Dow Jones futures fell modestly late Thursday along with S&P 500 futures and Nasdaq futures, after the Nasdaq composite suffered its third straight loss. Palo Alto Networks (PANW) and fellow cybersecurity stock Okta (OKTA) jumped late on earnings, with their stocks indicating big jumps to new highs on Friday. So did Five Below (FIVE). Struggling Apple (AAPL) iPhone chipmaker Broadcom (AVGO) also rallied on earnings, good news for a reeling chip sector.
Palo Alto Networks and Five Below are both members of the IBD 50 stock screen. Palo Alto stock and Five Below stock both boast best-possible 99 Composite Ratings. Okta stock, a 2017 IPO that’s still not profitable, has a 77 Composite Rating. Broadcom stock has a lowly 37.
During Thursday’s session, the Nasdaq composite fell 0.9% after a 1.3% tumble Wednesday. Gloomy comments by KLA-Tencor (KLAC) and Micron Technology (MU) slammed chip stocks. Apple and Amazon.com (AMZN), the world’s most valuable companies, fell 1.7% and 1.8%, respectively, but both charts look healthy.
Dow Jones Futures Today
Dow Jones futures slid 0.15% vs. fair value. S&P 500 futures sank almost 0.2%. Nasdaq 100 futures retreated nearly 0.4%. Keep in mind that Dow Jones futures and other overnight action may not translate into actual trading in the next regular session. Nasdaq futures didn’t suggest heavy selling in tech futures the past two sessions.
President Donald Trump could significantly escalate the China trade war at midnight Friday. With the public comment period over, the U.S. could impose Trump tariffs on a further $200 billion in Chinese imports as soon as midnight Friday. That’s on top of 25% Trump tariffs on $50 billion worth of Chinese goods. Beijing has vowed to retaliate. It can’t continue to match Trump tariffs dollar for dollar, but also has a number of other non-tariff options to hurt U.S. goods and companies.
On Thursday, Trump hinted that Japan could be his next trade-war target.
This is all coming as the U.S. and Canada continue trade talks. Canada signaled late Thursday that a revised Nafta deal was unlikely this week.
Meanwhile, the Labor Department will release the August employment report at 8:30 a.m. ET. Economists expect a payrolls gain of 195,000, with the jobless rate dipping to 3.8% and the average hourly wage gain ticking up to 2.8%.
Palo Alto Earnings
Palo Alto earnings rose 39% to $1.28 a share, crushing fiscal fourth-quarter views for 92 cents. Revenue ran up 29% to $658.1 million, also topping.
Palo Alto stock shot up 6.1% to 233.85 in late trade. That would be a new high. Palo Alto stock closed down 0.8% to 220.37 in Thursday’s stock market trading, but held above a 219.48 flat-base buy point.
Fellow cybersecurity stock Okta reported a loss of 15 cents a share, flat vs. a year earlier but better than views for a 19-cent loss. Revenue shot up 57% to $94.6 million, also easily beating. Okta stock soared nearly 15% to 69.10 in late trade.
In the regular session, Okta rose 0.5% to 60.20, nearly reclaiming a 61.10 buy point after tumbling 5.1% Wednesday in heavy volume.
Five Below Earnings
The teen-and-tween-focused discount retailer reported a 23% sales gain to $347.7 million. Same-store sales rose 2.7%. Five Below earnings leapt 50% to 45 cents a share. The company also raised full-year estimates.
Five Below stock vaulted 9.7% to 126.70 in late trade. Shares rose 0.65% to 115.51 in Thursday’s session.
Broadcom earnings jumped 24% to $4.98 a share, topping Q3 views by 16 cents. Revenue grew 13% to $5.06 billion, a hair below analyst estimates. The profit and sales gains were the smallest in more than two years. But Broadcom stock rose 3.5% in late trade.
Shares closed down 2.5% to 215.97, hitting resistance at the 50-day line. The communications chipmaker, an Apple iPhone supplier, has struggled since late November. An aborted Qualcomm (QCOM) takeover bid and a panned CA (CA) deal have been headwinds. Apple chipmakers have not benefited much from Apple’s recent success. Semiconductors fell sharply on Thursday.
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