Dow Jones futures were little changed Thursday night, along with S&P 500 futures and Nasdaq futures after the current stock market rally held near 2019 highs, with growth stocks generally faring well. Broadcom (AVGO), Adobe (ADBE), Oracle (ORCL), Ulta Beauty (ULTA) and DocuSign (DOCU) reported earnings late. Broadcom stock, Adobe stock, Oracle stock, Ulta stock, DocuSign stock all closed in or near buy range. Meanwhile, Facebook stock extended losses late as two top executives at the social media giant are leaving.
Broadcom stock has an IBD Composite Rating of 98 out of a best-possible 99. Adobe stock has a 97 Composite Rating. Ulta stock and DocuSign stock are at 96. Oracle stock has a decent 86 Composite Rating. All-time stock winners often have a Composite Rating of at least 95 near the start of big runs. Facebook (FB) has a 94 Composite Rating.
Dow Jones Futures Today
Dow Jones futures rose 0.2% vs. fair value. S&P 500 futures were flat. Nasdaq 100 futures edged lower. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Current Stock Market Rally
The current stock market rally had a quiet session. The Dow Jones edged higher while the S&P 600 index dipped 0.1% and the Nasdaq composite nearly 0.2%. Growth stocks continued to lead the current stock market rally, with many software stocks getting bullish new ratings. Continuing to shine among best ETFs, the IGV iShares Expanded Tech-Software Sector ETF (IGV) rose 0.4% to 208.34. It’s in buy range from a 206.76 cup-with-handle buy point. The IGV ETF is on IBD’s SwingTrader.
Facebook Product Chief, WhatsApp VP Exit
Facebook CEO Mark Zuckerberg said in a blog post that Facebook Chief Product Officer Chris Cox, has quit. Chris Daniels, vice president of the Facebook messaging app WhatsApp, is also departing.
Facebook stock fell 1.75% late. In Thursday’s session, Facebook stock fell 1.85% on a New York Times report that the social media giant is under criminal investigation over data deals with electronics makers.
Broadcom earnings rose 8% to $5.55 a share in its fiscal first quarter. Revenue climbed 9% to $5.79 billion, its slowest sales growth since at least Q1 2016. Analysts expected Broadcom earnings per share to rise 2% to $5.23 with revenue up 9% to $5.82 billion.
Broadcom guided full-year revenue slightly above analyst views.
Broadcom stock 4.6% to 280.51 late, moving closer to a buy point. Shares closed down 1.1% to 268.20.
Broadcom stock has pulled back after hitting a record 286.63 in late February, just topping a yearlong consolidation. The current buy point is a handle entry at 286.73.
Shares bounced off the 50-day line this week. But the relative strength line has continued to slide over the past month after a steady climb from late August. The RS line tracks a stock vs. the S&P 500 index.
Adobe earnings rose 10% to $1.71 a share. The digital media and marketing software maker’s revenue climbed 25% to $2.6 billion.
Analysts expected Adobe earnings of $1.62 a share, with revenue at $2.55 billion.
But Adobe earnings and revenue guidance for the current quarter is below views.
Adobe stock fell 2.4% to 261.25 late, signaling a test of two buy points. Shares closed up 1.25% to 267.69.
Adobe stock broke out of a double-bottom base with a buy point of 260.82 on Feb. 12. It also has an alternate handle entry 263.46 handle. Adobe stock reclaimed both buy points this week after retreating last week.
The RS line has been moving sideways, at highs, for the past nine months.
Oracle earnings came in at 87 cents a share on revenue of $9.6 billion. Analysts expected Oracle earnings per share of 84 cents with sales at $9.6 billion.
Oracle stock sank about 3% to 51.43. Shares closed down 2 cents to 53.04, just below 53.58 buy point in a yearlong consolidation and it’s been going sideways for nearly two years. The relative strength line has been trending lower since late 2011.
Ulta earnings climbed to $3.61 a share. Sales came in at $2.12 billion, with same-store sales up 9.4%.
Analysts expected Ulta earnings per share to vault 29% to $3.56, with sales up 9% to $2.11 billion.
Ulta Beauty sees full-year EPS of $12.65-$12.85, with same-store sales up 6%-7%. Analysts had forecast Ulta earnings at $12.72 a share.
Ulta stock climbed 3.7% to 324.14. Shares closed down 0.9% to 312.51. Ulta stock is already extended from a 294.54 cup-with-handle entry. The RS line has been rising for the past three months, but is not yet at consolidation highs.
Ulta stock, like Adobe stock, is on the IBD 50.
DocuSign earnings came in at 6 cents a share, its fourth straight profitable quarter. Revenue rose 34% to $199.7 million.
Analysts expected DocuSign earnings of 1 cent a share on revenue of $193.6 million.
The maker of software tools that automate electronic filing of contracts and digital certificates also gave bullish Q1 and full-year revenue guidance.
But DocuSign stock tumbled 6.75 to 54.89 in late trading, signaling a move below the buy point. Shares of the May 2018 IPO closed up 2.1% to 58.85, still in buy range.
DocuSign stock cleared a 56.99 cup-with-handle buy point this week but below the 68.35 high set Aug. 28. The base is 49% deep, which is not a great sign. The RS has been climbing but still a ways off the consolidation high, along with the share price.
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