.

Chip Stocks, Crude Oil Prices In Focus Friday

Chip stocks could be a determining factor in Friday’s trade, if value investors step in after Thursday’s losses. The Philadelphia Semiconductor Index dumped 4.3% Thursday — its worst performance since early February. The index’s biggest decliners on Thursday — MKS Instruments (MKSI), Lam Research (LRCX) and Applied Materials (AMAT) — were effectively flat in extended trade.

Crude oil prices backed off a fraction on Thursday. U.S. benchmark crude held well above $68 per barrel — snug up against a three-year high and up 1.3% on the week so far. Oil and gas groups ended Thursday’s session largely flat, although WildHorse Resource Development (WRD) rose 2.5% and Diamondback Energy (FANG) added 1.4%.

Oil prices will be a point of interest tomorrow as Baker Hughes (BHGE) releases its weekly rig count report at 1 p.m. ET. Baker Hughes also reports its first-quarter results Friday morning. Field services giant Schlumberger (SLB) also plans to report Friday morning.

Consensus views project Baker Hughes will report a 500% earnings gain and a 140% surge in revenue as the company continues to ride the boost from its combination in July with the oil and gas unit from General Electric. Baker Hughes shares on Thursday were up 32% from a February low and below a 37.33 buy point in a possible bottoming base.

Schlumberger is forecast to post a 48% earnings gain. That would mark its fourth straight advance as it recovers from nine quarters of declines.

Other names expected to report Friday include Gentex (GNTX), Stanley Black & Decker (SWK) and TransUnion (TRU).

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