Stock News

The Dow Jones Industrial Average .DJI fell 84.83 points, or 0.34 percent, to 25,090.48, the S&P 500 .SPX lost 3.07 points, or 0.11 percent, to 2,779.42 and the Nasdaq Composite .IXIC dropped 14.66 points, or 0.19 percent, to 7,746.38. 

For the week, the Dow was down 0.9 percent while the S&P 500 rose 0.01 percent and the Nasdaq gained 1.3 percent, its fourth consecutive weekly advance.

Of the 11 major sectors of the S&P 500 six ended the day in negative territory.

The energy sector .SPNY was the biggest percentage loser, down 2.1 percent as oil prices LCOc1 tumbled more than 3 percent ahead of next week’s OPEC meeting.

Declining issues outnumbered advancing ones on the NYSE by a 1.21-to-1 ratio; on Nasdaq, a 1.02-to-1 ratio favored advancers.

The S&P 500 posted 23 new 52-week highs and four new lows; the Nasdaq Composite recorded 152 new highs and 40 new lows.

Volume on U.S. exchanges was 9.9 billion shares, compared to the 6.9 billion average for the full session over the last 20 trading days.

Dow Jones Futures Rebound; Salesforce.com Rises On Earnings

Global Stock Markets

Dow Jones futures rebounded early Wednesday along with the S&P 500 and Nasdaq 100 after major stock indexes marked a distribution day Tuesday.

Dow components JPMorgan Chase (JPM) and Goldman Sachs (GS) rebounded after sharp declines Tuesday. Exxon Mobil (XOM) was also indicated higher as oil prices inched up. U.S. crude oil futures for July delivery added 0.5% to around $67.10 a barrel.
Dow Jones Futures Rise

Dow Jones futures, S&P 500 futures and Nasdaq 100 futures were indicated higher by 0.6% to 0.7% in premarket trading.

The bond market saw big inflows Tuesday as the 10-year Treasury yield hit a low of around 2.76%, down 18 basis points. Early Wednesday, the 10-year yield was trading around 2.87%.

Nasdaq 100 component and Leaderboard name Amazon.com (AMZN) rose in line with index futures ahead of its annual shareholder meeting. It's been hugging the 1,600 level after a breakout from a cup-with-handle base with a 1,568.62 entry.

Buyers were in Micron Technology (MU) again after shares jumped 2% Tuesday. Shares were trading around 63.60 early Wednesday as it tries to break out with conviction from a cup-shaped base with a 63.52 entry. The caveat is that it's a later-stage base after a big price run already.

Elsewhere, PagSeguro Digital (PAGS) was indicated higher after reporting earnings late Tuesday. Shares crashed 10% Tuesday ahead of the results. PagSeguro was weak along with other Brazilian stocks due to an ongoing truckers strike.

Meanwhile, shares of cloud software pioneer Salesforce.com (CRM) were up nearly 5% in premarket trading. Earnings and sales topped expectations late Tuesday. Shares were trading around 133, still in buy range from a 128.97 entry. Salesforce was featured as a call-option trade in the latest Earnings Preview column.

Watchmaker Movado (MOV) rose sharply early Wednesday on strong earnings. Michael Kors (KORS) and DSW (DSW) (IBD) also reported earnings, but shares fell sharply in premarket trading.

Political "bomb" blew up global financial market

Global Stock Markets

The political crisis in Italy hits the world and financial markets may greet the “Black Tuesday”. In particular, the stock market is madly sold: the European stock market plunged, the Italian stock market fell more than 3%, and Dow is down to over 200 points

Italian President Sergio Mattarella sent the country on Monday to re-election. He appointed former IMF official Carlo Cottarelli as interim prime minister, and assigned him the task of preparing for early elections and passing the next budget.

The financial market is concerned that the earliest possible election in August was seen as a quasi-public vote on Italy’s role in the EU and the euro zone, which may further increase the strength of the suspected European party. Europe's political "bomb" is bound to set off the world!

The European stock market fell across the board. Italian stock market crashed and fell more than 3%. It is expected to set a maximum one-day decline after the Brexit vote. ItalybankThe stock index expanded to 5.2%, which is expected to hit the largest one-day drop in August 2016.

Foreign exchange market: Italy's political crisis has exacerbated the euro's decline - the euro has plunged more than 100 points, the lowest recorded at 1.1506 since July last year; the pound continued to decline, approaching the 1.32 mark; the US dollar index rose above 95, setting a six-and-a-half high of 95.05

From a technical point of view, the current EUR/USD is continuing to fall and has fallen below the low of November 7 last year. The next support level looks at the June high of 1.1427 (a double top is formed here).

Foreign exchange information site FOREXLIVE said that the driving factor behind the sharp decline in the euro/dollar has been not only the Italian election and political uncertainty, but more that the market is digesting the possibility of Italy exiting the euro zone.

According to the research firm Sentix, a measure of Italy’s potential to withdraw from the currency union within the next 12 months has jumped from 3.6% in April to 11.3% in May.

This also pushed the disintegration index across the euro zone to 13%, the highest level in more than a year.

"The difficulty of forming a new government in Italy and the prospect of the coalition and the five-star movement forming an anti-euro coalition have aroused investors' vigilance," said Manfred Huebner, managing director of Sentix.

