fundamental News - DJI5R


Dow Jones futures fell modestly Thursday night (Asia Friday morning), along with S&P 500 futures and Nasdaq futures. The Nasdaq again led the stock market rally to fresh highs, with tech giants Apple stock, Amazon.com (AMZN), Intel (INTC), Advanced Micro Devices (AMD) and Nvidia (NVDA) fueling the gains.

But the tech-heavy Nasdaq composite is becoming increasingly extended, raising the risk of a pullback.

Key Earnings Late
Intel jumped the gun, reporting earnings just before the close. , IBM (IBM)  reported quarterly results late Thursday.

Intel earnings and sales beat views while the Dow Jones chip giant also guided higher for Q1. Incoming CEO Pat Gelsinger, who takes over on Feb. 15, committed to keeping the chip giant's manufacturing business, despite calls from some investors to shed those assets. Intel stock fell nearly 5% overnight. That was after soaring 6.5% to 62.46 on Thursday, with some of those gains coming in the last few minutes on the early earnings release. Intel stock has been running on the announcement Gelsinger, Intel's former CTO, will become chief executive. But it's still far from a buy point.

Intuitive Surgical earnings and revenue rose slightly, rebounding from declines in the prior two quarters. The maker of the da Vinci robotic surgical system gave preliminary revenue figures last week. ISRG stock fell slightly in extended trade after closing up 10 cents at 798.67. Intuitive Surgical stock looks set to dip back below a 792.64 buy point. It could try to find support at the 10-week line again as it builds a short consolidation on top of the prior base.

IBM earnings topped views, but sales missed, once again declining vs. a year earlier. IBM stock tumbled overnight after rising 1.2% to 131.65 on Thursday. The Dow tech giant has a 131.98 buy point in a bottoming base. But it's still in a long-term downtrend, with weak fundamentals for years.

Tech Giants Eye Buy Points
As for other tech giants, Apple (AAPL) rose to just below a buy point. Amazon stock climbed toward possible early entries after regaining its 50-day line Wednesday. AMD stock moved back above key levels and within a prior buy zone. Nvidia stock rebounded from key support, but investors likely want to see a little more strength first.

But looming earnings as well as the extended stock market rally complicate buying any of those tech giants. Apple and AMD stock have earnings next week. Amazon is also next week. Nvidia isn't due for a few weeks, but may move on AMD's earnings and guidance.

Dow Jones Futures Today
Dow Jones futures fell 0.4% vs. fair value, with Intel and IBM stock weighing on the blue-chip index. S&P 500 futures lost 0.35% while Nasdaq 100 futures retreated 0.4%.