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IBM, Cisco, American Express, EBay, Alcoa Stocks Move Late

Dow futures were little changed late Wednesday, along with S&P 500 futures and Nasdaq futures. Dow Jones giants IBM (IBM), Cisco Systems (CSCO) and American Express (AXP) were notable movers late. So were eBay (EBAY) and Alcoa (AA).

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IBM stock, American Express stock, eBay stock and Alcoa stock were moving on earnings. Cisco stock rallied on reports that Amazon.com (AMZN) will not start selling its own network switches.

Dow Futures Today

Dow futures were just below fair value. S&P 500 futures fell a fraction. Nasdaq 100 futures were essentially flat.

During Wednesday’s session, the Dow Jones and S&P 500 index rose modestly while the Nasdaq composite fell less than one point. But beneath the quiet stock market averages, several quality breakouts arose. That’s encouraging, because breakouts have been scarce in the current stock market uptrend.

IBM Stock

IBM earnings topped second-quarter views, with revenue rising vs. a year earlier for a third straight quarter. Its Strategic Initiatives businesses saw revenue grow 15%, a positive sign for the ongoing turnaround.

IBM stock climbed 2.9% late. IBM stock closed up 0.7% to 144.52, finding support at its 50-day moving average. But its relative strength line, which tracks a stock’s performance vs. the S&P 500 index, is still close to a 10-year low.

Cisco Stock

Cisco stock rallied 2.8% late on multiple reports that Amazon Web Services will not move toward building its own network switches.

MarketWatch and CNBC cited this Cisco statement: “Cisco and AWS have a long-standing customer and partner relationship, and during a recent call between Cisco CEO Chuck Robbins and AWS CEO Andy Jassy, Andy confirmed that AWS is not actively building a commercial network switch.”

Cisco stock fell 4.1% on July 13 on a report that Amazon would compete in switches. Arista Networks (ANET) also rallied late following a July 13 tumble.

EBay Stock

The online seller beat earnings views, but eBay missed slightly on revenue and gave Q3 guidance slightly below analyst forecasts. EBay stock sank 5.4% late. Shares sank 5.6% after eBay’s Q1 report and 4.1% after its Q4 earnings report, with shares continuing to fall for a few more sessions in both cases.

American Express Stock

American Express earnings squeaked past views, but revenue came in just below estimates. Shares of the Dow Jones credit card giant fell 3%. American Express stock rallied 1.8% to 102.98 during the regular session, just below a 103.34 flat-base entry.

Investors may have been tempted to buy AmEx during Wednesday’s session, but that would have been doubly risk. First, investors should be wary about buying any stock heading into earnings. Meanwhile, wait for a stock to break out past a clear buy point. AmEx stock came close but never did.

Alcoa Stock

Alcoa earnings cleared Wall Street forecasts, but the aluminum giant cut its full-year outlook, in part due to steel and aluminum tariffs imposed by President Donald Trump. Trump hiked aluminum tariffs to help domestic producers, But Alcoa, with global production and supply chains, may be hurt.

Alcoa stock was up and down in late trading, falling 4% initially, then briefly turning positive before sinking 1.8%. Alcoa closed just below its 50-day and 200-day moving averages.

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