Dow Jones Futures: Why These 3 Stocks Are Notable Movers Late
Dow Jones futures were little changed late Thursday, along with S&P 500 futures and Nasdaq futures, after a wild Thursday stock market session. Lululemon Athletica (LULU), Ulta Beauty (ULTA) and Apple (AAPL) supplier Broadcom (AVGO) were notable movers on earnings. Lululemon stock and Ulta Beauty stock are both on the IBD 50 list and Leaderboard. Broadcom stock is a rare Apple chipmaker to offer bullish results and guidance.
Stock Market Roller Coaster
In Thursday’s stock market trading, the Dow Jones fell 3% only to close down 0.3%. The S&P 500 index rallied to finish off 0.2%, while the Nasdaq composite actually closed up 0.4%. The software sector, notably cybersecurity stocks such as Okta (OKTA), were big winners. The Dow Jones and S&P 500 index did fall intraday below their November lows — but not their October lows. All three major averages just made a lower high vs. their early November peak. That lower-high, lower-low index chart action is one of the current stock market’s key differences with the choppy spring-summer choppy recovery.
The stock market uptrend remains under pressure, but it’s still an uptrend. But the major market averages are all below their 200-day moving averages, and few top stocks are breaking out of sound bases.
Dow Jones Futures Today
Dow Jones futures were flat vs. fair value. S&P 500 futures rose a fraction. Nasdaq 100 futures were up 0.1%. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular session.
Looking to Friday, energy traders will eye the OPEC meeting with Russia and other nonmembers after Thursday’s OPEC-only affair raised doubts about whether a crude oil production-cut deal will be reached.
Meanwhile, the November jobs report is on tap, with solid hiring and accelerating wage gains expected.
Lululemon earnings per share rose 34%. Revenue grew 21%, and same-store sales surged 17%. That did mark an end to several quarters of accelerating Lululemon earnings and sales growth. The yogawear maker and retailer gave a decent holiday-quarter outlook, but not a blowout figure.
Lululemon stock initially sold off sharply in late trade, but rallied to trade little changed. Shares fell 1.3% to 131.44 on Thursday, but that was well off intraday lows. Lululemon stock has been consolidating since the start of October but has spent most of that time below the 50-day line.
Ulta Beauty Earnings
Ulta Beauty earnings topped views slightly, while sales were in line. The beauty-products retailer gave weak guidance for the key holiday quarter. Ulta Beauty stock tumbled 5.1% to 278 late. During Thursday’s session, Ulta Beauty stock rose 0.6% to 292.92, rebounding from below a 290.40 buy point and its 50-day line. Both of those key technical levels are at risk now.
Broadcom earnings climbed 27% and sales 17% for the fiscal fourth quarter, both beating. The communications chipmaker also gave bullish 2019 guidance. Broadcom stock rose 4.5% in late trading. Shares fell 2.1% to 227.24 on Thursday, closing near session highs after tumbling as low as 217.61. Broadcom stock is off its 22-month low of 197.46 set in July, but has been trending lower for two years.
Broadcom earnings and guidance are a rare bright spot for Apple chipmakers, several of which have warned in recent weeks along with Apple itself. But Broadcom’s bullishness is in part related to growth from moves into network storage and enterprise. Broadcom also signaled that older Apple iPhones are in greater demand.
Apple stock edged higher late after falling 1.1% during the regular session.
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