Stock Futures Weaken; Mattel Spikes, 11.11 Sales Lift China Names

Stock Futures Weaken; Mattel Spikes, 11.11 Sales Lift China Names

Stock futures dipped into the red Monday, feeling some drawdown from trade in Europe and Japan, despite positive early earnings and company news.

[ibd-display-video id=2368044 width=50 float=left autostart=true]Futures for the Dow Jones industrial average, the Nasdaq 100 and the S&P 500 all lagged 0.3% below fair value. Small caps outpaced the early losses, with Russell 2000 futures down 0.5%.

The week’s economic news gets a slow start Monday, and the pace of quarterly earnings reports slows to a crawl. The GOP tax reform bill will be a focal point for the markets, with leaders in the House pushing for a vote sometime Thursday. No vote is yet planned on a separate reform bill underway in the Senate.

General Electric ( GE ) took an early bounce, up 1.3% to lead the Dow. The company announced it would halve its quarterly dividend to 12 cents, amid plans by Chief Executive John Flannery to concentrate the diversified leader’s efforts around its aviation, power and health-care businesses. Restructuring is also expected across the company’s corporate and management offices. Flannery had been conducting a strategic review since taking his post on Aug. 1.

Apple ( AAPL ) slumped 0.4% in premarket trade. The iPhone maker issued $7 billion in debt, proceeds of which the company typically uses to pay shareholder dividends and fund share buybacks. Shares are extended above a 160.97 buy point in a cup-with-handle base.

Mattel ( MAT ) spiked 23% ahead of the open. News reports late Friday said larger competitor Hasbro ( HAS ) had made an offer for the company . Hasbro shares climbed 4%. Mattel shares ended Friday down 58% from an April 2016 high.

Meat producer Tyson Foods ( TSN ) muscled up 3% after reporting a strong fiscal fourth-quarter performance, lifting its full-year revenue guidance above consensus targets and hiking its dividend 33%. The stock has been working to gain ground above a 72.32 buy point, in a handle formed on a 14-month base .

Aecom (ACM), a heavyweight name in infrastructure construction, delivered fiscal fourth-quarter results above analysts targets, but its full-year 2018 earnings guidance was weaker than expected. Aecom is trading below a 37.35 buy point in a cup-with-handle base.

Several China-based names were in early motion on Monday, after strong early results from the 11.11 Global Shopping Festiva l launched by Alibaba Holding Group (BABA) in 2009.

Four-week old Qudian (QD) perked up 6% in premarket trade, following its first report as a publicly-traded company.  The wildly volatile new issue, a China-based provider of credit and small cash loans, on Friday traded 22% below its high, and almost 15% above its Oct. 18 IPO price.

Internet retail powerhouse (JD) swung 3% higher as investors pored over its third-quarter report. Shares ended Friday in a test of resistance at their 10-week moving average, below a 46.03 buy point in a possible double-bottom base .

Alibaba shares traded up 0.4% early Monday, after ending Friday slightly extended above a 177.10 buy point in an ascending base .

Among biotechs, Nektar Therapeutics (NKTR) vaulted 26% higher after announcing positive results from a phase 1 and 2 study of drugs from Nektar and Bristol-Myers Squibb (BMY) combined into a m elanoma treatment. Nektar ended Friday up 37% for the week, and extended above a 24.98 buy point in a cup base buy point. Bristol-Myers shares traded 1% higher in premarket trades on Monday.

China’s markets advanced on Monday, but profit taking was again in evidence in Japan, where Tokyo’s Nikkei 225 dropped 1.3%. Last week, the index managed to post a ninth straight weekly advance, but only after reversing off a high in a wildly volatile session on Thursday. The index has gained 17.8% since early September.

Europe’s markets lost ground in afternoon trade, with London’s FTSE 100 down 0.3%, while Frankfurt’s DAX dropped 1% and the CAC-40 in Paris stumbled 1.1%.


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