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S&P 500, Dow Jones, Nasdaq Futures Signal Significant Losses; These 5 Stocks Just Reported Earnings | Stock News & Stock Market Analysis

Futures for the S&P 500 index, Dow Jones industrial average and Nasdaq 100 fell significantly early Thursday morning. On Wednesday, the major averages reversed lower following hawkish Fed minutes after the S&P 500 index and Dow Jones had moved intraday above their 50-day moving averages. It was the second straight decline for those two indexes, while the Nasdaq composite edged lower for a third straight session.

X Meanwhile, Roku (ROKU), Stamps.com (STMP) and Trex (TREX), leading stocks that closed near buy points, reported earnings after the close. Ultra Clean Holdings (UCTT) and Applied Optoelectronics (AAOI) were notable losers late on results.

Roku plunged while Stamps.com rallied in extended trade. But overnight action doesn’t always translate into how a stock will open or close in the next session.

S&P 500 index futures fell 0.4% vs. fair value. Dow Jones futures lost 0.5%. Nasdaq 100 futures retreated 0.55%.

Roku

Roku earned 6 cents a share in its fourth quarter, up from break-even a year earlier and defying views for an adjusted loss of 11 cents. Revenue rose 28% to $118.3 million, modestly above analyst estimates.

But Roku sees Q1 revenue of $120 million to $130 million; analysts estimate $130 million.

Roku had closed down 0.2% at 51.10 in Wednesday’s stock market trading, working on the right side of a cup base with a potential buy point of 58.90.

But Roku stock crashed nearly 22% in late trading to 40.05, suggesting a test of the consolidation’s low.


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Stamps.com

Stamps.com earned $4.68 a share adjusted, up 71% vs. a year earlier. That obliterated estimates for $2.75, up 1%. Revenue climbed 25% to $132.5 million, comfortably above views for $119 million. For 2018, Stamps.com sees EPS of $8.80-$9.80 on revenue of $530 million to $560 million. Analysts had expected EPS of $8.21 on revenue of $525 million.

Stamps.com stock rose 8.6% to 200.79 in volatile action late after closing down 2.7% to 184.95.

Stamps.com is in a consolidation with a 231.23 buy point, though aggressive investors could use 211.50 as an early entry.

Trex

The maker of imitation-wood fencing and decking products earned 62 cents a share, up 44% and 8 cents above views. Revenue climbed 28% to $122.2 million, also topping. Trex gave Q1 revenue guidance in line with analyst forecasts.

Trex closed up 0.1% to 111.81 on Wednesday, just above its 50-day line in a flat base with a 120.50 entry. Trex dipped to 111 after hours.


IBD’S TAKE:As today’s earnings reports show, holding or buying a stock can be risky heading into an earnings report. Here’s an earnings options strategy that can help you cash in on post-earnings stock gains, while minimizing the risk from a weak quarter.


Ultra Clean Holdings

The chip equipment maker earned 59 cents a share, up 64% but missing by a penny. Sales grew 43% to 248.9 million, modestly topping views.

Shares fell 8.3% in late trade after closing down 2% at 19.96. Ultra Clean stock is well off its October highs and below its 50-day and 200-day lines.

Some other chip gear stocks edged lower late. Chip stocks were tech laggards on Wednesday after being big winners Tuesday.

Applied Optoelectronics

The fiber-optic gear maker, which was a huge winner from May 2016 to July 2017, had mixed Q4 results late. Earnings per share rose 6% to 89 cents, defying views for a drop to 82 cents. But revenue fell 6% to $79.85 million, below forecasts for $85 million.

Applied Opto also gave guidance that was well below views. The company did announce a contract with Facebook (FB).

Shares tumbled 12% late after closing up 34.55.

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