Stocks Open Higher After Budget Deal; Amazon Targets FedEx, UPS | Stock News & Stock Market Analysis

Stocks rumbled higher out of the starting gate on Friday’s open, as a federal budget agreement ended a government shutdown and hte market looked to end a tough week on an up note.

XThe Dow Jones industrial average and S&P 500 jumped 1.1% each. The Nasdaq Composite opened 1.3% higher, as Nvidia (NVDA), Apple (AAPL) and (AMZN) posted powerful opening gains.

A pre-sunrise House vote in Washington, D.C., delivered a two-year budget agreement to the President, who signed the bill before the market opened Friday, providing a quick finish to the government shutdown that went into effect at midnight Thursday.

The dollar turned mixed, down against the euro and up vs. the yen. Bonds fell, lifting the 10-year yield to 2.86%. Commodities moved generally lower, with oil leading the declines. U.S. benchmark West Texas Intermediate traded down more than 1% and just above $60 per barrel.

Friday’s economic calendar is slim, showing only December wholesale inventory estimates from the Commerce Department at 10 a.m. ET.  Baker Hughes’ (BHGE) weekly rig count report, due for release at 1 p.m. ET, will be worth watching, however, as oil prices fight to hold the $60 mark.

Nike Leads Dow; Nvidia, FireEye Spike; FedEx, UPS Hammered

Essentially all of the 30 Dow Jones industrial names opened higher Friday. Nike jumped 2.4% to seize the lead, as the stock fights to retake support at its 10-week moving average.

Apple popped 1.5% and all four FANG stock tech leaders surged. Facebook (FB) and Alphabet (GOOGL) led, up 2% each.

Amazon advanced 1% after news reports revealed its plans to launch a business delivery service, positioning the tech juggernaut to compete directly with FedEx (FDX) and United Parcel Service (UPS).

The Wall Street Journal reported Amazon would launch its SWA, Shipping With Amazon, service in Los Angeles over the next several weeks, then roll it out to additional markets. The company announced on Thursday plans for Amazon Prime home delivery of groceries from its recently purchased Whole Foods grocery chain.

Shares of FedEx slipped 0.7%, UPS dived 2.6% each in early trade.

Tesla (TSLA) dipped 0.3%, following Thursday’s 8.6% loss. The iconoclastic innovator’s fourth-quarter results, released late Wednesday, left investors unimpressed. Shares start Friday back below their converged 10- and 40-week moving averages, still attempting to start up the right side of a possible five-month base pattern.

Chip stocks, which have acted as a recent bellwether for the market’s direction, were generally positive. Nvidia (NVDA) bolted 5.9% higher after the company turned in a big fourth-quarter revenue and earnings beat late Thursday. The IBD 50 stock’s shares had dropped more than 8% on Monday, stopping in a test of support at the stock’s 10-week moving average. Seesaw trading left shares down 6.9% for the week at Thursday’s close.

FireEye (FEYE) clocked an early 11% gain. After Thursday’s close, the security software leader reported a shift from loss to profit during its fourth quarter and ratcheted its first-quarter revenue outlook above consensus views. The stock has been fighting to regain its 50-day moving average, after cutting below that line in heavy trade Monday. Shares are attempting to start up the right side in a four-month consolidation.

Among the harshest early losses, Expedia (EXPE) toppled 13% as its late-Thursday report showed a wide fourth-quarter earnings miss and revenue also below analysts’ targets. The online booking heavyweight has been crawling along the bottom of a consolidation since Oct. 27, when it fell 16% following its third-quarter report.

Bitcoin Rebounds After Early Dive; Overstock Jumps

Bitcoin recovered from an early dive that took the price below $7,800 on Friday, and was trading just above $8,400. That was less than 3% below its high from Thursday and down about 1% from a week earlier. Among Bitcoin-related stocks:

  • Riot Blockchain (RIOT): up 3.6%
  • Bitcoin Investment Trust (GBTC): up 4.1%
  • Mara Patent Group (MARA): down 5.4%
  • (OSTK): up 2.6%

Global Stock Markets: Europe Steadies, China Dives

Overseas markets saw some heavy selling but, in general, sellers appeared to be tapping the brakes. China’s markets suffered some of the heaviest losses, as the Shanghai Composite dumped 4.1% and Hong Kong’s Hang Seng lost 3.1%. Both indexes dropped more than 10% below recent highs and into corrections. In Japan, Tokyo’s Nikkei 225 fell 2.9%, leaving it above the low that followed its 4.7% dive on Tuesday. Tuesday’s loss drove the index into correction territory.

Friday’s selling was more moderate in Europe, with the leading benchmarks in Paris and Frankfurt down less than 1% in afternoon trade. For the week, Frankfurt’s DAX was off 4.6%, London’s FTSE 100 had fallen 4% and the CAC-40 in Paris had a 4.5% loss. Only the DAX had fallen more than 10%.


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Originally posted 2018-02-11 22:02:35.


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