S&P 500 Futures: 4 Hurricane Stocks To Watch; Apple Is The X Factor
Futures for the S&P 500 index, Nasdaq 100 and Dow Jones industrial average signaled solid gains Sunday evening. With Hurricane Irma lashing Florida on the heels of Hurricane Harvey’s flooding the Texas Gulf Coast, Home Depot (HD), generator maker Generac (GNRC) and RV makers Thor Industries (THO) and Winnebago (WGO) are all near buy points. But investing eyes also are looking ahead to the Apple (AAPL) iPhone event on Tuesday.
XAutoplay: On | OffS&P 500 futures rose 0.3% vs. fair value. Dow futures advanced 0.6%.
Hurricane Irma hit Florida hard Sunday, flooding coastal areas and leaving millions of people without power. The one-two punch of Hurricane Harvey and Irma has spurred consumer demand in everything from generators to motor homes to lumber for storm prep and repair. That’s drawing investor interest. But will the storms spur a short-term burst of spending for storm-related stocks, or will there be a longer benefit as households decide to beef up their supplies and backup power?
Shares of Home Depot, a Dow component, rose 5.9% last week to 159.66, surging above their 50-day moving average and closing on a 160.96 flat-base buy point. Rival home improvement chain Lowe’s (LOW) also has been rallying in recent days, but has a longer way to go in building the right side of a potential base.
Thor And Winnebago
Thor Industries, the leading maker of towable RVs, may benefit from people seeking temporary housing in Texas and Florida.
Thor is in a cup-with-handle base with a 110.01 buy point. Thor actually topped that entry point intraday on Sept. 28 and closed in the buy zone for part of last week. But Thor closed Friday at 109.70, just below range.
Thor is a member of IBD’s Leaderboard, a premium service offering annotated charts of a select number of stocks, mostly growth plays in or near buy zones.
Winnebago is in a cup-with-handle base with a 37.30 entry. Winnebago moved into a buy zone last Wednesday and Thursday, but ended the week at 36.55.
The generator maker is in a saucer base with a 44.94 buy point. Generac rose as high as 44 on Thursday, but reversed lower that day and retreated Friday to close at 41.85. That’s still up 15.5% since Aug. 23.
Generac has a spotty earnings track record, as opposed to Home Depot, Thor and Winnebago. Generac’s Relative Strength line has generally been falling since early 2014, reflecting the stock’s status as a laggard vs. the S&P 500 index.
Apple will release unveil its latest iPhone handsets at a Tuesday event at 10 a.m. PT at its new headquarters. Apple reportedly will release an iPhone 8, iPhone 8 Plus and an iPhone X. The “X” will reportedly have a full OLED screen. One key question is when the new iPhone will actually be released and how many handsets will be available, amid widespread reports of iPhone production problems.
Apple remains in buy range from its 156.75 flat-base entry, though shares have fallen for four straight days, capped by Friday’s 1.6% drop to 158.63.
Meanwhile, a number of iPhone chip suppliers and other iPhone-related plays are trading in sound bases. A few have tried to break out in recent weeks, but haven’t been able to stay in buy zones for long. So Tuesday’s event, along with the actual release that will spur “teardowns” to see what chips are actually in the new iPhones, will be key to those companies and their stocks.
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