Dow Jones Futures: Bullish Market Move On Debt-Ceiling Deal Hopes; Walmart Up On Earnings

 



Dow Jones futures were little changed early Thursday, along with S&P 500 futures and Nasdaq futures. Synopsys (SNPS) and Cisco Systems (CSCO) reported late Wednesday with Walmart (WMT). Alibaba (BABA) out before the market open.


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The stock market rally bounced back Wednesday on optimism that President Joe Biden and Congress will reach a deal to raise the debt ceiling.


The Nasdaq hit a fresh 2023 high while the Dow Jones moved back above its 50-day line after reaching a key level.


Several stocks broke out or flashed buy signals Wednesday, including Broadcom (AVGO), ServiceNow (NOW), New Relic (NEWR), Taiwan Semiconductor (TSM), Royal Caribbean (RCL) and Darden Restaurants (DRI). Those reflect areas of market strength: chips, software, travel and restaurants.


Dow Jones Futures Today

Dow Jones futures were just below fair value, with CSCO stock and Walmart both Dow components. S&P 500 futures advanced 0.1% and Nasdaq 100 futures climbed 0.2%.



The 10-year Treasury yield rose 2 basis points to 3.6%.


Crude oil prices edged lower. Copper futures fell 1%.


Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.


Earnings

SNPS stock rose modestly after Synopsys earnings topped and revenue edged past fiscal Q2 views. The chip-and-electronics design software maker also raised guidance. Shares advanced 0.5% to 377.08 in Wednesday's session, slightly extending Tuesday's move above the 50-day line. That would have offered an early entry if it weren't for earnings. Synopsys stock has a 392.89 flat-base buy point. Rival Cadence Design Systems (CDNS) edged up after hours but is below its 50-day line. It's on track to have its own flat base after this week.


CSCO stock fell solidly overnight on weak orders even though Cisco earnings beat fiscal Q3 views and the networking giant slightly raised Q4 guidance. Shares climbed 1.5% on Wednesday to 47.63. Cisco stock has a 52.66 flat-base buy point, but just above the 200-day line and below the 50-day line.


WMT stock rose slightly in premarket trade. Walmart earnings and sales comfortably beat. The Dow Jones discount giant raised full-year guidance, but gave mixed Q2 targets. WMT stock edged down 0.2% to 149.53 on Wednesday, its fourth straight decline. Shares are above a 148.44 double-bottom buy point. Investors may want to focus on a new 154.45 handle entry, just below a record high. Walmart earnings follow Target (TGT) results early Wednesday.


BABA stock climbed modestly after the Chinese e-commerce giant topped EPS views. Alibaba stock rose 2.2% to 90.68 Wednesday, reclaiming its 50-day and 200-day lines.


Debt-Ceiling Talks Optimism

Biden said he was "confident" that "America will not default." The president made those comments just before leaving on a trip to Japan. His Tuesday decision to cut short his Asian trip and return Sunday helped push the stock market to session lows near the close. House Speaker Kevin McCarthy criticized Biden for leaving the country during debt-ceiling talks, but also remained hopeful about a deal to head off an early June default. "I think at the end of the day, we do not have a debt default."


White House and congressional staff continue to work on a debt-limit deal behind the scenes. Wall Street strategists are increasingly confident that political leaders will avoid a destabilizing U.S. default.

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