Netflix Earnings, Amazon Prime Day; Apple Stock, Boeing Near Buys

Dow futures rose modestly Sunday afternoon, along with S&P 500 futures and Nasdaq futures. Apple (AAPL) has a new buy point. Netflix (NFLX) reports earnings Monday while fellow FANG stock (AMZN) kicks off its fourth annual Amazon Prime Day. Boeing (BA) and Airbus (EADSY) face off at the U.K. Farnborough Airshow, with Boeing stock forging a new buy point and Airbus stock breaking out. Bank of America (BAC) continues bank earnings.


Last week, the Nasdaq composite rose 1.8%, hitting a new record high. The Dow Jones climbed 2.3%, reclaiming its 50-day moving average. The S&P 500 index advanced 1.5% to a five-month high.

Dow Futures Today

Dow futures climbed 0.25% vs. fair value. S&P 500 futures rose 0.15%. Nasdaq 100 futures were 0.2% higher.

Apple Stock Sets Up New Buy Point

After five weeks, Apple stock has a flat base with a 194.30 buy point. It’s really a base-on-base above a double-bottom pattern with a 179.04 buy point. The Dow Jones stock has been consolidating since June 7. Therelative strength line, which tracks a stock’s performance vs. the S&P 500 index has been going sideways again since a big breakout on an earnings-buyback-Buffett triple whammy.

Netflix Earnings

Analysts expect Netflix earnings to soar 433% to 80 cents a share from 15 cents a year ago, as revenue grows 41% to $3.94 billion. Keep in mind that these are adjusted earnings. Netflix is cash flow negative and expects to remain so for years to come. Content costs are high, but it can spread those out of a huge global subscriber base.

The internet TV giant giant has forecast adding 6.2 million subscribers in the second quarter, with five million from overseas. That would boost its total to 131.2 million subscribers worldwide. Subscriber guidance also will be key.

Netflix stock fell 4.3% to 395.80 on Friday, closing below its 21-day moving average for the first time in three months but still within a short consolidation. Netflix has run up 106% so far in 2018, easily outpacing its fellow FANG stocks.

Netflix stock tends to have big moves after earnings. Shares rose 9.2% after Q4 2017 earnings results, 10% after the Q3 report, fell 1.6% following Q2’s figures and up 13.5% after the Q1 2017 report.

Amazon Prime Day 2018

Amazon Prime Day is a 36-hour event, starting 3 p.m. ET on Monday running through 3 a.m. Wednesday ET. The deals on Amazon Prime Day typically are so-so, but they still generate strong sales and big Amazon Prime membership. Amazon stock rose 6% last week, hitting a new high. Shares have climbed 55% in 2018.

Meanwhile, a report surfaced Friday that Amazon could make its own networking gear soon for Amazon Web Services. Cisco Systems (CSCO) and Arista Networks (ANET) fell more than 4% Friday on that report.

Boeing, Airbus Orders Dogfight At Farnsborough Airshow

The aerospace industry’s biggest event, which alternates with the Paris Air Show each year, runs July 16-22. Expect lots of orders for Boeing and Airbus.

On Sunday, Boeing CEO Dennis Muilenburg said the aerospace giant will decide next year whether to build a midmarket jet, dubbed the “797” by the press and analysts. “Our plan is to make a launch decision on that airplane in 2019. We still are targeting a 2025 entry-into-service date.”

Boeing stock pulled back from a June 7 peak amid China trade war fears, triggering a sell signal. But shares reclaimed their 50-day line Friday. Boeing stock, a Dow Jones component, now has a new buy point of 374.58.

Meanwhile, Airbus stock cleared a 30.68 buy point on Friday, soaring 8.4% for the week. But volume was below normal on Friday and for the week.

Bank Of America Earnings

Bank of America earnings are on tap early Monday.

Wall Street expects BofA to report a 21% jump in EPS on revenue of $22.48 billion, down 1.5%. But bank stocks have been struggling amid concerns that a flatter yield curve will squeeze banks’ profit margins on loans.

JPMorgan Chase (JPM) and Citigroup (C) topped earnings views Friday while Wells Fargo (WFC)missed. But all three bank stocks fell Friday.

Bank of America stock fell 0.8% on Friday, stuck below its 50- and 200-day lines. BofA’s RS line is at its worst levels of 2018.


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Originally posted 2019-09-19 23:17:14.


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