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Stock Futures Mixed, Recovering; Netflix Soars, This China Name Dives | Stock News & Stock Market Analysis

Stock futures battled back into mixed trade early Tuesday during a busy morning in which federal employees headed back to work, markets reacted to earnings news and earthquakes and volcanoes rattled several corners of the globe.

XFutures for the Nasdaq 100 shed early losses and rose 0.2% above fair value, bolstered by strong early moves from Netflix (NFLX) and Adobe Systems (ADBE). Futures for the Dow Jones industrial average and the S&P 500 continued to battle fractional losses.

Smallcaps lagged, leaving futures for the Russell 2000 0.2% below fair value.

In Washington, lawmakers cobbled together and President Trump signed a three-week spending extension, reopening federal offices shuttered since midnight on Friday. The deal keeps federal lights on through a Feb. 8 deadline, but immigration policy remains a critical hurdle to a broader budget agreement.

Markets across China and Japan posted a powerful rally Tuesday, as investors responded to the federal spending agreement in the U.S., as well as to the boosted international growth forecast released by the International Monetary Fund on Monday.

Hong Kong’s Hang Seng index surged 1.7% and the Shanghai Composite zoomed ahead 1.3%, while Tokyo’s Nikkei 225 also posted a 1.3% advance — retaking its Jan. 18 peak to set a new record.

In Europe, stocks were recovering, after apparently reacting to earthquakes overnight in Alaska, Indonesia and Papua, New Guinea triggered a set of tsunami warnings. A volcanic eruption on Monday had triggered an evacuation in the Philippines, and another apparent eruption occurred in Japan.

Netflix Spikes, Adobe Upgrades, New Oriental Misses

Netflix powered up more than 10% ahead of the open, after meeting analysts’ fourth-quarter earnings targets, beating earnings expectations ans scoring a big win in new subscribers — adding 8.3 million during the quarter vs. its guidance for 6.3 million.  Netflix is extended above a 204.48 buy point in a flat base.

IBD 50 stock Adobe Systems powered up 2.4% in premarket trade. The company updated its fiscal first quarter and full-year guidance, saying its tax rate will fall “substantially” under recently reformed tax rules. Adobe is extended above a 186.37 flat base buy point.

Many China names were under pressure, despite the overnight rally in Hong Kong and Shanghai.

New Oriental Education & Technology (EDU) tumbled more than 3% lower, after missing analysts’ fiscal second-quarter earnings targets, but bating on its revenue line and forecasting above consensus revenue in the third quarter. The premarket moves suggests the stock is set to wipe out its remaining gain from an early January breakout, and fall back to a test of support at its 10-week moving average.

Peer Tal Education (TAL) dropped 2% in premarket trade. China-based search engine giant Baidu (BIDU) slipped 1.1%, after a downgrade to hold, from buy, by Jefferies.

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