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Cisco Hits Buy Point; 3 Apple Chipmakers Tested: S&P 500 Futures | Stock News & Stock Market Analysis

Futures for the S&P 500 index rose slightly in late trading Wednesday as Cisco Systems (CSCO) signaled a move back into buy range on strong earnings and guidance. The major averages retreated Wednesday, with Apple (AAPL) falling for a fifth straight session. A trio of Apple iPhone chipmakers — Broadcom (AVGO), Skyworks Solutions (SWKS) and Qorvo (QRVO) — struggled to stay in buy zones.

XAutoplay: On | OffS&P 500 index futures rose a fraction vs. fair value. So did Nasdaq 100 futures. Dow futures rose nearly 0.1%, helped by Cisco and Procter & Gamble (PG).

Meanwhile, Chinese gaming giant NetEase (NTES) easily beat third-quarter earnings views late Wednesday.

Cisco Systems

Cisco Systems earned 61 cents a share adjusted, flat vs. a year earlier but beating fiscal first-quarter forecasts by a penny, according to Zacks Investment Research. Sales dipped 2% to $12.14 billion, in line with views after missing estimates in three of the prior four quarters. Cisco expects Q2 EPS of 58 to 60 cents vs. the consensus for 59 cents. Cisco sees Q2 revenue up 1% to 3% vs. analyst estimates for a 1% gain to $11.58 billion. That would be the first year-over-year sales gain in nine quarters.

Deferred revenue rose 10% in the latest quarter as the networking giant transitions toward software and services.

Cisco shares shot up 5.2% to 35.87 in late trading in the stock market today. That would push Cisco back above its 34.20 cup-with-handle buy point initially cleared on Oct. 20. Shares of the Dow component closed up 8 cents to 34.12.

Keep in mind that overnight action can be volatile and not reflect how a stock will open or close in the next regular trading session.


NetEase earned $3.43 a share in the third quarter, up a penny vs. a year earlier and defying forecasts for a drop to $3.04. Revenue climbed to $1.88 billion, up from $1.381 billion a year earlier and beating views for $1.836 billion.

Shares rose 2.2% to 308.99 in late trading.

NetEase closed the regular session up 1.3% to 302.49. That also finished off a proper handle, giving NetEase a much lower potential buy point of 320.77 vs. the previous 337.65.

The Chinese video game giant has rallied recently on plans to invest $11 billion in e-commerce.


Apple fell for a fifth straight session, losing 1.3% to 169.08, after Wells Fargo initiated Apple at market perform, or neutral.

That leaves the iPhone maker just beyond the 5% chase zone that runs to 169.02 from a 160.97 cup-with-handle entry. Apple dipped to 168.38 intraday. Shares hit a record 176.24 on Oct. 8.

Apple Chipmakers

Apple chipmakers Broadcom, Skyworks Solutions and Qorvo all fell below recent buy points intraday.

Broadcom closed up 0.9% to 265.73 after dropping as low as 258.03. The stock has a 259.46 flat-base entry. Broadcom recently made a $130 billion takeover bid for Qualcomm (QCOM), which this week rejected the offer.

Skyworks sank 2.1% to 108.89 after finding support near its 50-day moving average and rebounding from an intraday low of 107.14. But that’s still below a recent 110.71 entry.

Qorvo suffered the biggest daily loss, closing down 2.2% to 76.68. But that’s just above its 76.57 entry after hitting 76.33 intraday.

P&G, NetApp

In other notable after-hours action, Procter & Gamble rallied 2.4% on word that Nelson Peltz had won a proxy fight recount and will get a board seat on the consumer products giant. Last month Procter & Gamble, a Dow component like Apple and Cisco, had said that Peltz had narrowly lost in a preliminary count.

NetApp (NTAP) shot up 9.3% late after the data-storage giant reported strong earnings and revenue. NetApp was already in a buy zone but is likely to open extended.


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