Dow Jones futures rose modestly Sunday night, along with S&P 500 futures and Nasdaq futures. Last week, the S&P 500 index rose 0.8%. The Nasdaq composite climbed 1%, rebounding from its 50-day moving average. The Dow Jones inched higher. But that masked big moves on earnings. Apple (AAPL), a member of the Dow Jones, S&P 500 index and Nasdaq, soared nearly 9%. Tesla (TSLA) shot up 17%. Paycom Software (PAYC) exploded 23%.
Dow Jones Futures Today
As for stock market futures: Dow Jones futures rose 0.2% vs. fair value. S&P 500 futures climbed 0.15%. Nasdaq 100 futures advanced 0.25%.
23 Top Stocks With Earnings Due
Earnings season won’t have as many brand names such as Apple stock and Tesla this week, but there is plenty to keep investors busy. Five companies with best-possible 99 Composite Ratings are on tap this week: Ligand Pharmaceuticals (LGND), Energen (EGN), Vishay Intertechnology (VSH), Viper Energy Partners (VNOM) and Canada Goose (GOOS). In total, 23 stocks with Composite Ratings of 95 or more will report earnings. (For a complete list of notable companies reporting this week, including analyst estimates and report dates, check out IBD’s Earnings Calendar.)
The IBD Composite Rating combines several key fundamental and technical factors, including earnings, into a single score. While an investor should never buy on ratings alone, all-time stock winners often had Composite Ratings of at least 95 near the start of big runs. Apple stock, for its part, has a 99 Composite Rating and is an IBD Leaderboard member.
Earnings Moves Teach Lesson: Be Prepared
Last week some 17 stocks in the Nasdaq 100 reported earnings. Of those, 12 rose or fell at least 5% for the week. Four Nasdaq 100 members — Tesla stock, Take-Two stock, Illumina (ILMN) stock and Dish Network (DISH) — moved at least 10%. Meanwhile, several other notable stocks were huge movers, including Paycom stock (up 23%), Wingstop (WING) (up 16%), Zoetis (ZTS) (up nearly 8%), Zendesk (ZEN) (up 5.2%), Mindbody (MB) (down 14.5%), Shake Shack (SHAK) (off 12.5%) and PerkinElmer (PKI) (up 10.5%).
Stocks making big earnings moves underscores the importance of building a quality watch list. That way when a stock breaks out, you’ll be ready to capitalize near the buy point.
Apple stock, Paycom stock, Wingstop stock, Zoetis stock and PerkinElmer stock all cleared buy points after earnings. Zoetis and PerkinElmer stock are still in buy range. But Paycom and Wingstop were extended well beyond the 5% chase zone by the close of their initial breakout day.
Apple stock popped nearly 6% on Wednesday, breaking out of a flat base within a base-on-base formation, but closing in buy range. But on Thursday, by the time Apple cleared the $1 trillion market cap threshold, its shares were already extended. At this point, investors should wait for the stock to pull back into buy range in light volume, or await a new buying opportunity from a consolidation or rebound from the 50-day/10-week line.
That’s especially important with Apple stock. After four of the five prior Apple earnings reports, shares popped for a day or two or even a few weeks. But then Apple stock moved sideways for several weeks or months, often with some significant pullbacks.
Top Stocks On Tap With Possible Buy Opportunities
Carrizo Oil & Gas (CRZO) is finding support at 50-day moving average ahead of earnings Monday. A strong rebound from that area could offer a follow-on buy area. Or, if Carrizo Oil stock falls modestly, it would dip back into buy range from a prior breakout. Finally, Carrizo has been consolidating for a few weeks, and could soon form a base-on-base formation.
Jazz Pharmaceuticals (JAZZ) stock is in a flat base with a 184.10 buy point. Jazz, an IBD 50 stock member Jazz Pharma reports earnings Tuesday.
Canada Goose stock is finding support at its 10-week line ahead of earnings Thursday. Canada Goose has been consolidating for several weeks and soon could have a proper base as well with a traditional entry. Canada Goose is among IBD 50 Growth Stocks To Watch.
