Stock futures clawed out of early losses and into tight gains Tuesday as earnings news drove busy premarket trading on the stock market today.
Nasdaq 100 futures and S&P 500 futures traded less than 0.1% above fair value. (For updates on this story and other market coverage, visit the Stock Market Today.)
Hasbro and Cadence Systems led among Nasdaq 100 stocks, Hasbro and Whirlpool topped the S&P 500.. Nasdaq 100 stocks Tesla (TSLA) and Apple (AAPL) were down 1.1% and 0.3%, respectively. IPOs Trade Desk (TTD) and Lyft (LYFT) moved higher.
Qualcomm (QCOM) took an early lead among chipmakers, up 2% on the roll out of what is purported to be China’s first 5G network. Medical equipment maker Waters (WAT) tanked to the bottom of the S&P 500 on disappointing first-quart results. Spam-maker Hormel (HRL) was also among the S&P 500’s hardest hit, down on an analyst downgrade.
Disney Stocks: Coke, United Tech Surge
Coca Cola and United Technologies each scrambled more than 3% higher in early action. Coke scored narrow earnings and revenue beats, following a boost from U.K. and European Union bottlers stockpiling inventory ahead of the U.K.’s potential exit from the EU.
Jet engine and aircraft components maker United Technologies posted an 8% earnings gain, vs. views for a decline. Revenue jumped 20%, comfortably topping analyst estimates. United is extended, up almost 6% since moving above a 129,.74 buy point on April 1.
Twitter Poised For Breakout
Twitter flew nearly 8% higher, implying an early breakout Tuesday. A 132% earning gain surprised analysts expecting a slight decline, and 18% revenue growth also topped views. The company reported 330 million monthly average users, down vs. year-ago levels, but higher than Q4.
Twitter shares closed Tuesday 3% below a 35.49 buy point in a four-month cup-with-handle base. The base formed within a larger consolidation, which weighs the breakout with added risk from overhead supply.
FANG Watch: Alphabet, Netflix Near Buy Points
Facebook ended Monday 47% above a December low and above the mid-point in a possible nine-month base pattern. It reports earnings Wednesday after the stock market’s close.
Netflix stock is trading in a buy range above a 371.59 cup with handle entry.
Google parent Alphabet ( GOOGL) is in the 5% buy range above a saucer with handle’s 1,236.54 entry.
Oil Prices Edge Higher
Oil prices ticked higher after scoring, on Monday, their biggest one-day gain since Feb. 1. The Trump Administration announced it would net extend beyond May 2 the oil-purchase waivers allowing 8 countries to purchase oil from Iran without penalty from the U.S. Those waivers included China and India, Iran’s largest oil buyers. The White House said it aims to drive Iran imports to zero. The country’s exports have already been halved under U.S. sanctions launched in October. Iran reportedly still exported 1.4 million barrels in March.
West Texas Intermediate rose 0.7% to 65.99 a barrel. Europe’s Brent crude benchmark gained 0.4% to 74.34. WTI marked its highest closing price on Monday since Oct. 30. The United States Oil Fund (USO) traded up 0.4% in premarket action. The Citigroup Global Markets VelocityShares 3x Long Fund (UWT) gained 0.9%.
IPO Watch: Lyft, Trade Desk Rising
Lyft popped nearly 3% ahead of the open, looking to extend its first rebound. Shares gained in three of four recent sessions, lifting shares about 10% off Friday’s low. The stock has yet to form a proper IPO base.
Trade Desk moved up 0.4% ahead of the open. The online ad service jumped 6% on Monday, making it a potential buy as a rebound from 10-week support, although trade was weak. Trade Desk’s current consolidation is nearly 17% deep, which requires one more week to become a valid cup base.
A Hawkish Turn In China Monetary Policy?
Hong Kong’s market returned from its holiday break with a flat performance, and the Shanghai Composite slipped 0.5%. Markets were cautious after the Central Financial and Economic Affairs Commission said China’s monetary policy “should be fine-tuned in a timely and pre-emptive way based on economic growth and changes in price situations.”
The comment was the fourth recent hint from regulators of a more hawkish turn in policy, and followed a raft of strong economic growth data last week.
In Japan, Tokyo’s Nikkei 225 climbed 0.2%. Europe’s markets also re-opened after a three day holiday, and were mixed near midday — London’s FTSE 100 gained 0.3%, while Frankfurt’s DAX and the CAC-40 in Paris each traded 0.2% in the red.
Follow Alan R. Elliott on Twitter @IBD_Aelliott
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