The European political crisis is heating up, boosting demand for safe havens – USD/JPY has fallen sharply, falling to a low of more than a month at 108.41, while safe-haven gold has risen above 1300 in one fell swoop, with a maximum of $1306.24/oz!

Italy's bond market has been sold out franticly – Italian 10-year bond yields have soared by 76 basis points to 3.44%; Italian 10-year Treasury yields have been higher than comparable US Treasury yields for the first time in more than a year...

U.S. 10-year yield fell 12 basis points to 2.80%, hitting a one-and-a-half month low, due to strong demand for hedging; German 10-year Treasury yields fell 13 basis points to 0.21%, the lowest since April 2017!

Stock futures flat as auto tariff threat dulls Fed optimism

Global Stock Markets

Worries over U.S. trade protectionism, this time around car imports, weighed on Wall Street’s main indexes on Thursday, overshadowing optimism that the Federal Reserve may be more tolerant of rising inflation than previously expected.

The Trump administration launched a national security probe into car and truck imports that could lead to new tariffs, with Beijing calling the move an “abuse” of national security clauses and saying it would defend its interests.

The decision added to jitters over trade negotiations, reignited after Trump called for “a different structure” in any trade deal with China.

While shares of international automakers skidded on the tariff possibility, shares of U.S. automakers inched higher. Ford (F.N), General Motors (GM.N) and Tesla (TSLA.O) rose between 0.2 to 0.6 percent premarket.

At 7:34 a.m. ET, Dow e-minis 1YMc1 were down 27 points, or 0.11 percent. S&P 500 e-minis ESc1 were down 2 points, or 0.07 percent and Nasdaq 100 e-minis NQc1 were down 0.75 points, or 0.01 percent.

Wall Street posted small gains on Wednesday after minutes from the Fed’s latest meeting suggested higher inflation may not result in faster interest rate hikes.

Shares of Victoria’s Secret-owner L Brands (LB.N) fell 5.9 percent, while those of data storage equipment maker NetApp (NTAP.O) dropped 3.9 percent following the companies’ weak forecasts.

Williams-Sonoma (WSM.N) jumped 11.8 percent after the Pottery Barn owner posted strong quarterly results and gave a healthy forecast.

Initial jobless claims is expected to have fallen to 220,000 for last week, from 222,000 the week before. Data is due at 8:30 a.m. ET.

US Stocks - Future dip as Trump's comments spark trade talk uncertainty

Global Stock Markets

U.S. stock index futures were lower on Wednesday on fresh uncertainty over U.S.-China trade talks and ahead of a Federal Reserve report that would be watched for cues on pace of future interest rate hikes.

 

Futures down: Dow 0.73 pct, S&P 0.61 pct, Nasdaq 0.93 pct

Earlier optimism of trade talks progressing reversed on Tuesday after U.S. President Donald Trump said he was not pleased with recent trade talks between the United States and China and also raised doubts about the upcoming North Korea summit.

The comments tempered expectations that the United States and China would be able to avert a damaging global trade war.

The Federal Reserve's May meeting minutes, scheduled for release at 2:00 p.m. ET, will be scrutinized for indications of how many rate hikes are likely this year.

The U.S. central bank lifted borrowing costs in March and policymakers are split between those who expect another two rate hikes this year and those who forecast three, in the backdrop of low unemployment, moderate growth and rising inflation.

At 7:28 a.m. ET, Dow e-minis were down 182 points, or 0.73 percent. S&P 500 e-minis were down 16.5 points, or 0.61 percent and Nasdaq 100 e-minis were down 64.5 points, or 0.93 percent.

U.S. 10-year Treasury yields fell to eight-day lows as investors shunned risk. Twenty-eight of the 30

Dow Jones Industrial Average components were trading premarket and all indicated a lower open.
Target sank 5.6 percent after the retailer's quarterly profit rose less than expected as increasing investments dented margins.

Tiffany jumped 11.7 percent after the jeweler's quarterly results blew past estimates and the company also raised its full-year profit forecast and announced a $1 billion share buyback program.

On the economic front, new home sales numbers for April are expected to fall to 679,000 units, from 694,000 units the month before.

Stock index futures rise as U.S.-China trade talks progresses

Global Stock Markets

U.S. stock index futures rose on Tuesday on signs of further progress in trade talks between the United States and China as the world’s two largest economies pull back from the brink of a full-blown trade war. 

Washington neared a deal to lift its ban on U.S. firms supplying Chinese telecoms gear maker ZTE Corp (000063.SZ), sources said on Tuesday, and Beijing said it will steeply cut import tariffs for automobiles and car parts.

Shares of Ford (F.N), General Motors (GM.N), Tesla (TSLA.O), as well as the U.S.-listed shares of Ferrari (RACE.N) and Fiat (FCAU.N), were up between 0.8 percent and 2.4 percent in premarket trading.

The stock market has generally been volatile this year on a combination of factors including the fear of higher inflation spurring faster U.S. interest rate hikes and worries over a global trade war.

While investors may be relieved over the easing trade tensions, many U.S. government and industry officials view President Donald Trump is backing off from his tough stance against what they see as China’s unfair trade and market access practices.

