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Trump-Kim Summit On Tap; These 4 Stocks Are Big Movers Late

Dow Jones futures were steady early Tuesday morning, as President Donald Trump and North Korean leader Kim Jong Un meet. S&P 500 futures and Nasdaq futures also were little changed during the ongoing Trump-Kim summit. ET. RH (RH), Dave & Buster’s (PLAY), Urban Outfitters (URBN) and KMG Chemicals (KMG) rose late. Meanwhile, Google parent Alphabet (GOOGL) has formed a new buy point.

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Urban Outfitters, KMG Chemicals and Alphabet boast Composite Ratings of at least 95, a hallmark of big stock market winners. RH, formerly Restoration Hardware, has a good-but-not great 88 Composite Rating out of 99, but improving earnings and stock price performance bode well for continued improvement. Former leader Dave & Buster’s has a mediocre 59 CR.

Trump-Kim Summit

President Trump and Kim Jong Un began their historic meeting in Singapore shortly after 9 a.m. Tuesday local time, or 9 p.m. ET Monday. Trump said “we will have a terrific relationship, I have no doubt,” in brief remarks to reporters.

After a one-on-one meeting that Trump said was “very good”  and Kim a “prelude to peace,” the two leaders began a working lunch with senior U.S. and North Korean officials.

The Trump-Kim summit isn’t expected to lead to a breakthrough. But with two leaders prone to surprise, bellicose statements and actions, stock market investors were wary of the wide range of possible outcomes and risks.

Dow Jones Futures

Dow Jones futures were 0.1% above fair value. S&P 500 futures edged up about 0.1%. Nasdaq 100 futures were slightly higher. Keep in mind that stock market futures and other overnight action often don’t translate into trading in the next regular session.

During Monday’s stock market trading, the Nasdaq composite rose 0.2%, the S&P 500 0.1% and the Dow Jones just a fraction. The major stock market indexes pared gains into the close.

RH Stock

The upscale home furnishings retailer reported blowout first-quarter earnings. RH earnings skyrocketed 2,560% to $1.33 a share, easily beating analyst views for $1.01. Revenue unexpectedly dipped to $557 million, defying views for a fractional gain to $564 million.

RH also guided earnings estimates higher for the current Q2 and the full year. RH shares vaulted nearly 22%, following huge moves after the prior four earnings reports.

RH stock closed up 4.8% to 118.73, hitting a new high and already extended from a recent breakout.

Dave & Buster’s Stock

Dave & Buster’s topped earnings and sales views. Some analysts have high hopes for the sports bar-and-arcade operator’s upcoming virtual-reality game, “Jurassic World VR Expedition,” which will roll out starting Friday.

Dave & Buster’s stock rose 13% late. Shares rose 0.4% on Monday, their 10th straight gain and moving back above the 200-day line for the first time since last August.

Urban Outfitters Stock

The young adult apparel retailer sees same-store sales in the midteens in fiscal Q2. Urban Outfitters stock leapt 4.4% late. Shares closed up 1.3% at 47.02, hitting a new high.

KMG Chemicals Stock

The specialty chemicals maker earned $1.10 a share, up 107.5% vs. a year earlier and crushing views for 87 cents. Revenue leapt 45% to $109 million, topping estimates for $103 million.

KMG Chemicals stock rose 5.6% late, suggesting a move above a 70.70 buy point at Tuesday’s open. KMG topped that entry intraday for a second straight session, but closed up just 0.1% at 70.51.

Alphabet Stock

The Google parent rose 0.7% to 1,140.90 in Monday’s session. That marked the fifth day of a handle, the minimum length necessary to be proper. Alphabet now has a lower buy point of 1,161.20.

But investors shouldn’t rush to buy Alphabet stock. Alphabet’s relative strength line, which tracks a stock’s performance vs. the S&P 500 index, has been treading water going back to May 2017, or even the start of 2016. That means that Google stock is moving with the market and not really leading.

One positive: The handle came in very light volume, following three big price gains on above-average trade. That’s bullish action.

Alphabet stock was not moving late Monday.

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