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Trump ‘Feel’ In Focus; Facebook, Cisco, RH, E3 Are Too

Dow Jones futures were little changed early Monday morning, along with S&P 500 futures and Nasdaq futures after President Donald Trump clashed with other G-7 leaders over the weekend. Trump meets North Korea leader Kim Jong Un on Tuesday, betting on his “feel” to see if Kim is serious about giving up his nukes. Meanwhile, Facebook (FB), Cisco Systems (CSCO), RH (RH) and video game makers such Electronic Arts (EA) and Activision Blizzard (ATVI) will be in focus.

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Facebook stock will react to new data-sharing revelations. Cisco Systems CEO Chuck Robbins will give a Monday keynote at the Dow Jones tech giant’s Cisco Live event. RH, formerly Restoration Hardware, reports first-quarter results late Monday. The big E3 video game conference and related events showcase Electronic Arts, Activision Blizzard and others.

Facebook stock is in buy range, along with RH, Electronic Arts and Activision. Cisco is consolidating near highs and could soon offer a new proper entry point.

Dow Jones Futures Today

Dow Jones futures rose 0.1% vs. fair value, erasing a modest Sunday evening decline. S&P 500 futures edged lower. Nasdaq 100 futures were off 0.1%. Keep in mind that stock market futures and other overnight action often don’t translate into actual trading in the next regular session.

Trump on Saturday disavowed the joint G-7 statement that papered over differences in a tweet. Trump and top aides blamed Prime Minister Justin Trudeau for his renewed public criticism over new U.S. tariffs on Canada.

Meanwhile, expectations are low for President Trump’s summit with Kim Jong Un in Singapore. But Trump’s penchant for unexpected moves expand the range of possible outcomes. Trump said with “my feel” he expects to know “within the first minute” if Kim Jong Un is serious about giving up the North’s nuclear weapons.

The Dow Jones industrial average rose 2.8% last week while the S&P 500 index advanced 1.6%. Both the Dow Jones and S&P 500 moved above a sideways track. The Nasdaq composite climbed 1.2%, hitting a record high.

Facebook Stock

Facebook late Friday confirmed that it shared users’ personal information with companies in 2015, after the time when executives said the social network barred third-party developers from gaining access to data. That confirmed a Wall Street Journal report from after Friday’s market close.

That follows revelations last week that Facebook shared data with four Chinese companies. Those include telecom gear giant and handset maker Huawei, viewed with suspicion by U.S. intelligence.

Facebook stock dipped Friday night. Shares closed Friday up 0.5% to 189.10, ending a four-day slide and reclaiming a 188.42 buy point first cleared at the end of May. Can Facebook stock hold in a buy zone in Monday’s stock market trading?

Cisco Stock

Cisco Live 2018 in Orlando, Fla., starts Sunday and runs through Thursday. Topics include artificial intelligence, data centers and security. CEO Chuck Robbins speaks Monday morning.

Cisco stock closed at 43.48 on Friday, just below its 50-day moving average. Shares just cleared a 46.26 cup-base entry on May 10 (Cisco stock had formed handle-like pattern, but the overall base was too short to be a proper cup with handle.). Shares soon pulled back, tumbling below their 50-day line on May 17 after giving so-so guidance.

Cisco stock doesn’t have a proper buy point currently, but could form a flat base in another week.

RH Stock

The upscale furniture chain reports Q1 earnings late Monday. Wall Street expects earnings to explode to $1.10 a share from 5 cents a year earlier as a transition to a membership model pays off. Revenue should edge up 0.4% to $564 million.

RH stock rose 2.5% to 113.28, its sixth straight gain and hitting a new high. It’s still in buy range from a 109.63 entry cleared Wednesday.

RH stock has been extremely volatile after earnings. After tumbling 26% following Q1 2017 results, RH rose 22.5%-45% in the day after its next three quarterly results.

E3

The Electronic Entertainment Expo kicks off Tuesday, but several video game players are holding events ahead of the E3 open. Electronic Arts on Saturday said it would offer a subscription service for access to its games. Meanwhile, EA said “Battlefield 5” will feature a battle royale mode. Last-man-standing shooter games have become hugely popular, led by “Fortnite” from Epic Games. EA also vowed to address complaints about microtransactions in “Star Wars Battlefront 2.”

EA stock closed Friday at 137.87, at the edge of a buy zone from a 131.23 flat-base entry. Activision Blizzard is at 74.29, in range from a 73.60 cup-with-handle buy point. Take-Two Interactive (TTWO) is consolidating with a 119.01 entry, closing Friday at 113.42.

KKR Near Envision Healthcare Deal

Also, private-equity giant KKR (KKR) is close to a buyout of physician services firm Envision Healthcare (EVHC) for $5.5 billion plus assumed debt. KKR will pay $46 a share for Envision Healthcare, according to multiple reports. The deal, expected to be announced Monday, would be a small premium to Friday’s 43.64 close. But it’s a 70% bump above where Envision traded when it announced a strategic review last fall. Envision agreed to sell its ambulance business to a KKR portfolio for $2.3 billion in August 2017.

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