Dow Jones futures rose modestly late Thursday, along with S&P 500 futures and Nasdaq futures. Trump economic adviser Larry Kudlow said a China trade deal is “close,” catnip for the stock market rally. Chip leaders Nvidia (NVDA) and Applied Materials (AMAT) reported earnings after the close. Warren Buffett’s Berkshire Hathaway (BRKB) disclosed a stake in RH (RH) while trimming its Apple stock holdings. Meanwhile, an FDA panel backed another use for a key Amarin (AMRN) drug.
Nvidia stock fell modestly on weak guidance. AMAT stock rose, signaling a likely buying opportunity. Amarin stock remained under wraps after being halted throughout Thursday’s session, but isn’t far from a buy point. RH stock soared, suggesting a buying opportunity as well. Apple (AAPL) edged lower but largely erased overnight losses on the China trade deal headlines.
Apple stock is on IBD Leaderboard. So is Nvidia stock, along with several other chip names.
Dow Jones Futures Today
Dow Jones futures rose 0.35% vs. fair value. S&P 500 futures and Nasdaq 100 futures climbed 0.4%. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Dow Jones futures picked up after Trump adviser Larry Kudlow said a China trade deal is coming down to “short strokes,” but added that it’s not done yet.
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Current Stock Market Rally
The current stock market rally showed resilience Thursday, largely shrugging off a big sell-off in Cisco Systems (CSCO) on weak guidance.
The Dow Jones Industrial Average fell less than two points. The S&P 500 index rose 0.1%, while the Nasdaq composite edged lower.
Nvidia earnings came in at $1.78 a share as revenue fell 5% to $3.01 billion. Wall Street had targeted Nvidia earnings per share of $1.57 on revenue of $2.901 billion.
Nvidia guided low on sales though.
Nvidia stock fell 0.9% overnight. Shares edged up 0.6% at 209.79 on Thursday. Nvidia stock has been trading tightly over the past couple of weeks but is extended from a recent breakout.
Applied Materials Earnings
Applied Materials earnings came in at 80 cents a share as fiscal Q4 revenue fell a fraction to $3.75 billion. Analysts forecast Applied Materials earnings of 76 cents per share on revenue of $3.684 billion.
Applied Materials sees fiscal Q1 EPS of 87 to 95 cents on revenue of $4.10 billion at the midpoint. Analysts expected Applied Materials earnings per share of 72 cents and sales of $3.705 billion.
AMAT stock rose 4% to 59.24 overnight, signaling a likely buying opportunity. Shares dipped 0.3% on Thursday to 56.96. AMAT stock is extended from a 52.52 cup-base buy point, but it has formed a three-weeks-tight pattern with a 57.39 entry.
RH Stock Gets Warren Buffett Bounce
RH stock soared 6.8% overnight after Warren Buffett’s Berkshire Hathaway disclosed that it started a small holding in the upscale home-furnishings retailer. After finding support at its 50-day line for several days, RH stock is set to rebound bullishly from that key level.
Apple Stock Holdings Sliced
Warren Buffett trimmed Berkshire’s Apple stock holding by 750,000 shares. Apple stock fell a hair overnight. In Thursday’s session, shares hit a record high intraday but closed down 0.7% amid a rare sell rating for Apple stock.
Apple stock seems to be taking the negative news in stride. As long as the world’s most valuable company and member of the Dow Jones, S&P 500 and Nasdaq remains a leader, the stock market rally stands a good chance of thriving.
FDA Panel Backs Amarin Drug Vascepa
An FDA advisory committee voted 16-0 to back the cardiovascular benefit of Amarin’s Vascepa, its high triglyceride drug. The panel supports Amarin touting Vascepa to lower the risk of heart attacks and other cardiovascular events. The FDA will review the idea in December.
Amarin stock was not active late. Shares didn’t trade on Thursday after soaring 27% to 21.55 in the prior two sessions. Analysts see a big new market opportunity for Vascepa, predicting Amarin stock will keep rising. Amarin stock is moving toward a 24.01 cup-base buy point.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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