Dow Jones Futures Rise, Led By JPMorgan, Goldman Sachs; Apple Stock In Buy Range

Dow Futures Rise

Dow Jones futures showed slightly higher movement early Tuesday along with S&P 500 and Nasdaq 100 futures. Invesco QQQ Trust (QQQ) was up 0.3{6c2ee02bcd8e4babb54279c3ba0da46f03ed822bc96c85cd54ee7f8408144ace}, poised to open above its 50-day moving average.

FANG stocks like (AMZN), Google-parent Alphabet (GOOGL) and Facebook (FB) showed gains mostly in line with the Nasdaq despite news of another House inquiry. It was reported that the House Small Business Committee wants to question the three firms about their impact on small businesses.

Apple (AAPL) picked up 0.5{6c2ee02bcd8e4babb54279c3ba0da46f03ed822bc96c85cd54ee7f8408144ace} in premarket trading to 225. The Leaderboard stock jumped more than 2{6c2ee02bcd8e4babb54279c3ba0da46f03ed822bc96c85cd54ee7f8408144ace} Monday after JPMorgan raised its price target to 265 from 243. Apple is back in buy range after reclaiming a 221.47 entry Monday.

Two Upgrades

Shares of Philip Morris (PM) were up around 1{6c2ee02bcd8e4babb54279c3ba0da46f03ed822bc96c85cd54ee7f8408144ace}. Citing limited exposure to vaping, Bank of America upgraded shares to buy from neutral. Philip Morris sports a huge annualized divided yield of 6.2{6c2ee02bcd8e4babb54279c3ba0da46f03ed822bc96c85cd54ee7f8408144ace}, but shares have been under pressure since late July, boosting the yield.

In the semiconductor sector, Analog Devices (ADI) was poised for a gap above its 50-day moving average. Shares gained 2.5{6c2ee02bcd8e4babb54279c3ba0da46f03ed822bc96c85cd54ee7f8408144ace} to 114.50, helped by an upgrade from KeyBanc to outperform and 130 price target, according to Benzinga.

The third quarter came to an end Monday, much to the delight of growth investors. Utilities Select Sector SPDR ETF (XLU) was a strong performer, up 8.6{6c2ee02bcd8e4babb54279c3ba0da46f03ed822bc96c85cd54ee7f8408144ace}. So was iShares 20+ Year Treasury Bond ETF (TLT), up 7.7{6c2ee02bcd8e4babb54279c3ba0da46f03ed822bc96c85cd54ee7f8408144ace}.

But it wasn’t a good quarter at all for growth stocks, with Innovator IBD 50 ETF (FFTY) down 5.9{6c2ee02bcd8e4babb54279c3ba0da46f03ed822bc96c85cd54ee7f8408144ace}. Still, it’s important to keep watch lists fresh, because a comeback in growth stocks could happen when it’s least expected.

Meanwhile, violent protests continued in Hong Kong as China marked the 70th anniversary of the People’s Republic of China.

Dow Jones Futures Today

Dow Jones futures were up 0.2{6c2ee02bcd8e4babb54279c3ba0da46f03ed822bc96c85cd54ee7f8408144ace} vs. fair value.

The 10-year Treasury yield gained 6 basis points to 1.73{6c2ee02bcd8e4babb54279c3ba0da46f03ed822bc96c85cd54ee7f8408144ace}, helping the cause of JPMorgan (JPM) and Goldman Sachs (GS) in the Dow Jones.

After aslight pullback, JPMorgan closed Monday just above a 117.34 buy point. Goldman Sachs, meanwhile, is trading near its 50-day moving average as it works on a cup-with-handle base.

For the bulls, Monday’s gains were nice to see, but technical challenges remain for the Nasdaq composite and S&P 500. The Nasdaq is still below its 50-day moving average. The S&P 500 is above its 50-day line, but the 3000 level has been a bottleneck.

ETF News

Among the best ETFs Monday, the Innovator IBD 50 ETF (FFTY) advanced 0.75{6c2ee02bcd8e4babb54279c3ba0da46f03ed822bc96c85cd54ee7f8408144ace} after falling 2.6{6c2ee02bcd8e4babb54279c3ba0da46f03ed822bc96c85cd54ee7f8408144ace} on Friday. The iShares Expanded Tech-Software Sector ETF (IGV) rose 1{6c2ee02bcd8e4babb54279c3ba0da46f03ed822bc96c85cd54ee7f8408144ace}, less than half of Friday’s 2.25{6c2ee02bcd8e4babb54279c3ba0da46f03ed822bc96c85cd54ee7f8408144ace} retreat.

While most software stocks have taken a beating lately, a couple continue to hold their own, including Proofpoint (PFPT) and DocuSign (DOCU).

Proofpoint reclaimed a 128.98 entry Monday, rising 4{6c2ee02bcd8e4babb54279c3ba0da46f03ed822bc96c85cd54ee7f8408144ace} in higher volume. DocuSign, meanwhile, has been holding gains smartly after a powerful move over a 59.72 buy point.

It’s a quiet week of earnings, but results from Costco (COST), another Leaderboard stock, are due Thursday after the close. The top-performing retailer is holding just above its 50-day moving average and a 284.41 buy point ahead of the results.

In economic news, a couple of key pieces of manufacturing data will be out just after the open. The Purchasing Managers Index for September is due at 9:45 a.m. ET. The ISM manufacturing index comes out at 10 a.m. ET.


Mary Wheeler

The financial markets of the nation are affected by many factors. These include retail factors, prices, market crashes, political standpoints, and many others. Mary Wheeler examines these factors and publishes them in a manner that is easy to understand and easier to implement. Look out for her space to get some useful market information to make sounder investments!

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