Dow Jones Futures: S&P 500, Nasdaq Hit Current Stock Market Highs; Intel Stock Breaks Out – Investor’s Business Daily
Dow Jones futures edged higher Thursday morning, along with S&P 500 futures and Nasdaq futures. In Wednesday’s stock market, the Nasdaq composite and S&P 500 index hit new highs in the current stock market rally, with Intel stock and Cisco Systems (CSCO)-rival Arista Networks stock clearing buy points. After the close, database software name MongoDB (MDB) and chipmaker Semtech (SMTC) reported earnings. MongoDB stock soared overnight and Semtech stock fell sharply.
Arista Networks (ANET) boasts a 98 IBD Composite Rating out of a best-possible 99. Intel (INTC) has a 96 Composite Rating. Semtech stock has a 95 CR. MongoDB, which is not yet profitable, boasts a 76 Composite Rating.
Dow Jones Futures Today
Dow Jones futures rose slightly vs. fair value. S&P 500 futures were just above break-even. Nasdaq 100 futures climbed 0.1%. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Chinese economic data for February released at 10 p.m. ET were largely in line. Retail sales climbed 8.2% vs. a year earlier, matching estimates and January’s pace, even with auto sales negative. Industrial production climbed 5.3%, below views for 5.5% and a 17-year low. Fixed asset urban investment rose 6.1% vs. a year earlier, topping estimates for 5.9%.
The data appeared to have little impact on Dow Jones futures.
Current Stock Market Rally
The Nasdaq composite rose and the S&P 500 index rose 0.7% clearing their March 4 peaks intraday to hit their best levels of the current stock market rally. That’s a day after the big-cap Nasdaq 100 and the related Invesco QQQ ETF (QQQ), recouped their pullback losses. The Dow Jones advanced 0.6%, as Boeing (BA) edged higher even as the U.S. joined the world in grounding Boeing 737 Max jets.
Intel Stock, Arista Stock Clear Buy Points
Arista Networks broke out, rising 2.6% to 292.51, above a 289.87 cup-with-handle buy point. Volume was 23% above average, but not the preferred 40% or more preferred in top stock breakout volume. Arista stock is on the IBD 50 list. The relative strength line has been trending up in recent weeks but is not quite at the consolidation’s August high.
Larger, slower-growing rival Cisco, a Dow Jones component, broke out about a month ago following earnings. Cisco stock rose 0.8% Thursday to a fresh 18-year high.
Intel stock rose 1.5% to 54.37, just clearing a 54.20 cup-with-handle buy point in average volume.
Arista stock and Intel stock formed their handles during the recent pullback, which appears to have served as a constructive pause in the current stock market rally.
MongoDB Earnings Report
The MongoDB earnings report for the fourth quarter came in strong. The database software maker lost 17 cents a share adjusted as revenue jumped 71% to $85.5 million. Both were much better than expected. MongoDB earnings and sales guidance for the first quarter also was bullish.
MongoDB stock skyrocketed 18% before Thursday open, signaling a record high. Shares fell 0.6% to 104.26, consolidating near a late February peak. MongoDB stock, a late 2017 IPO, cleared a consolidation buy point of 93.33 on Feb. 4.
MongoDB shares have had some wild swings, like many other software names leading the current stock market rally. One way to limit stock-specific whipsaw action is via top ETFs. The IGV iShares Expanded Tech-Software Sector ETF (IGV) rose 0.6% to 207.45 in Wednesday’s trade, back in buy range from a 206.76 cup-with-handle buy point. It’s currently on IBD’s SwingTrader.
Semtech Earnings Report
Semtech earnings narrowly beat analyst views for the fourth quarter. But Semtech earnings and sales guidance were well below views.
Semtech stock fell 6% late. Shares closed up 1.6% to 55.50, working toward a 58.06 cup-with-handle buy point.
Though Intel stock and Xilinx (XLNX) are doing well, not many chip stocks have entered buy range even though semiconductors have done well in the current stock market rally.
Investors can play the chip advance via ETFs. The VanEck Vectors Semiconductor ETF (SMH) is also on IBD’s SwingTrader. It rose 0.4% Wednesday.
Once again, as with Dow Jones futures, overnight action in individual stocks doesn’t always carry over into the next day.
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