Dow Jones futures were almost flat late Wednesday, along with S&P 500 futures and Nasdaq futures. President Donald Trump said a trade agreement in China "is moving fast." Cisco Systems (CSCO) reported on profits. Walt Disney (DIS) remained active after rising on Disney + news. Walmart (WMT), Nvidia (NVDA), and Applied Materials (AMAT) reported earnings on Thursday.
The Cisco share fell 5.1% overnight as weak guidance for the current quarter offset slim financial earnings in the first quarter. The Cisco share was already at its lowest during 2019, but the network giant Dow Jones is a wave block for the company's tech spending.
The Disney stock continued to trade strongly overnight, dipping 0.3%. Shares shot up 7.3% Wednesday to 148.72, rising further by two buy points and hitting a record high. Disney said Disney + has more than 10 million sign-ups already.
The Walmart stock climbed 0.8% overnight after rising 1.3% to 120.98 on Wednesday, hitting a record high. The shares have now expanded slightly from an early September outbreak. But the Walmart stock rebounded bullish from its 10-week line, while emptying a three-week tight pattern with a 120.81 record. Walmart revenue is before opening.
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Applied Materials and Nvidia revenue is late Thursday. Analysts expect another quarter of declining revenues from Nvidia and Applied Materials, so guidance will be key to the two stocks and the hot chip sector. The Nvidia stock and Applied Materials stock have both expanded from the latest buying points, but the Applied Materials stock is just below its own three-week dense pattern.
The Cisco stock, the Disney stock and the Walmart stock are all Dow Jones components.
Dow Jones Futures Today
Dow Jones futures were consistent with fair value, along with the S&P 500 futures. The Nasdaq 100 futures were about flat. Keep in mind that overnight action in Dow futures, Cisco shares and more does not necessarily translate into actual trading in the next ordinary stock market.
President Trump's positive post-closure China comments came after reports during Wednesday's stock market trading Purchasing is a new disadvantage of concluding a "phase one" China deal. Beijing allegedly claims specific figures for US farm purchases. Questions remain as to whether the US and China will roll back existing tariffs.
Current stock market rally
The current stock market rally erased slim gains in the report on China's trade talks that were halted on farm goods but regularly held close.
The Dow Jones Industrial Average rose 0.3% and hit a new high as Disney shares rose. The S&P 500 index rose 0.1%, while the Nasdaq composite lost a fraction.
Growth rates overestimated, to say the least. Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.4%. IShares Expanded Tech-Software Sector ETF (IGV) climbed 0.3%, while VanEck Vectors Semiconductor ETF (SMH) advanced 0.2%.
Dow Jones today – and the overall stock market – has strengthened sharply since the beginning of October, fueling some of China's trade optimism. Despite some recent concerns about completing a China deal, the big indices continue to record highs. It's encouraging. Of course, if China's trade talks break down and the United States imposes new tariffs, Dow Jones will of course struggle.
If the stock market rally can hold on to its old highs, even if consolidated for a time, it would be bullish.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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