At 7:26 a.m. ET, Dow e-minis 1YMc1 were up 55 points, or 0.22 percent. S&P 500 e-minis ESc1 were up 5 points, or 0.18 percent and Nasdaq 100 e-minis NQc1 were up 26.5 points, or 0.38 percent.

Micron (MU.O), which raised its quarterly forecast and led the chipmakers higher on Monday, jumped 5.3 percent after announcing a $10 billion share buyback.

Facebook (FB.O) edged up 0.3 percent ahead of Chief Executive Mark Zuckerberg’s defense of the company’s data practices to European lawmakers in Brussels. The testimony starts at 12:15 p.m. ET and comes three days before tough new European Union rules on data protection take effect.

The possibility of a ZTE reprieve boosted shares of optical component makers. Acacia Communications (ACIA.O), which got 30 percent of its 2017 revenue from ZTE, rose 4.6 percent, while Oclaro (OCLR.O) gained 1.4 percent.

Stock futures creeps higher with trade talks in focus

Global Stock Markets

U.S. stock index futures rose slightly in choppy trading on Friday as oil prices climbed, while investors kept a close watch on Sino-U.S. trade talks.

China denied it had offered to cut its trade surplus with the United States by up to $200 billion, hours after it dropped an anti-dumping probe into U.S. sorghum imports, but added that talks were constructive.

The world’s two biggest economies are seeking to bridge a divide on trade issues during the two-day talks in Washington that began on Thursday.

Oil prices continued their surge, with Brent crude LCOc1 on track for the sixth straight week of gains, boosted by strong demand, looming sanctions on Iran, plummeting Venezuelan production and Nigerian disruptions. [O/R]

At 7:19 a.m. ET, Dow e-minis 1YMc1 were up 58 points, or 0.23 percent. S&P 500 e-minis ESc1 were up 3 points, or 0.11 percent and Nasdaq 100 e-minis NQc1 were up 9.75 points, or 0.14 percent.

Investors have been fretting over rising interest rates, with the 10-year Treasury yield, the benchmark for global borrowing costs, holding above the key 3 percent level for the fourth day.

However, Bank of America Merrill Lynch said on Friday investors pumped $11.9 billion into global equities in the past week and also put money into bank loans, likely viewing the rise in U.S. bond yields as reflecting a robustly growing economy.

Among stocks, Applied Materials (AMAT.O) fell 4.9 percent after the chip gear maker’s disappointing forecast renewed concerns over slowing smartphone demand, while AMD (AMD.O) rose 2.6 percent after Cowen started coverage with an “outperform” rating.

Mattel shares gained 3.7 percent on a Wall Street Journal report that the company rejected Bratz dolls inventor Isaac Larian’s offer to merge his MGA Entertainment Inc with the Barbie doll maker.

US Stocks - Futures drop as Cisco disappoints; trade talks eyed

Global Stock Markets

U.S. stock futures dipped on Thursday after Cisco's disappointing forecast, while investors fretted about rising U.S. Treasury yields and looming trade talks between the United States and China.

The world's two economic powerhouses will resume trade negotiations over the next two days and officials from both sides have recently signaled that they are looking for a deal. is considering tariffs on U.S. exports worth $409 million in retaliation against U.S.-imposed steel and aluminum import tariffs, according to media reports. of Cisco Systems CSCO.O fell 3.9 percent in premarket trading after the company's disappointing forecast indicated that its transition to a software-focused business was a work in progress.

WMT.N was up 1.1 percent after the retailer's quarterly ecommerce sales growth slowed year-over-year, but was higher than the previous quarter. retailer's results come after Macy's (NYSE:M) M.N strong report helped power Wall Street on Wednesday and pushed the small-cap Russell 2000 .RUT to a record high.

At 7:23 a.m. ET, Dow e-minis 1YMc1 were down 22 points, or 0.09 percent. S&P 500 e-minis ESc1 were down 4.5 points, or 0.17 percent and Nasdaq 100 e-minis NQc1 were down 25.75 points, or 0.37 percent.

Yields on the 10-year Treasury notes US10YT=RR eked out a fresh 7-year highs, continuing a climb that was first triggered by Tuesday's retail sales data that signaled the U.S. economy is on a stronger footing in the second quarter.

US/Coca-Cola KO.N rose 1 percent after Barclays (LON:BARC) upgraded the stock to "overweight."

NetEase NTES.O dropped 9 percent after the Chinese internet company's first-quarter profit missed Wall Street estimates. the economic front, data at 8:30 a.m. ET is expect to show initial jobless claims rose 215,000 last week from 211,000 the week before.

Stock futures flat amidst rising U.S. yields and North Korea worries

Global Stock Markets

 U.S. stock index futures were little changed on Wednesday as investors assessed the impact of a surge in bond yields, while growing doubts about the U.S.-North Korea summit also weighed. 

North Korea threw next month’s summit between Kim Jong Un and President Donald Trump into doubt, threatening weeks of diplomatic progress by saying it may reconsider if Washington insists it unilaterally gives up its nuclear weapons.

A cancellation of the June 12 summit in Singapore adds to the jitters in the market, which is already dealing with China-U.S. trade tensions and inflation concerns.

