Stock Futures Soft; Verizon Upgraded, Alibaba Buys Big Box Stake | Stock News & Stock Market Analysis

Dow futures led the declines early Monday as stock futures sifted quietly lower ahead of a holiday-shortened week of trade.

XAutoplay: On | OffFutures for the Dow Jones industrial average hung 0.1% below fair value. S&P 500 futures were off almost 0.2%. Nasdaq 100 and Russell 2000 futures traced narrower losses.

Stock and bond markets will be closed on Thursday, and will run a shortened session on Friday with stock trading ending at 1 p.m. ET.

Tax overhaul news is likely to cool this week, with both the House and the Senate in recess for the Thanksgiving Holiday. White House budget director Mick Mulvaney said Sunday the administration would back removing a repeal of the Affordable Care Act mandate if that became an impediment to passing the overall tax package, some thing has led Susan Collins, the moderate Republican Senator from Maine, to say she would withhold her vote.  Senate GOP leaders hope to bring their bill before a vote next week, on order to remain on track to pass a fully reconciled bill before the end of the month.

Verizon Upgraded,

Trade was mild among Dow and Nasdaq 100 stocks ahead of the open. Merck (MRK) led the declines on the Dow, slipping 0.9% The stock is feeling for a bottom after four-weeks of brutal declines.

Verizon (VZ) led the Dow industrials, up 0.8% in the premarket session after receiving an upgrade to outperform, from market perform, from Wells Fargo. The note also lifted Varizon’s price target to 50, from 48.  Verizon shares ended Friday down 11% from an October high.

Apple (AAPL) traded effectively flat, while the four FANG stocks held to gains or losses of less than 0.2%.

Chip developer Cavium (CAVM) traded up 8% after the company accepted a $6 billion takeover bid from Bermuda-based Marvell Technology Group (MRVL). The tax-advantageous deal is expected to close in mid-2018.  Marvell shares slipped 0.2% before the open.

Cavium, an IBD 50 stock, finished last week extended after breaking out above a 70.18 buy point in a cup-with-handle base. Marvell was beyond buy range above an 18.10 buy point, also in a cup-with-handle base.

Urban Outfitters (URBN) strengthened 2% in premarket trade, ahead of its third-quarter report due out after the close. The owner of the Urban Outfitters and Anthropologie chains last week surged 10% in strong trade, lifting the stock 72% above a June low and leaving it just below the midpoint of a deep, 12-month consolidation.

China’s Alibaba Group Holdings (BABA) rose more than 1%, on news reports that the e-commerce giant is taking a $2.9 billion stake in China-base big box retailer Sun Art Retail Group. Alibaba, an IBD Leaderboard listing, ended Friday in a test of support at its 50-day moving average, after clearing a 177.10 buy point in mid-September.

German Stocks Recover; Economic Indicators Coming Up

A simple session for economic news, with only leading economic indicators for Ocrtober due out from the Conference Board at 10 a.m. ET.

Across Asian markets, in Japan. Tokyo’s Nikkei 225 dropped 0.6%, clipping a three-day rebound. China’s markets posted modest gains, with Hong Kong Hang Seng Index advancing 0.2%.

Europe’s markets were positive, with the DAX in Frankfurt and CAC-40 in Paris up 0.2% apiece, after the DAX rebounded from sharp early losses that followed a break down in parliament’s attempt to build a coalition government. The result left Chancellor Angela Merkel floundering for control and Europe’s largest economy with no majority, and in the hands of a caretaker government.


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Originally posted 2017-11-20 14:56:18.


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