Stocks Rise, Fight To Extend Rally As Apple Edges Up, Arista Dives | Stock News & Stock Market Analysis

Stocks opened to narrow losses Friday, then reversed into tight gains as the major indexes fought to add a sixth day to their rebound rally before heading into the holiday weekend.

X The Dow Jones industrial average backed out of a fractional loss and gained 0.1%. The S&P 500 dipped 0.1%, then battled to a fractional gain. The Nasdaq Composite slipped 0.2%, then pulled up to rise 0.1%, as Apple (AAPL) reversed its early loss and as Alphabet (GOOGL) led gains among three of the four among FANG stocks.

The action across global stock markets was positive. Tokyo’s Nikkei 225 ended the week on an affirmative note, climbing 1.2% Friday and rebounding 1.5% for the week. China’s markets are closed for the country’s Lunar New Year holiday.

In Europe, the leading benchmarks continued hammering out solid gains in afternoon trade. The CAC-40 in Paris led the advance with a 0.9% gain.

Housing starts jumped in January to their highest level in more than a year, the Commerce Department reported, reaching an annualized rate of 1.326 million. That was up from a rate of 1.21 million starts in December, easily outstripping consensus expectations for a rate of 1.232 million starts. Building permits, which provide a gauge of upcoming activity, were issued at a pace of 1.396 million, up from December’s 1.3 million rate, and beating forecasts for a steady 1.3 million pace.

U.S. stock and bond markets will be closed on Monday for the Washington’s Birthday holiday.

Coca-Cola, Jacobs Engineering Climb; Arista, Cohu, Cognex Take Hits

On the Dow, blue chips balanced out pretty quickly between decliners and gainers. Coca-Cola (KO) popped 1% to take an early lead after its fourth-quarter results cleared estimates and full-year guidance topped expectations. Coke’s shares recovered nearly 4% this week, seeking to regain support and trading about 8% below their Jan. 26 high.

Apple opened down 0.3%, but quickly reversed to a 0.4% gain. Five sessions of mostly strong-volume gains have hoisted the stock back above its 50-day moving average, and turned its Relative Strength line from a negative to a positive indicator. Friday will be a test to see whether Apple can hold support at its 50-day line.

The four FANG stock tech leaders posted mild gains and losses. Google parent Alphabet led the group with a 0.6% gain. Swiss-based drugmaker Roche Holding (RHBBY) said it would pay $1.9 billion to acquire Flatiron, a New York-based developer of software for cancer records-keeping and research. Alphabet’s Google Ventures had reportedly taken a stake in Flatiron, along with Roche and First Round Capital.

Earnings news was having some impact on premarket action. In addition to Coca-Cola, big names reporting early included Deere & Co. (DE), up 0.7%, Campbell Soup (CPB), down 3.2%, and Kraft Heinz (KHC), down 6.4%.

IPO Mulesoft (MULE) kicked up an early 11% gain after reporting late Thursday a loss of 12 cents a share and a 60% revenue gain, meeting analyst estimates for its fourth quarter. Full-year guidance topped views. The stock gained 9% for the week through Thursday, trading 11% below a May high and up 54% from their March 2017 IPO price.

Investors continued to penalize earnings misses harshly, sending chip-equipment maker Cohu (COHU) down 14% after fourth-quarter earnings and first-quarter guidance fell short of targets.

Arista Networks (ANET) tumbled 15%. The IBD 50 leader reported late Thursday its earnings were stronger than expected in the fourth quarter, but revenue only narrowly topped targets and the company’s first-quarter outlook disappointed investors. The stock had punched 13% higher for the week through Thursday. The opening pullback stopped just short of the stock’s 10-week moving average.

Other stocks taking hard premarket hits following earnings included Cognex (CGNX), down 5%, Yamana Gold (AUY), down 8% and LogMeIn (LOGM), down 7%.


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Originally posted 2019-09-19 23:09:44.


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