The Dow Jones Industrial Average .DJI and the Nasdaq .IXIC recorded their biggest one-day percentage drop in three weeks on Tuesday after strong retail sales data stoked inflation concerns, sending the U.S. 10-year Treasury yield above the 3 percent level, its highest since July 2011. It was last at 3.0742 percent on Wednesday.

The latest report comes after markets took comfort from a recent string of data that pointed to softening inflation.

Reports on housing starts, industrial production and weekly jobless claims are all due later in the day.

At 7:19 a.m. ET, Dow e-minis 1YMc1 were up 17 points, or 0.07 percent. S&P 500 e-minis ESc1 were up 2.5 points, or 0.09 percent and Nasdaq 100 e-minis NQc1 were up 9.25 points, or 0.13 percent.

Among stocks, Micron (MU.O) rose 1.6 percent in premarket trading after RBC Capital Markets began coverage with “outperform” while AMD (AMD.O) gained 1.8 percent after a rating upgrade at Susquehanna.

Macy’s (M.N) rose 0.1 percent ahead of the retailer’s results.

Stock Declines Ease, Bonds Gain as Dollar Edges Up: Markets Wrap

European Stock Markets

U.S. equity futures steadied alongside European stocks as global markets regained some composure following a hectic Tuesday session. The dollar rose a fourth day as concerns surrounding Italy weighed on the euro, and Treasury yields edged lower after their spike a day earlier.

Contracts for the S&P 500, Dow Jones and Nasdaq were all directionless as the Stoxx Europe 600 Index drifted. Equities in Asia nudged lower, with shares in Japan and Hong Kong declining while Australia’s main gauge eked out a gain and Korean stocks were little changed.

Italian bonds slumped and the country’s stocks underperformed as populist parties struggling to form a government discussed a potential government debt write-down. The common currency fell a third day, but core European bonds followed Treasuries higher.

Wednesday’s relative stability will be welcomed by many investors, given that fresh uncertainty about the U.S.-North Korea summit is surfacing just as violence flares in Gaza, the IMF warns on the threat protectionism poses to global growth, and Italy stands on the brink of a euro-skeptic government.

Against that backdrop U.S. Treasury yields, which act as a benchmark for global borrowing costs, have been rising as traders boost bets the Federal Reserve will accelerate monetary tightening. That’s helped drive a dollar rally and sucked cash from some other asset classes.

Elsewhere, emerging-market equities steadied following Tuesday’s plunge, but developing currencies turned lower and the lira weakened again. The Thai baht, South Korean won and Indonesian rupiah led Asian declines. The Malaysian ringgit fell for a sixth day after overseas investors pulled out a net $376 million from stocks over Monday and Tuesday in the wake of last week’s election.
Stocks

The Stoxx Europe 600 Index gained less than 0.05 percent as of 6:12 a.m. New York time, the highest in almost 15 weeks.

Futures on the S&P 500 Index dipped less than 0.05 percent to the lowest in a week.

The U.K.’s FTSE 100 Index advanced less than 0.05 percent to the highest in 16 weeks.
Germany’s DAX Index advanced 0.2 percent.
The MSCI Emerging Market Index was unchanged at the lowest in a week.
The MSCI Asia Pacific Index sank 0.1 percent.

Currencies
The Bloomberg Dollar Spot Index climbed 0.2 percent to the highest in 20 weeks.
The euro fell 0.3 percent to $1.1797, the weakest in more than 21 weeks.
The British pound declined 0.2 percent to $1.3471, the weakest in almost 20 weeks.
The Japanese yen increased 0.2 percent to 110.18 per dollar.

Bonds
The yield on 10-year Treasuries decreased one basis point to 3.06 percent.
Germany’s 10-year yield declined three basis points to 0.62 percent, the biggest drop in almost two weeks.
Britain’s 10-year yield dipped two basis points to 1.493 percent.

Dow’s 8-session win streak in jeopardy as U.S. stock futures dip

Global Stock Markets

U.S. stock futures edged lower Tuesday, indicating the Dow could struggle to stretch its eight-session winning streak into another day.

Dow component Home Depot Inc. was helping to lead the way lower, as the retailer’s shares fell in premarket action following earnings.

The yield on the 10-year Treasury note was poking back above the 3% handle, and traders were bracing for readings on retail sales and the housing market, as well as Federal Reserve speeches.
What are markets doing?

Dow Jones Industrial Average futures YMM8, -0.34% slipped by 41 points, or 0.2%, to 24,845, while S&P 500 futures ESM8, -0.27% eased 2.90 points, or 0.1%, to 2,728. Nasdaq-100 futures NQM8, -0.43% lost 11 points, or 0.2%, to 6,963.

On Monday, the Dow DJIA, +0.27% closed up by 68.24 points, or 0.3%, at 24,899.41, marking its eighth-straight advance and the longest positive streak since a nine-session climb in September. The S&P SPX, +0.09% and Nasdaq Composite COMP, +0.11% each rose 0.1%.
What are strategists saying?

“The surge in the U.S. 10-year yields TMUBMUSD10Y, +1.01% above the 3% mark again and comments from U.S. Commerce Secretary Ross that the gap between the U.S. and China ‘remains wide’ are dampening investors’ sentiment,” said Konstantinos Anthis, head of research at ADS Securities, referring to remarks on Monday by Wilbur Ross, which have come as the world’s two biggest economies try to reach a deal over trade disputes.  

