Stock market futures today jumped vs. fair value. Dow Jones futures, S&P 500 futures and Nasdaq futures all rose sharply Sunday as the Trump administration said a China trade war is “on hold.” Meanwhile, last week’s sideways stock market action had different chart implications for leaders such as Apple (AAPL), Nvidia (NVDA), Facebook (FB) and Salesforce.com (CRM). Meanwhile, hot stock Pure Storage (PSTG) reports earnings late Monday.
China Trade War
President Donald Trump won’t impose China trade tariffs for now as the two countries make “meaningful progress” in trade talks, Treasury Secretary Steven Mnuchin said Sunday: “We are putting the trade war on hold.” On Saturday the two countries released a statement in which China proposed to “significantly increase purchases” of U.S. goods. There was no dollar figure despite Trump economic adviser Larry Kudlow suggesting previously that China had agreed to buy $200 billion more in U.S. goods.
Stock Market Impact On Apple, Facebook
Last week’s the S&P 500 index, Dow Jones and Nasdaq composite all rose Monday but closed the week modestly lower. That spurred similar action in top stocks, but with different chart implications. Along with some other stocks in consolidations, Facebook has formed a handle with a new buy point. A few stocks that were slightly extended, notably Apple and Nvidia, have moved back into the 5% buy zone from their double-bottom bases. But some stocks that were just past entry points tested or undercut them, including Salesforce.com and some other top software stocks.
Salesforce has the best Composite Rating of those four stocks, with a 98 CR. Nvidia boasts a 95 Composite Rating with Facebook at 94 and Apple at 89. The Composite Rating combines several IBD proprietary ratings into a single score. Big stock winners often have a Composite Rating of 95 or better near the start of big runs. Also, Apple stock is a member of IBD Leaderboard, while Nvidia is an IBD 50 stock.
Stock Market Futures Today
Stock market futures signaled strong gains for the coming week. Dow Jones futures leapt 0.8% vs. fair value. S&P 500 futures climbed 0.6%. Nasdaq 100 futures were up 0.75%.
A strong open in Monday’s stock market trading could push the likes of Facebook and Salesforce into buy zones, while lifting Apple and Nvidia back out.
Pure Storage reports late Monday, with analysts expecting revenue to rise 38% to $253 million. Losses should narrow to 12 cents a share vs. 14 cents a year earlier. Pure Storage’s data storage systems use flash-chip technology.
The stock cleared a 21.43 cup-with-handle buy point on May 7 and has continued to climb, further extended from the 5% chase zone.
Pure Storage has a 92 Composite Rating and is a Leaderboard stock.
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