Dow Jones futures fell slightly late Monday, along with S&P 500 futures and Nasdaq futures. Upscale furnishings retailer RH (RH), Apple (AAPL) iPhone chip supplier Cirrus Logic (CRUS), Coupa Software (COUP) and recent IPO stock Smartsheet (SMAR) all reported earnings and/or guidance after the close. RH stock and Smartsheet stock rose sharply. Coupa Software stock edged lower just below a possible entry point. Cirrus Logic stock sold off, with Apple stock showing a fractional retreat.
In Monday’s stock market action, the major averages enjoyed solid gains after President Donald Trump and Chinese President Xi Jinping reached a trade-war cease-fire. The Nasdaq composite rose 1.5%, while the Dow Jones and S&P 500 index each advanced 1.1%. The Dow Jones reclaimed its 50-day moving average, while the S&P 500 index moved back above its 50-day and 200-day lines. But the Nasdaq was unable to close above its 50-day. Worse, several top stocks attempting breakouts failed to close in buy zones. The few that did generally did so on unimpressive volume.
Dow Jones Futures Today
Dow Jones futures fell 0.1% vs. fair value. S&P 500 futures sank 0.1%. Nasdaq 100 futures retreated 0.2%. Remember that overnight action in Dow futures, RH stock and elsewhere doesn’t necessarily translate into actual trading in the next regular session.
RH Earnings Send RH Stock Soaring
RH earnings rose 66% vs. a year earlier to $1.73 a share adjusted, crushing estimates by 47 cents. The upscale home furnishings retailer, former known as Restoration Hardware, also reported strong sales growth and bullish holiday guidance.
Shares leapt 20% in late trade and were working on the right side of a consolidation going back nearly five months. RH stock closed up 6.5% to 123.65, moving back above its 50-day and 200-day moving averages.
Apple Chipmaker Cirrus Logic Warns
Cirrus Logic sees fiscal Q3 revenue of $300 million and $340 million, well below its prior forecast for $360 million to $400 million, citing “recent weaknesses in the smartphone market.” Analysts had expected $360 million, according to Zacks Investment Research, though some others pegged sales at $366.5 million.
Cirrus Logic stock fell nearly 7% in late trading.
Apple Stock Impact
It’s unclear how much impact the Cirrus Logic warning will have on other stocks in the Apple iPhone ecosystem. Several other iPhone chipmakers have warned in recent weeks, and Apple itself gave cautious holiday guidance on Nov. 1. Analysts have slashed Cirrus Logic earnings forecasts over the past month.
Apple stock fell nearly 1% in late trade. Shares rallied 3.5% during Monday’s stock market trading, but remains well below its 200-day line. Apple stock, once again boasting the biggest market cap, is a member of the Dow Jones, S&P 500 index and Nasdaq composite.
Coupa earnings came in at 8 cents a share, reversing a year-earlier loss of 5 cents and besting Q3 forecasts for a 3-cent loss. Revenue popped 42% to $67.5 million. The maker of a cloud-based platform to help companies control spending also gave bullish guidance for the current quarter.
Coupa stock fell 2.6% in late trade.
During Monday’s session, Coupa stock rose 6.8% to 68.80, reclaiming its 50-day line. Coupa is in a consolidation going back three months. It’s a double-bottom base, which would give a buy point of 69.87. But the middle of the W, though above the midpoint of the base, is below the 50-day line. That makes the pattern a little more suspect. Veeva Systems (VEEV) and Mastercard (MA) just closed in buy range from similar flawed double-bottom bases on Monday, while Amazon.com (AMZN) nearly did so.
Smartsheet’s earnings report was better than expected. The business software firm lost 9 cents a share, less than expected. Revenue climbed 59.5% to $46.87 million. Guidance also was strong.
Smartsheet stock, which came public at 15 a share in late April, rose 4.4% in late trade. Shares hit a record high of 33.98 on Sept. 5, then tumbled to 20.34 intraday on Nov. 20. Smartsheet stock edged up 0.6% to 27.06 in Monday’s session.
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