Higher interest rates can peel some money away from stocks.

The stock market seems to have turned a corner this month, overcoming concerns about inflation, rising rates, trade fights and geopolitical tensions.

The backdrop for equities isn’t as scary as investors presumed only a few months ago, according to some strategists.

The Dow remains 6.5% below its January record close, but the blue-chip gauge has flipped positive for the year, showing a gain of 0.7% as of Monday’s finish.
What stocks are in focus?

Shares in Home Depot Inc. HD, -2.20% fell 2% in premarket trading after the home-improvement retailer posted quarterly earnings that topped forecasts, but revenue that missed Wall Street’s expectations. The company also said it had experienced a “‘slow start to the spring selling season.”

Shares in Agilent Technologies Inc. A, -0.35% dropped 6% premarket after the maker of medical instruments and other equipment posted quarterly earnings that matched forecasts late Monday.

April figures for retail sales are due to hit at 8:30 a.m. Eastern Time, with economists polled by MarketWatch forecasting a 0.3% rise, and a May report on the Empire State Manufacturing Survey is expected at the same time.

Things to watch on the ASX on Tuesday

Australian Stock Markets

Will the market be able to build on this on Monday's solid start to the week? Here are five things that could shape the day’s trade:

On Monday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) had a solid start to the week and finished the day 0.3% higher at 6,135.3 points.

ASX futures are pointing higher again.

According to the latest SPI futures, the Australian share market is expected to open the day 2 points higher following a mixed night of trade in U.S. markets. The Dow Jones ended the day 0.3% higher, the S&P 500 was up 0.1%, and the Nasdaq ended 0.1% higher.

Oil prices rebound.
Energy producers BHP Billiton Limited (ASX: BHP) and Woodside Petroleum Limited (ASX: WPL) will be on watch after oil prices rebounded strongly after a spot of weakness. According to Bloomberg, WTI crude oil climbed 0.6% to US$71.11 a barrel and Brent crude oil rose 1.7% to US$78.43 a barrel. Overnight OPEC lifted its forecast for global oil demand growth this year.

Reserve Bank minutes.
The minutes from the latest Reserve Bank of Australia meeting will be released later this morning. Although there is unlikely to be any bombshells in the minutes, the market will be looking out for any change in rhetoric around Australian wage growth. In addition to this, deputy governor Guy Debelle is due to give a speech this morning.

NAB shares go ex-dividend.
The shares of National Australia Bank Ltd (ASX: NAB) are likely to sink into the red this morning after going ex-dividend for the bank’s 99 cents per share fully franked interim dividend. Eligible shareholders will receive this dividend in their nominated account on July 5. Eligible shareholders of Premier Investments Limited (ASX: PMV) are due to be paid the retail conglomerate’s interim dividend today.

Telstra shares will be on watch.
Telco giant Telstra Corporation Ltd (ASX: TLS) will be on watch on Tuesday after Monday’s 5% slide. According to a note out of Goldman Sachs, the broker has reduced its earnings forecasts in light of yesterday’s update but still sees a lot of value in the company’s shares. It has a buy rating and reduced price target of $3.90 on its shares.

Stock Futures rise up; Verizon & Nvidia Flu swing up

Global Stock Markets

Stock futures shed early losses and edged up into narrow gains Friday, as the Dow industrials looked stretch its rally to an eighth day, while benchmarks in Europe and Asia were set to extend their nearly two-month advances.

Futures for the Dow Jone industrial average held 0.2% above fair value. Verizon (VZ) was the early strong suit among blue chips, up 1.6% after an upgrade from JP Morgan. Nasdaq 100 and S&P 500 futures traded with fractional gains. Security software developer Symantec (SYMC) fell hard to the bottom of both indexes.

Earnings from late Thursday provided a hub for premarket trading, with Nvidia (NVDA), The Trade Desk (TTD) and Symantec (SYMC) all posting significant moves.

On the Dow, Verizon swung to an early early lead after JPMorgan upgraded the stock to overweight, from neutral. Verizon shares spiked, then sold off hard at the end of April, news of a $26 billion merger between SpringS and T-Mobil U.S. (TMUS). Shares ended Thursday 13% below their April high.

Nvidia will be a name to watch Friday, dipping nearly 3% after its late-Thursday earnings report and threatening to dent the strong performance among chipmakers for the week.  The graphics chip pioneer crushed fiscal first-quarter earnings and revenue expectations,and gave scond-quarter revenue guidance above consensus views. The company offered no EPS guidance for Q2. At the close of regular trading, the stock was in a buy range above a flat-base buy point at 254.60. The chart also can be interpreted as a double-bottom base with a 239.35 entry. Premarket moves can often change abruptly at the start of regular trade.

Most of the chip stocks listed on the Philadelphia Semiconductor Index appeared unaffected by the Nvidia flu. About a third of the index traded lower in premarket action.  Advanced Micro Devices (AMD) slipped furthest, showing a 1.2% decline. The index gained 4.9% for the week through Thursday, and was leaning toward its first two-week advance since March.

Symantec collapsed 25% as analysts downgraded the stock following its fiscal Q4 report late Thursday. Weak guidance damaged an otherwise stronger-than-expected quarterly performance. Symantec shares had climbed 17% in a seven-week advance since March, attempting to build the right side of a seven-month consolidation.

