A rally across global stock markets set Tuesday’s early tone, shadowing Monday’s stock market rally in the U.S. that launched the holiday-shortened trading week.
Nasdaq 100 futures scaled up 0.9% on the stock market today, as Apple (AAPL) rose 0.5% and three of four FANG stock tech names rose 0.8% or more. Lam Research (LRCX) posted the index’s strongest early move. The index closed Monday less than 1% below its 50-day moving average.
Futures for both the Dow Jones industrial index and the S&P 500 stepped ahead 0.5%. Both indexes rebounded on Monday from support at their 200-day moving averages, which could potentially act as a bottom to contain the market’s pullback.
U.S. markets rallied hard Monday, after comments from administration officials over the weekend cooled some trade war fears. Monday also brought the first signs of confirmed progress in trade relations since the Trump administration exited negotiations in the Trans-Pacific trade partnership in January 2017, then announced two sets of tariffs in February and March.
Tokyo’s Nikkei 225 led the rebound across global stock markets, spiking 2.7% on Tuesday. The Shanghai Composite popped 1.1% and Hong Kong’s Hang Seng Index advanced 0.8%. In Europe, London’s FTSE 100 was up 1.9% near midday, with Frankfurt’s DAX trading 1.7% higher and the CAC-40 in Paris ahead 1.3%.
Tuesday’s economic news is limited, with the January S&P Case-Shiller Home Price Index due out at 9 a.m. ET. The Conference Board’s March reading on consumer confidence and the Richmond Federal Reserve Bank’s manufacturing index are expected at 10 a.m. Atlanta Federal Reserve Bank President Raphael Bostic is scheduled to speak in Atlanta at 11 a.m. ET.
Alphabet, Apple Trim Gains, Red Hat Spikes, Glaxo Grabs Novartis Unit
Pre-opening trade on the Dow was strong , but volatile, as leadership continued to shift among the three or four blue chips scoring gains of more than 1%. UnitedHealth ran at the head of the pack, up 1.,8% as it trimmed its early gains.
Apple rose 0.5% and was well off its early highs, as the stock sought to hold above its 50-day moving average, which it retook with a 4.8% surge on Monday. The move occurred in comparatively light trade, but reversed a six-day slide and showed the stock finding solid support at its 200-day moving average.
Google parent Alphabet (GOOGL) narrowed its early gain to 0.8%. The stock found support at its 200-day line on Monday, ending the session 12% off its Jan. 29 high.
Software developed Red Hat fired ahead 7.3% to lead both the IBD 50 list and the S&P 500. The Raleigh, N.C.-based outfit reported a 50% EPS gain and a 23% rise in revenue for its fourth quarter, both above analysts’ expectations. First-quarter earnings guidance was below consensus views. Red Hat shares are extended above a flat base.
Chip stocks were active, with Texas Instruments (TXN) up 1.9%, Advanced Micro Devices (AMD) rising 1.1% and IBD 50 name Lam Research climbing 2.2%. Chip equipment maker Lam Research has been struggling to take and hold a 218.58 buy point in a double-bottom base.
Drug giant GlaxoSmithKline swung 4.2% higher, after agreeing to pay $13 billion to buy point Novartis’ (NVS) shares of the companies’ health care joint venture. The move is the biggest so far by Emma Walmsley, Glaxo’s chief executive since March 2017, who replaced 50 of the company’s top managers in her first year. It also positions Glaxo as a player in a rapidly changing healthcare field that has included the launch of Apple clinic healthcare facilities for its employees and a healthcare joint venture between Amazon.com (AMZN), J.P. Morgan (JPM) and Berkshire Hathaway (BRKA). GlaxoSmithKline shares have been in decline since May 2015.
Novartis shares, up 0.6% before the open, have tumbled 16% from a January high.
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