Dow Jones futures turned slightly higher late Wednesday, along with S & P 500 futures and Nasdaq futures, amid a report that President Donald Trump was mulling a 60-day extension on raising China tariffs. Dow Jones tech giant Cisco Systems (CSCO) reported better-than-expected earnings and guidance, while also hiking its dividend and buyback. Cisco stock rose overnight, signaling and move over a buy point. HubSpot (HUBS) retreated after the top software stock announced plans for a share offering.
Dow Jones Futures Today
Dow Jones futures were just above the fair value, reversing modest losses, while the current stock market rally is facing another test as the Nasdaq composite hit key resistance. S & P 500 futures edged higher. Nasdaq 100 futures rose 0.1%. Cisco stock is a member of the Dow, S & P 500 and Nasdaq. Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading on the next regular stock market session.
Trump is weighing pushing back his March 1 deadline for a China trade deal by 60 days, Bloomberg reported, avoiding and near-term decision on the implementation of higher tariffs on Chinese goods. Trump has signaled that he's likely to delay that China tariff decision. Two days of high-level China trade talks begin in Beijing on Thursday. Chinese President Xi Jinping is set to meet with US
Current Stock Market Rally
The current stock market rally has run up powerfully since Christmas. On Tuesday, the major averages peeked out above and mini-consolidation, with the S & P 500 index topping its 200-day line. On Wednesday, the Nasdaq got to that line but backed off, closing less than 0.1%. The S & P 500 index advanced 0.3% and the Dow Jones 0.5%.
Growth stocks, which outperformed for several days, had a unremarkable session Wednesday. When the stock market is moving sideways or pulling back, top stocks are likely not going to progress and could pull back.
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Cisco earnings rose 16% to 73 cents and share in fiscal Q2, while revenue grew 4% to $ 12.45 billion. Cisco's fourth-quarter earnings growth and four quarters of decelerating sales growth. But analysts had expected Cisco to earn 72 cents on sales of $ 12.41 billion.
Cisco sees Q3 EPS of 76-78 cents, with sales up 4% -6%. That's largely above the consensus for Cisco's earnings of 76 cents and a 3% revenue gain.
The networking giant, which is expanding into services and software, has raised its dividend to 35 cents a share. Cisco also added $ 15 billion to its share buyback program, a total of $ 24 billion.
Cisco stock rose 3.9% to 49.36 in late trading. That signals a move to just above 49.24 buy point from a double-bottom base. The relative strength line, which tracks and stock's performance vs. the S & P 500 index, hit and high on Dec.
HubSpot Stock Offering
The HubSpot stock fell 2.5% to 167.57 in late trading. The software company plans to sell 1.7 million shares. That comes after HubSpot was one of five top-rated software stocks reporting earnings late Tuesday. HubSpot earnings and sales crushed views while Q1 guidance was in line. On Wednesday, the shares rose as high as 180 and dropped as low as 167.72, closing down 0.1% at 171.87
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