The Trade Desk spiked 23% in premarket trade. The online advertising services platform reported late Thursday its first quarter earnings growth accelerated to 89%, growth of revenue accelerated to a 61% increase. Both numbers easily topped analyst targets. Management's raised Q2 and full-year revenue and earnings guidance were well above consensus hurdles.

The IPO's premarket action suggested it could open Friday with a breakaway gap, past a 61.03 buy point in a gnarled-looking cup base. It's best to read up on buying breakaway gaps before trying to jump in. And keep in mind that not all premarket moves carry over into regular trade.

IBD 50 stock Zebra (ZBRA) bucked up 2.5% in early action. The maker of thermal printers and components closed Thursday in a buy range, above a 148.81 buy point in a third-stage flat base.
Crude Oil Holds Above $71, May Consumer Sentiment Coming Up

Energy stocks were largely quiet as crude oil prices blipped modestly higher early Friday. U.S. benchmark West Texas Intermediate traded up 0.1%, holding well above $71 per barrel. Crude gained 0.3% Thursday, with WTI settling at $71.36 a barrel, up 2.4% so far for the week. Prices could feel some effect on Friday when Baker Hughes (BHGE) releases its weekly rig-count survey at 1 p.m. ET.

US stock futures slide down ahead of Trump's decision on Iran

Global Stock Markets

U.S. stock index futures slipped on Tuesday as investors braced for President Donald Trump’s decision on whether to withdraw from the Iran nuclear deal.

 

A U.S. withdrawal would tighten economic sanctions on Iran, curtailing the country’s output that could bolster this year’s 13 percent oil rally.

Crude prices were down more than 1 percent - easing from 2014 highs, which had boosted Wall Street in the past two sessions - ahead of Trump’s decision at 1800 GMT (2:00 p.m. ET). [O/R]
“(Trump’s decision) has been so well covered, it’s probably all in the price by now.

And most recent commentary seems to be that after all the bluster, he may only partially withdraw from the deal,” said Frances Hudson, global thematic strategist at Aberdeen Standard Investments.

At 7:19 a.m. ET, Dow e-minis 1YMc1 were down 96 points, or 0.4 percent. S&P 500 e-minis ESc1 were down 11.25 points, or 0.42 percent and Nasdaq 100 e-minis NQc1 were down 33.5 points, or 0.49 percent.

Shares of Comcast (CMCSA.O) fell 1.5 percent premarket after Reuters reported the cable operator is preparing to make an all-cash offer for media assets that Twenty-First Century Fox (FOXA.O) has agreed to sell to Disney (DIS.N) for $52 billion.

Fox’s shares rose 3 percent. Disney, which is due to report its results after markets close, was down 0.4 percent.

Snap Inc (SNAP.N) rose 1.5 percent after hiring Tim Stone, who had led Amazon’s (AMZN.O) $13.7-billion integration with Whole Foods, as its chief financial officer.

Citigroup (C.N) rose 1.4 percent after activist investor ValueAct invested $1.2 billion in the bank, citing its low risk and reliable revenue.

ASX futures are pointing higher

Australian Stock Markets

ASX futures are pointing higher.
 

According to the latest SPI futures, the Australian share market is expected to open the day 20 points or 0.3% higher on Tuesday.

The local market is following the lead of U.S. markets which had a positive start to the week as well. The Dow Jones started the week with a 0.4% gain, the S&P 500 rose 0.35%, and the Nasdaq climbed almost 0.8%.

Today is budget day.
Tax cuts and infrastructure spending will dominate tonight’s Federal Budget.

And while the announcement isn’t until 7:30pm Eastern Time, it seems likely that a few details will leak throughout the day. Healthcare shares and aged care companies such as Japara Healthcare Ltd (ASX: JHC) could be worth keeping an eye on today.

Oil prices continue to climb higher.
The shares of Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could be set for another positive day of trade after oil prices rose again overnight.

According to Bloomberg, WTI crude oil is up 0.4% to US$70.00 a barrel and Brent crude oil is up 1% to US$75.64 a barrel. Oil prices have been rising on the back of supply concerns caused by possible sanctions on Iran.

Retail sales data is released this morning.
Retail shares including Domino’s Pizza Enterprises Ltd. (ASX: DMP), Myer Holdings Ltd (ASX: MYR), and Premier Investments Limited (ASX: PMV) will be on watch this morning when the Australian Bureau of Statistics releases its retail sales data for the month of April at 11:30am Eastern Time.

 According to Trading Economics, the consensus estimate is for retail sales rising 0.3% month-on-month.

 CYBG could be on the move.
The CYBG PLC (ASX: CYB) share price will be one to watch this morning after the UK bank confirmed that it has it has made a preliminary approach for a potential all share combination of it and Virgin Money.

The proposal would see CYBG acquire all of Virgin Money on the basis of an exchange ratio of 1.1297 new CYBG shares for each Virgin Money share.

Wall Street opens higher as oil prices rise

U.S. stocks opened higher on Monday as energy shares gained on the back of surging oil prices and Starbucks got a boost from its partnership with Nestle.

