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S&P 500 Futures Point To Huge Losses Tuesday After Dow’s 4.6% Tumble | Stock News & Stock Market Analysis

Futures for the S&P 500 index, Nasdaq 100 and Dow Jones industrial average plunged early Tuesday morning after the worst losses in years for the major averages.

X Meanwhile, Micron Technology (MU) rallied late on earnings, while a pair of Apple (AAPL) chipmakers — Cirrus Logic (CRUS) and Skyworks Solutions (SWKS) — diverged after hours following their quarterly results.

The Dow Jones industrial average fell 1,175 points during Monday’s stock market trading, its worst point loss ever. The more-relevant percentage loss of 4.6% was not historic, but still the worst since August 2011. The S&P 500 index tumbled 4.1%, also its worst drop in six years, while the Nasdaq composite fell 3.8%. All three indexes drove below their 50-day moving averages.

Investors should be extremely cautious about making any buys in the current market environment. If you haven’t already, you should consider taking at least partial profits of winners and be quick to cut losses.

S&P 500 index futures tumbled 3.2% vs. fair value in volatile action. Dow futures plunged 4%. Nasdaq 100 futures fell 2.3%.

Keep in mind that overnight trading, for individual stocks or major indexes, does not always translate into how they will act at the market open and close the following day.

Micron Technology

The memory-chip giant earned $2.45 a share, up 666% vs. a year earlier and beating views for $2.22, according to Zacks Investment Research. Revenue swelled 71% to $6.803 billion vs. views for $6.387 billion. Micron is benefiting from strong demand and pricing for memory.

Micron shares rose 2.5% in late trading. That follows a 3.5% loss to 39.40 in the regular session to a two-month low. The stock is losing sight of its 50-day moving average.

Cirrus Logic

Cirrus Logic reported that third-quarter revenue fell nearly 8% to $482.7 million, well below views for $532 million. Adjusted earnings dropped 15% to $1.59 per share, missing estimates for $1.77. Cirrus Logic also gave weak revenue guidance for the current quarter.

Cirrus Logic shares fell 11% in late trading. The stock tumbled 4% in the regular session to 44.89, its worst level since July 2016.

Skyworks Solutions

Skyworks earned $2 a share in the fiscal first quarter, up 12% vs. a year earlier, beating the estimate for $1.91. Revenue rose 15% to $1.05 billion. Skyworks guided lower for the current quarter, predicting EPS of $1.60 and revenue of about $910 million. Analysts had seen EPS of $1.63 and sales of $946.1 million.

But that bad news may be priced into the stock, following weak guidance from Qorvo (QRVO), Qualcomm (QCOM) and Apple (AAPL) itself last week.

Skyworks also announced a $1 billion stock-buyback program, equal to 5.8% of the float based on the current $17.34 billion market cap.

Skyworks shares rose 1.1% in late trading.

But that follows a 4.3% tumble to 94.68 during the regular session, the lowest since Dec. 26. The stock is stuck below its 50-day and 200-day moving averages.


Apple closed down 2.5% to 156.49 on Monday, falling below its 200-day moving average for the first time since 2016 after triggering several signals in recent weeks.


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