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Nasdaq, S&P 500 Futures Pop: FANG Stocks Alphabet, Amazon Signal Buys | Stock News & Stock Market Analysis

Futures for the S&P 500 index and especially the Nasdaq 100 rose late Thursday after a wave of big earnings late, with megacap techs Amazon.com (AMZN), Google parent Alphabet (GOOGL) and Microsoft (MSFT) all up sharply, and with the two FANG stocks signaling likely buying opportunities. Chip plays Intel (INTC) and KLA-Tencor (KLAC) also advanced. On the downside, Baidu (BIDU) was among several losers.

XAutoplay: On | OffS&P 500 index futures rose 0.1% vs. fair value. Nasdaq 100 futures popped 0.9%. Dow industrials futures were essentially flat. During Thursday’s stock market trading, the S&P 500 rose 0.1% and the Dow 0.3%, while the Nasdaq composite retreated 0.1%.

Amazon

Amazon earned 52 cents a share a share, obliterating views for just 1 cent. Revenue grew 34% to $43.7 billion, beating the consensus for $42 billion. Amazon Web Services revenue leapt 42% to $4.58 billion in Q3. AWS had operating profit of $1.171 billion vs. the companywide $347 million.

Amazon shot up 8% to 1,050 in late trading. That suggests a high-volume rebound from its 50-day moving average, which would offer a buying opportunity. However, the stock could find resistance below its old high of 1,083.31. Amazon is in a late-stage flat base with a potential entry of 1,083.41.

Alphabet

Adjusted earnings climbed 32% from a year ago, with revenue jumping 24% to $27.77 billion. Both cleared earnings views.

Google doesn’t break out its cloud computing revenue, grouping it in “other revenues,” which rose 40% to $3.405 billion. Google executives touted cloud growth on its post-Q3 call. Google reached a deal with Cisco Systems (CSCO) this week to market its cloud-computing services to the enterprise market as it takes on Amazon Web Services and Microsoft’s Azure.

Alphabet shares rose 3% to 1,021 in late trading. That suggests the stock will retake a 1006.29 buy point briefly cleared earlier this month.

Google gets most of its money from online advertising. So its gains there bode well for Facebook (FB), which will report earnings in early November. Facebook shares rose 1.4% to 173 in late trade, trying to get back above a 175.59 entry.

Microsoft

Microsoft earnings rose 17% to 84 cents a share, defying views for a dip to 72 cents. Revenue grew 12% to $24.54 billion. Microsoft said its Azure cloud-computing revenue shot up 90%, though it didn’t give an actual dollar figure. The Intelligent Cloud division, which includes Azure and Windows Server, saw a 14% gain to $6.9 billion.

“This quarter we exceeded $20 billion in commercial cloud (annualized revenue run rate), outpacing the goal we set just over two years ago,” Microsoft Chief Executive Satya Nadella said in a  statement.

Microsoft rose more than 4% to 82.11 in late trading. The Dow tech titan’s stock was already modestly extended from a breakout.


IBD’S TAKE: Buying or holding a stock can be risky heading into an earnings report. If you owned Amazon, you’re happy now, but Baidu holders seem headed for a big retreat. Here’s an earnings options strategy that can help you cash in on post-earnings stock gains, while minimizing the risk from a weak quarter.


Baidu

Baidu appeared to deliver earnings that crushed third-quarter estimates. But the Chinese search giant, which is becoming a big leader in artificial intelligence, gave weak Q4 guidance. Baidu shares fell 10% to 234 late, signaling a move below its 50-day moving average. Baidu hasn’t had a very long run and it’s unclear how heavy the weekly volume will be, so this may not trigger a clear long-term sell signal.

(During Thursday’s session, Chinese for-profit education stocks Tal Education (TAL) and New Oriental Education (EDU) did trip long-term sell signals, including high-volume sell-offs through their 10-week lines.)

In addition to Baidu, Mattel (MAT) and Expedia (EXPE) were huge losers in late trading while Cerner (CERN) and Fortinet (FTNT) also sold off late Thursday following their quarterly reports.

RELATED:

Google Shoots To All-Time High After Beating Earnings Views

Amazon Blows Past Earnings Views, Beats On Sales; Shares Soar

Microsoft Tops September-Quarter Sales, Earnings Targets

Baidu Dives On Weak Revenue Forecast

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