Dow Jones futures rose Tuesday morning, along with S&P 500 futures and Nasdaq futures. Pure Storage (PSTG), Micron Technology (MU), Adobe Systems (ADBE), Shopify (SHOP) and SailPoint Technologies (SAIL) were notable movers overnight on news.
Meanwhile, China will cut its auto import tariff to 15% starting July 1 from the current 25%. That's good news for Tesla (TSLA) and other luxury brands that don't make cars in China.
Pure Storage topped first-quarter estimates, but still fell. Micron Technology, up sharply Monday on raised guidance, announced an Intel (INTC) deal and a big buyback after the close. In addition to its own repurchase plan, Adobe said it will buy Magento, a key rival to e-commerce software firm Shopify, which tumbled. SailPoint Technologies slid on a follow-on stock offering.
The stocks are generally highly rated. Adobe enjoys a 98 Composite Rating out of a best-possible 99. Micron and Shopify have 95 Composite Ratings. Pure Storage has a 92 CR. SailPoint, which came public last November, has a 74 CR. 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 their big runs.
Dow Jones Led Monday's Stock Market Advance
The Dow Jones rose 1.2% in Monday's stock market trading as Boeing (BA), Caterpillar (CAT) and other blue-chip industrial stocks rallied on the U.S.-China trade truce. The S&P 500 index climbed 0.7%, while the Nasdaq settled for a 0.5% advance.
Dow Jones Futures Today
Dow Jones futures rose 0.2% vs. fair value. S&P 500 futures were up 0.2%. Nasdaq 100 futures advanced 0.5%.
In addition to Micron, many optical component makers rallied on fresh hope that the U.S. will ease sanctions on Chinese telecom gear giant ZTE.
Micron Technology
Micron late Monday announced a $10 billion buyback program. The memory chip giant and Intel said their jointly developed QLC NAND flash memory is now available. Micron stock popped 5.1% in Tuesday's premarket. Early Monday, Micron raised its fiscal third-quarter earnings and revenue guidance to above consensus views. Micron rallied 3.9% to 55.48 on Monday. It's working on a consolidation with a 63.52 buy point.
Pure Storage
Pure Storage reported a smaller-than-expected loss and topped revenue views. But a dip in gross profit margin and in-line revenue guidance didn't satisfy investors, as shares tumbled 9.25% early Tuesday. That would wipe out all of the flash-memory storage device maker's breakout from a 21.43 cup-with-handle buy point. If Pure Storage undercuts that entry, it would roundtrip a 13% gain at Monday's intraday peak of 24.31. A 10%-plus roundtrip is an automatic sell signal.
Pure Storage closed down 0.4% at 23.58 on Monday.
Adobe Magento Buy Triggers Shopify Mudslide
Adobe will pay $1.68 billion for Magento, a major rival to Shopify. Adobe also announced a new $8 billion buyback program, helping to lift shares about 0.7% late. Adobe was quiet early Tuesday.
Shopify fell 0.9% early Tuesday, well off late Monday lows.
On Monday, Shopify tried to clear a 148.39 buy point from a cup-with-handle base, rising to 150.97 intraday. But shares reversed to close down 1.7% at 144.51.
Business software stocks were laggards Monday, continuing a minitrend despite a strong 2018 overall.
SailPoint Technologies
SailPoint announced plans to sell 15 million shares on behalf of existing holders. The cybersecurity IPO will receive no proceeds. SailPoint slid 3.4% early Tuesday, off overnight lows.
The stock has been trading near its 50-day line since pulling back after its quarterly earnings.
Refrence : www.investors.com
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