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Futures Mixed On Nike, Tesla, Tax Reform; This Retailer Poised For Breakout | Stock News & Stock Market Analysis

Stock futures were mixed in close trade early Friday as a federal effort to overhaul the tax code and company news from Nike (NKE) and Tesla (TSLA) helped drive the premarket session.

XAutoplay: On | OffNasdaq 100 futures edged up a fraction, with Tesla, Ross Stores (ROST) and 21st Century Fox (FOX) providing early lift. Futures for the Dow Jones industrial average sagged 0.1%, as Boeing (BA) and Goldman Sachs (GS) dragged at the bottom of the list, down 0.5% and 0.3%, respectively.

S&P 500 futures traded effectively flat, while Russell 2000 futures dipped 0.1%.

House Republicans succeeded Thursday in passing a tax reform package offering $1.5 trillion in tax cuts over the next decade. Attention now turns to the Senate’s tax reform effort, a separate bill, being pushed toward a vote next week. Lawmakers aim to reconcile the two proposals and pass a single piece of legislation before the end of the year.

Before Friday’s starting bell, the Nasdaq Composite leads the big index’s for the week, up 0.6% and just a heartbeat off a new high. The Dow is up 0.3% so far for the week and trading less than a half-percent below its Nov. 7 high. The S&P 500 shows a 0.1% gain after a big jump on Thursday.

Small caps will be a segment to watch, with the Russell 2000 up 0.8% through Thursday, looking for its first gain in four weeks and fighting to break resistance at its 10-week moving average.

Tesla Unveils Big Rig, Nike Hikes Dividend

On the Dow, gainers easily outpaced decliners in premarket action with Nike leading, up 1.9% after announcing late Thursday plans to hike its quarterly dividend to 20 cents, an 11% increase. The stock is trading just below a 57.35 buy point in a cup-with-handle base.

Tesla shares popped 3% in premarket action after Thursday evening’s expected introduction of the Tesla big-rig truck, and the surprise revelation of the latest version of the Tesla Roadster. The truck’s 500 mile-per-charge range and the Roadster’s 620 mile range and 0-60 in two seconds performance earned positive reviews.

Tesla shares are trading below their 40-week moving average, nine weeks into a possible double-bottom base pattern.

Chip equipment maker Applied Materials (AMAT) cranked up a 3% gain, reporting a 41% earnings gain and revenue growth of 20%, both above analyst expectations, in its fiscal fourth quarter.  The IBD 50 stock is extended above a late-stage base, and broke to a new high Thursday, clearing its previous record from April 2000.

Retailers were hammering out a busy premarket session as late-season earnings reports continued to roll in.

Ross Stores headed 8% higher, reporting after Thursday’s close its third-quarter results comfortably topped analyst targets. Fourth-quarter guidance just met consensus views. Shares ended Thursday a fraction below a 66.26 buy point in a flat base.

Williams-Sonoma (WSM) traded down hard, losing 12% ahead of the open. The San Francisco-based retailer reported third-quarter results that just met expectations, and offered fourth-quarter revenue guidance below consensus views. The company also announced its acquisition of 3D imaging products developer Outward for $112 million in cash.

The stock has surged 25% since Nov. 7, shaping a handle on a seven-month base.

Nikkei Snuffs 9-Week Rally; Housing Starts On Deck

In economic news, October housing start and building permits estimates are due from the Commerce Department at 8:30 a.m. ET.

In Japan, Tokyo’s Nikkei 225 rose 0.2% Friday, rebounding for a second day but still taking home a 1.3% decline for the week and ending a nine-week rally  — the index’s longest since a 12-week run in 2012-13.

In China, Hong Kong’s Hang Seng index jumped 0.6%, leaving it ahead 0.3% for the week. Mainland markets were weaker, with the Shanghai Composite down 0.5% Friday to end the week with a 1.5% loss.

In Europe, markets held narrow gains at mid-session, with the CAC-40 in Paris, Frankfurt’s DAX and the FTSE 100 in London all ahead 0.1%.

RELATED:

The Big Picture: Tax-Cut News Fuels Rally; This Index Makes Bullish Move

House Passes GOP Tax Plan, But Senate Bill Is Still In Doubt

New York Fed Revisits Volatility, Sees Healthy Fear In VIX Curve

 

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