 The Dow Jones Industrial Average rose 55.15 points, or 0.23 percent, at the open to 24,317.66. The S&P 500 opened higher by 5.94 points, or 0.22 percent, at 2,669.36. The Nasdaq Composite gained 32.20 points, or 0.45 percent, to 7,241.82 at the opening bell.

The Dow Jones Industrial Average,

The Dow Jones Industrial Average .DJI rose 332.36 points, or 1.39 percent, to 24,262.51, the S&P 500 .SPX gained 33.69 points, or 1.28 percent, to 2,663.42 and the Nasdaq Composite .IXIC added 121.47 points, or 1.71 percent, to 7,209.62.

For the week, the Dow lost 0.2 percent and the S&P fell 0.24 percent. It was the second straight week of losses for both indexes.

By contrast, the Nasdaq gained 1.26 percent on the strength of tech stocks’ rally on Friday. The S&P 500 technology sector .SPLRCT rose 2.0 percent.

All the 11 major S&P sectors were higher, and 29 of the 30 Dow members were in the black, with Chevron Corp (CVX.N) the lone exception.

Pandora Media Inc (P.N) shares jumped 19.8 percent after the music-streaming service provider reported a smaller-than-expected quarterly loss.

Shares of CBS Corp (CBS.N) rose 9.1 percent after the media company topped revenue and profit estimates for the first quarter.

Fluor Corp (FLR.N) shares sank 22.4 percent, the most on the S&P, after the engineering and construction company posted a surprise quarterly loss due to issues with a gas-fired power project.

The S&P 500 posted 16 new 52-week highs and 6 new lows; the Nasdaq Composite recorded 94 new highs and 47 new lows.

Volume on U.S. exchanges was 6.37 billion shares, compared to the 6.57 billion average for the full session over the last 20 trading days.

Wall Street set to recover after bumpy ride

Global Stock Markets

U.S. stock index futures signaled a rebound for Wall Street on Wednesday, a day after the main indexes fell more than half a percent on fears of political and trade uncertainties. 

By 6:53 a.m. ET, Dow e-minis 1YMc1 were up 84 points. S&P 500 e-minis ESc1 rose 7.5 points and Nasdaq 100 e-minis NQc1 gained 30 points.

Singapore-based Broadcom Ltd (AVGO.O) withdrew its $117 billion bid to acquire Qualcomm Inc (QCOM.O), two days after U.S. President Donald Trump blocked the deal citing national security concerns.

Qualcomm shares were up 0.9 percent and Broadcom rose 0.22 percent in premarket trading.

Ford shares (F.N) were up nearly 4 percent after Morgan Stanley double-upgraded the stock to “overweight” and raised its earnings forecast for the first time in two years.

The S&P 500 and the Dow closed 0.6 percent lower on Tuesday after Trump fired Secretary of State Rex Tillerson and appointed CIA Director Mike Pompeo as replacement.

Market sentiment took a hit early last week after the President announced plan to levy tariffs on steel and aluminum import.

The declines worsened on Tuesday on reports that Trump was seeking to impose tariffs on up to $60 billion of Chinese imports and will target the technology, telecoms and apparel sectors.

Investors are waiting for more data to assess the health of the world’s largest economy. At 8:30 a.m. ET, the Commerce Department is likely to say February retail sales rose 0.3 percent after unexpectedly falling 0.3 percent in January.

On Tuesday, data pointed to a steady annual U.S. core inflation at 1.8 percent, cementing investors expectations that the Fed would not raise rates more than three times in 2018.

Data on producer prices is also due on Wednesday and is likely to show final demand rose 0.1 percent in February, compared with a 0.4 percent increase in January.

U.S. stock futures - 5 Things You Must Know

Global Stock Markets

U.S. stock futures pointed to sharp losses for Wall Street on Tuesday, Feb. 20, as investors braced for nearly $260 billion in new debt auctions that could push bond yields higher and reignite a new round of volatility in global markets.

Contracts tied to the Dow Jones Industrial Average declined 189 points, while those tied to the S&P 500 fell 18.25 points.

The big story this week could be the market's reaction to $258 billion in new debt sales from the U.S. Treasury, which kicks off Tuesday with an auction of $151 billion in short-term Treasury bills, and their impact on an already bearish bond market. Benchmark 10-year note yields rose 3 basis points early Tuesday to 2.908%.

Home Depot Inc.  posted fourth-quarter adjusted earnings of $1.69 cents a share, 8 cents above estimates. Revenue in the quarter was $23.88 billion, up from $22.21 billion a year earlier and ahead of forecasts of $23.66 billion. The home-improvement retailer said it expects sales growth of 6.5% in fiscal 2018. The stock rose slightly in premarket trading.

Walmart Inc. earned $1.33 a share on an adjusted basis in the fourth quarter, below analysts forecasts of $1.37. Revenue was $136.27 billion, higher than estimates. U.S. same-store sales in the quarter rose 2.6%.The world's largest retailer said it expects earnings per share in 2019 of $4.75 to $5. Shares of Walmart tumbled 3.9% in premarket trading.

Earnings are also expected Tuesday from Transocean Ltd. (RIG) , NiSource Inc. (NI) , Noble Energy Inc. (NBL) , Medtronic PLC (MDT) , LendingClub Corp. (LC) , Devon Energy Corp. (DVN) , Duke Energy Corp. (DUK) and Domino's Pizza Inc. (DPZ) .

