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Tesla, Spotify, Square Fall; Tableau Eyes Breakout

Dow Jones futures fell modestly overnight along with S&P 500 futures and Nasdaq futures after an Apple (AAPL) rally failed to lift the major stock market averages on Wednesday. Tesla (TSLA) tumbled after reporting a $1 billion cash burn and Elon Musk took aim at “boring” analysts.

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Apple Music-rival Spotify (SPOT) fell late. Square (SQ) sold off on weak guidance, following PayPal (PYPL) diving below a key technical level, as “old” payment stocks stood out. Meanwhile, Big Data software maker Tableau (DATA) soared on strong revenue, signaling a likely breakout Thursday.

Apple Fails To Lift Stock Market

The Nasdaq rose modestly for much of Wednesday’s session, fueled by Apple’s 4.4% gain. But the Dow Jones and S&P 500 never made much progress, even though Apple is the top weight in those indexes as well. Stocks lost ground following the Fed meeting, even though policymakers left Fed interest rates steady and offered few surprises. The Nasdaq fell 0.4%, while the S&P 500 and Dow each slid 0.7%.

Apple failed to lift stock market indexes because the tech titan largely reflected its big shareholder returns as well as its thriving services business, while iPhone sales were a little light. That doesn’t provide coattails to chipmakers and other iPhone suppliers.

Dow Jones Futures

Dow Jones futures fell 0.3% vs. fair value. S&P 500 futures lost 0.3%. Nasdaq futures retreated 0.3%. Keep in mind that stock market action overnight, from Dow Jones futures to Tesla and Square, often doesn’t translate into how stocks trade in the following session.

Tesla Burns Cash, Musk Burns ‘Boring’ Analysts

Tesla reported a smaller-than-expected loss. Model 3 production is steady, but still well below prior projections. Tesla burned through $1.05 billion in cash in the first-quarter, slightly more than expected. The electric-car maker has $2.7 billion in cash on hand.

Tesla stock fell nearly 5% in late trading, with selling picking up as Elon Musk held a long, unusual post-earnings conference call. He cut off “boring” analysts’ questions, which were “not cool.”

The stock had risen slightly during Wednesday’s session but found resistance at the 50-day line.

Spotify Subscriber Growth Not Enough

Spotify said it has 75 million paying subscribers, in line with forecasts and well above Apple Music’s 40 million. But that disappointed investors. Shares tumbled 9.2% to 154.40 late. During the regular session, Spotify rose 3.1% to 170, moving past a 169.10 IPO base. Spotify directly listed its stock on April 3, bypassing an IPO.

Square Earnings Guidance Light

Square met earnings views, with revenue topping forecasts as Bitcoin transactions helped. But the $34.1 million in Bitcoin revenue came with $33.9 million in costs. The mobile payments firm gave weak earnings guidance. Square sank 6.9% in late trade. During the regular session, Square rose about 1% to 48.66, but hit 50-day resistance.

Also in the regular session, PayPal sank 4.1% to 71.73, closing just below its 200-day moving average for the first time since late 2016. PayPal fell as Amazon offered discounts to retailers using its Amazon Pay option. That also follows former parent eBay (EBAY) cutting close ties with PayPal.

While “new” payments stocks Square and PayPal ran into trouble, Mastercard (MA) jumped into a buy zone on strong earnings Wednesday. Visa (V) also is in buy range following its earnings last week.

Tableau Pops On Earnings

The Big Data software firm reported a 7-cent adjusted profit and $246.2 million in revenue, based on new accounting standards. By its old accounting, Tableau lost 19 cents a share on revenue of $224 million.

Analysts, apparently relying on the old accounting standard, had expected a 19-cent loss on revenue of $218 million.

Tableau jumped 6.5% to 90.75 in late trading. It has an 86.14 cup-with-handle buy point.

The RS line hit a new high Wednesday ahead of the stock, a bullish move.

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