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Stock Futures Rise; Amazon, Intel, Microsoft Eye Breakouts

Stock futures for the Nasdaq soared early Friday as Amazon (AMZN), Intel (INTC) and Microsoft (MSFT) surged on strong earnings. S&P 500 futures rose modestly and Dow Jones futures fell slightly. Amazon, Intel and Microsoft signaled that they would clear or flirt with buy points at Friday’s open, along with IBD 50 stock SVB Financial (SIVB).

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Amazon, Intel and Microsoft are S&P 500 and Nasdaq giants, while Intel and Microsoft are also Dow Jones components.

On Thursday, the Nasdaq composite rallied 1.6%, fueled by a 9% rally in Facebook (FB). The S&P 500 and Dow Jones popped 1%.  The major averages all remained below their 50-day moving averages, even as Facebook shot up above its 50-day and 200-moving averages.

Stock Futures

Nasdaq 100 futures shot up 1.4% vs. fair value. That implies a Nasdaq composite move back to its 50-day line. S&P 500 futures advanced 0.2%. Dow Jones futures fell 0.3% vs. fair value. Keep in mind that overnight action in stock futures and individual stocks often doesn’t translate into actual trading in the next regular session.

The 10-year Treasury fell about 2 basis points to just under 2.97%. The yield had hit a four-year high of 3.02% this week.

Before the open, Dow Jones energy giants Exxon Mobil (XOM) and Chevron (CVX) will report first-quarter earnings, while the Commerce Department will release Q1 GDP figures at 8:30 a.m. ET.


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Amazon Earnings, Prime Fee Spike

The e-commerce giant’s revenue shot up 43% to $51 billion, easily beating views. But Amazon earnings of $3.27 per share obliterated analyst estimates for $1.26.  Amazon Web Services, the internet giant’s huge cloud-computing unit, continues to boom and account for a clear majority of operating profit. The company is upbeat about the current quarter.

Meanwhile, Amazon also said it would raise the annual cost of its Prime membership program by 20% to $119, from $99. Amazon recently disclosed that it has more than 100 million Prime members, who get free two-day shipping and many other benefits.

The stock leapt 7.1% to 1,626 before the open on the stock market today. That would be a new high and push Amazon above a 1,617.64 buy point from a cup base. Amazon at first glance has a handle, which would offer a lower entry. But a cup-with-handle base must be seven weeks long, and Amazon has not quite consolidated long enough.

Keep in mind that Amazon is in a very late-stage base. Late-stage bases can work but are less likely to be big winners and more likely to fail.

Amazon rose 4% to 1,517.96 on Thursday, back above its 50-day line.

Intel Profit, Guidance Strong

Intel EPS leapt 32% to 87 cents as sales grew 9% to $16.1 billion, both well above analyst views. The chip giant also guided higher for the current quarter, with sales up 10%. That would be the third straight quarter of accelerating top-line growth.

Intel vaulted 5.75% to 56.10 in premarket trading. That indicates Intel will easily reclaim a 53.88 flat-base buy point briefly claimed last week.

Microsoft Rises On Cloud Computing

Microsoft revenue rose 16% to $26.8 billion as earnings swelled 36% to 95 cents a share in its fiscal third quarter. Like Amazon, Microsoft is benefiting from cloud-computing offerings. The Intelligent Cloud unit, which includes server and Azure cloud infrastructure services, saw revenue pop 17% to $7.9 billion.

Microsoft shares initially fell before turning up late Thursday. Early Friday, the stock rose 3.3% to 97.35. That would put Microsoft just above a 97.34 flat-base entry.

SVB Financial Banks Big Profit

Nasdaq-listed SVB Financial earned $3.63 a share, up 90% vs. a year earlier and 50 cents above views. Revenue swelled 34% to 575 million, also comfortably beating analyst estimates.

The IBD 50 stock was not yet active early Friday but leapt 6.85% to 275 in late trade. SVB has a buy point of 271.89 from a small cup base.

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