Dow Jones futures were little changed early Thursday morning, along with S&P 500 futures and Nasdaq futures. Cisco Systems (CSCO) and Take-Two Interactive (TTWO), two techs that closed near buy points, fell overnight following quarterly earnings and guidance. Take-Two’s results could influence video game peers Electronic Arts (EA) and Activision Blizzard (ATVI), which are also working on consolidations. Meanwhile, Loxo Oncology (LOXO) skyrocketed on bullish trial data.
In Wednesday’s stock market trading, the Dow Jones industrial average rose 0.25%, the S&P 500 index gained 0.4% and the Nasdaq composite advanced 0.6%. The small-cap Russell 2000 index jumped 1%, hitting a record high. The 10-year Treasury yield rose to 3.1%, a fresh seven-year high. The two-year yield is at 2.59%, but the yield spread has widened slightly to 51 basis points.
Dow Jones Futures
As for stock market futures, Dow Jones futures were just a fraction above fair value. S&P 500 futures and Nasdaq 100 futures edged higher. Cisco Systems, with a market cap of $218 billion, is a sizable component in all three major stock market indexes. Keep in mind that Dow Jones futures — as well as overnight action for Cisco, Take-Two Interactive, Loxo Oncology and others — may not translate into actual trading in the next regular session.
Cisco earned 66 cents a share in its fiscal third quarter, up 10% vs. a year earlier. Revenue grew 4% to $12.5 billion, the second straight quarter of year-over-year sales growth. Both narrowly topped estimates. The networking giant also gave in-line guidance.
But Cisco fell 3.6% in late trading. Investors may have hoped for upside results or targets as Cisco transitions from legacy switches and routers to faster-growing software and services.
The stock dipped 0.7% to 45.16 Wednesday. Shares cleared a 46.26 cup-base buy point on May 10, but quickly pulled back. At first glance, Cisco’s chart looks like a cup-with-handle pattern with a lower buy point, but the stock didn’t quite consolidate for the minimum seven weeks.
Take-Two Interactive Software
Take-Two Interactive reported better-than-expected earnings. But the maker of the “Grand Theft Auto” video game series and other titles reported weak revenue and guidance.
Take-Two stock was volatile in late trading, down 1.6% recently. The stock edged down 0.35% to 113.07 on Wednesday. The video game stock toyed last week with a 117.45 double-bottom-base buy point last week, but never hit that level. The stock could be forming a handle, though that would not change the entry point much.
Meanwhile, Electronic Arts and Activision Blizzard were slightly higher in late trading. Activision is about 11% off a possible buy point, but Electronic Arts is just a fraction from retaking a 131.23 buy point from a flat base.
Loxo Oncology rocketed 18% in late trade. It released upbeat data on an experimental drug, LOXO-292, that targets various cancers resulting from flaws in the RET gene.
The trial data were released ahead of the American Society of Clinical Oncology in Chicago next month.
Loxo hit a record high of 143.62 intraday Wednesday, well-extended from a 96.02 buy point cleared earlier this year.
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