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10:01 am: Utilities stocks are the most ‘overbought’ ever
While the seemingly unstoppable rally has put many growth stocks in overbought condition, it’s surprising that stable utility names have also perhaps gone too high, too fast. The exchange-traded fund tracking the utility sector Utilities Select Sector SPDR Fund (XLU) posted a 10-day winning streak, up 6.7% in that period. The relative strength index for the ETF jumped to a whopping 84.5, the highest level since the fund’s inception in 1999. Any number above 70 is seen as a sign stocks are becoming overbought. Utilities are “one area of the market that rarely (never?) seems to go parabolicIS suddenly acting that way,” said Matt Maley, chief market strategist at Miller Tabak. Li
9:41 am: Intel, Netflix among early winners, but internals weak
Glancing at the market board, Intel is leading the tech sector higher. Apple and Boeing are also among the notable gainers. There are some big pockets of weakness, however. Bank stocks are down again, continuing their rough week as yields fall. Consumer-related stocks are getting hit and energy shares are down as well. The internals don’t appear very strong. Decliners actually outnumber advancers on the NYSE, 1,254 to 1,242.¬†Melloy
9:32 am: Dow jumps more than 100 points at the open
Thanks to American Express for the Dow’s strong open. The 30-stock index gained about 120 points, boosted by a near 4% jump in American Express shares on the back of solid quarterly results. The Nasdaq Composite also hit a new record at the open. Li
9:13 am: Coronavirus-related names stable
As fears of the deadly coronavirus eased after the WHO opted not to declare a public health emergency, many airlines and hotel stocks, which took a hit in previous sessions, were flat in pre-market trading. Shares of Wynn Resorts and Las Vegas Sands were both down just 0.2%, while United Airlines stock was up 0.2%. Gilead Sciences was little changed after the stock jumped 0.8% Thursday after it announced it was assessing whether its experimental Ebola treatment could be used to treat coronavirus infection. Biotech company Inovio Pharmaceuticals continued to surge, up 13% in premarket, after it said it’s in the process of developing a vaccine against the new deadly virus. Inovio jumped 11.6% Thursday Li
9:10 am: Broadcom rises after announcing Apple deal
Shares of Broadcom are up 3.4% in premarket trading after announcing a pair of agreements with Apple that the chipmaker estimated would be worth $15 billion. The deals apply to wireless components that will be used in Apple products launched over the next three and a half years, according to a securities filing. Apple comprised 20% of Broadcom’s net revenue in 2019. Pound
9:00 am: How Apple’s rally could be fueled even further
With Apple’s stock up nearly 110% in the past year and earnings expected next week, Bernstein analyst Toni Sacconaghi dove into a historical analysis of past times the stock has outperformed after earnings results. Sacconaghi found that Apple could indeed rally even more if the tech giant revises its revenue forecast upward: “AAPL outperforms 65% – 80% of the time when revenue revisions are positive which we think is likely.” Sheetz
8:53 am: Yield curve tightening is back
The yield curve has been off the market’s radar since the inversion ended in early October, but the spread has quietly narrowed in recent days. Peter Boockvar, chief investment officer at Bleakley Advisory Group, points out the 18 basis-point difference between the 3-month and 10-year yields is the narrowest since Dec. 3. An inverted curve, such as what prevailed from May 24 to Oct. 11, has been a reliable recession indicator over time.Cox
8:46 am: Intel jumps on earnings, boosting chipmakers
Semiconductor stock Intel is up about 5% in premarket trading on quarterly results that beat analyst expectations. The company reported revenue above $20 billion for the first time, pushing Intel’s stock to its highest level since the dot-com bubble in 2000. Chip stocks Nvidia rose 1.3%, AMD gained 1% and Micron advanced 1.5%. Fitzgerald
8:40 am: Oil on pace for weekly decline of more than 5%
Oil is in the red again today, on pace for its fourth straight negative session. For the shortened week U.S. West Texas Intermediate crude is down roughly 5.7%, which would be the third consecutive week of declines. The coronavirus outbreak, and a potential slowdown in air travel and therefore jet fuel demand, has weighed on prices. 26 people have now died from the virus, according to China’s National Health Commission. 830 cases have been reported in China, with the virus also spreading to South Korea, Japan, Thailand, Vietnam and the United States, among other places. Most estimates for the potential economic consequences have used the SARS outbreak as a reference case. Some are now saying these estimates might be extreme. Citi’s Eric Lee said in a note to clients that when it comes to oil, at least, the virus hit looks “short-lived,” and the sell-off looks “overdone, even for a market that increasingly shrugs off geopolitical risk.” Stevens
8:36 am: American Express climbs after earnings beat
Shares of American Express are up more than 2% in premarket trading after the payments company beat estimates on the top and bottom lines for the fourth quarter. The company reported $2.03 in adjusted earnings per share and $11.365 billion in revenue, while analysts expected $2.01 in earnings per share and $11.36 billion in revenue, according to Refinitiv. The better-than-expected was driven in part by higher-than-expected revenues from card fees. Pound
8:32 am: Stocks set to rise to end the week, led by AmEx and Intel
U.S. stock futures are trading higher to end a choppy week of trading. Dow Jones Industrial Average futures are up about 85 points, indicating a gain of around 95 points at the open. American Express rose more than 2% to lead the gains on the back of better-than-expected earnings. Intel shares also got a boost from strong earnings. But the Dow was still on pace to post its first weekly loss of the year as worries over the deadly coronavirus subdued market sentiment. Those fears started to ease Thursday after the World Health Organization stopped short of declaring the virus spread a worldwide health emergency. Imbert
With reporting from Maggie Fitzgerald, Jeff Cox, Michael Sheetz, Yun Li