The economic calendar in the U.S. on Tuesday is light.
The Dow and the S&P 500 finished higher on Friday, Feb. 16, but were dented by the news that a federal grand jury had indicted 13 Russian nationals and three Russian entities accused of interfering with U.S. elections.

 

The Dow gained 19 points, or 0.08%, to close at 25,219. The S&P 500 gained 0.04% on Friday but the Nasdaq declined 0.23%. For the week the Dow jumped 4.25%, the S&P 500 gained 4.30% and the Nasdaq climbed 5.31%. 

Albertsons Cos. plans to buy the rest of Rite Aid Corp. (RAD)  that isn't being sold to Walgreens Boots Alliance Inc. , The Wall Street Journal reported.

Rite Aid, the third-largest U.S. drugstore chain, and Albertsons have a combined value of around $24 billion, including debt. Rite Aid has a market value of about $2.3 billion and is in the process of selling abour 2,000 of its stores to Walgreens. The transaction would create a company with revenue of $83 billion and allow Albertsons to go public after more than a decade of ownership by private-equity giant Cerberus Capital Management LP, the Journal said. Rite Aid shares jumped 29% in premarket trading.

Shares of HSBC PLC  (HSBC)  tumbled more than 4% on Tuesday in London after Europe's biggest bank missed analysts' forecasts for its full-year earnings and said it plans to raise as much as $7 billion in new capital before it will consider any share buybacks.

The London-based bank, which is gradually shifting its focus to markets in Asia under the stewardship of new CEO John Flint, said full-year profit more than doubled to $17.2 billion, but the figure was compared with 2016 which included major restructuring costs. Analysts expected the bank to earn $19.2 billion.

The bank also booked a $1.3 billion charge related to the new U.S. tax law and $188 billion in bad-loan impairments linked to two corporate clients in Europe that are widely believed to be the scandal hit furniture retailer Steinhoff International Holdings NV and Britain's bankrupt outsourcer Carillion PLC.

Dow Theory - Market turmoil isn't signaling a coming crash

Global Stock Markets

Panic is a bad investment strategy.

Yet that is exactly how many investors reacted earlier this month when the stock market dropped precipitously. They indiscriminately dumped their stocks at whatever prices they could get.

Odds are good that they will end up regretting their behavior.

I say that not just because the stock market has recovered some over the last few sessions. It is still possible that a bear market did begin from the late-January market highs. But since most scary drops do not lead to major bear markets, it’s virtually assured that — over the long term — selling after every unnerving decline will lead to more losses than gains.

If you’re not a long-term buy-and-hold investor, therefore, you need an investment system that keeps you from panicking every time the market starts heading south. 

The Dow Theory is the oldest and perhaps the most popular of such systems. Like any good investment discipline, it provides you with preset rules that try to differentiate between less serious bouts of market volatility and the beginnings of devastating bear markets.

Currently, followers of the Dow Theory are giving the stock market the benefit of the doubt.

The Dow Theory was created in the early part of the last century by William Peter Hamilton, then editor of The Wall Street Journal. He introduced the strategy in a series of editorials in the newspaper up until his death in 1929. He advised readers to focus not on the initial pullback from market highs but on the market’s attempt to recover from that pullback. A bear market signal would be triggered if that recovery were so weak that either the Dow industrials or the Dow transports would fail to close above their previous highs, and then both Dow averages would break below their lows hit in the initial pullback.

Here’s how that applies to the current market: If in coming weeks the Dow industrials surpass their Jan. 26 closing high of 26,616.71 and the Dow transports close above their Jan. 12 record finish of 11,373.38, then the Dow Theory would consider the bull market alive and well.

By contrast, a bear market signal would be triggered if either the Dow industrials or transports couldn't beat their January highs, and both close below their early February lows—23,860.46 in the case of the industrials and 10,136.61 for the transports.

Until then, Dow Theorists wait, letting the market tells its story. And one of the key tenets of Hamilton’s approach is that the market’s major trend is presumed to remain in force until formally reversed. That’s why the Dow Theory currently is giving the bull market the benefit of the doubt.

Note carefully that the Dow Theory isn’t designed to catch the exact tops and bottoms of bull and bear markets. By requiring a decline from market highs to prove itself before a bear market is declared, for example, the strategy is guaranteed to suffer losses at the beginning of a bear market. The same goes in reverse when a bear market gives way to a new bull market.

But there never has been a market timing system that consistently catches the exact day of bull market tops and bear market bottoms, and there never will be. 

And the perfect is the enemy of the good. Jack Schannep, editor of TheDowTheory.com, one of the country’s leading Dow Theorists, put it this way: “The genius of investing is recognizing the direction of the trend — not catching the highs or the lows.”

One confirmation of the Dow Theory’s value comes from a study conducted in the 1990s by three finance professors – Stephen J. Brown of New York University, William Goetzmann of Yale University, and Alok Kumar of the University of Miami. 

They tested the Dow Theory over the nearly 70-year period from 1930 (the year following Hamilton’s death) to the end of 1997, finding that it beat a buy-and-hold by an annual average of 4.4 percentage points per year.