|Day's Range||13.02 - 13.02|
Agribusiness-related ETFs brushed off the broader market weakness Friday as Deere & Co’s (NYSE: DE) shares surged to a five-year high on an unexpected jump in quarterly profits. On Friday, the iShares ...
The main U.S. stock indexes fell again in response to a double punch from renewed fear about the coronavirus and discouraging data on the service sector of the economy.
U.S. stocks sold off and the Nasdaq had its worst daily percentage decline in about three weeks on Friday as a spike in new coronavirus cases and data showing a stall in U.S. business activity in February fueled investors' fears about economic growth. Declines were led by the technology sector for a second straight session. Tech-related heavyweights Microsoft Corp , Amazon.com Inc and Apple Inc were the biggest drags on the S&P 500.
Stocks are under pressure on Friday, falling as coronavirus worries continue to weigh on equities and drive up safe-haven plays. That said, here's a look at some top stock trades for next week. Top Stock Trades for Tomorrow No. 1: Slack (WORK) Click to Enlarge Source: Chart courtesy of StockCharts.comSlack (NYSE:WORK) is up more than 2% on the day, despite jumping more than 6% in pre-market trading on reports that Uber (NYSE:UBER) will move all of its employees onto the platform. WORK has had momentum after similar reports of IBM (NYSE:IBM) doing the same thing earlier this month.Slack's rally drew in sellers on Friday, but the stock is still looking better overall. Earlier this month, Slack broke out over the 100-day moving average, then held this mark as support on a pullback.InvestorPlace - Stock Market News, Stock Advice & Trading TipsA few days later, it pushed above the $26 IPO price. Now, investors want to see it hold up above the $26 to $27 area. Above keeps Friday's high of day and $30-plus on the table. * 10 S&P 500 Stocks to Buy Increasing Their Dividends in 2020 Below this area and the 20-day moving average, though, and the 50-day and 100-day moving averages are on the table, with both near $23. Top Stock Trades for Tomorrow No. 2: Gold ETF (GLD) Click to Enlarge Source: Chart courtesy of StockCharts.comThe SPDR Gold Trust ETF (NYSEARCA:GLD) remains red hot, as investors continue the flight-to-safety trade even as equities have done well the last few months.With Friday's gap up, the GLD is hitting new 52-week highs, while sporting an overbought condition on the relative strength index (RSI). The move caps six straight sessions with a gain, as GLD broke out over $150 this week.Just because shares are overbought, doesn't mean the stock can't run higher possibly to $160. However, investors may prefer to wait for a dip. Preferably, a drop down to the $150 breakout mark will be met with support -- a strong sign that bulls are still in control.It would also be attractive to see the 20-day moving average hold as support. Below both measures puts the 50-day moving average on the table. Top Stock Trades for Tomorrow No. 3: Deere (DE) Click to Enlarge Source: Chart courtesy of StockCharts.comShares of Deere (NYSE:DE) are hitting new annual highs on Friday, after surprisingly better-than-expected quarterly results. The stock is pushing through recent resistance near $177, but struggling to hold its gains above this mark.Above resistance puts a move up to $185-plus on the table. However, failure to close over resistance keeps downside levels in the realm of possibilities too.That would first put the 10-week moving average on the table near $172, followed by a slightly deeper dip down to the $161 to $163 area. There, Deere will find the 50-week moving average and uptrend support (blue line).After such a favorable reaction to earnings, I wouldn't normally look for such a pullback. But when considering current resistance along with the possibility of a larger market correction, these downside marks become possible. * 3 Wild Stocks To Wrangle In This Bullish Market Overall, just stay open-minded and flexible. Let price be the guide, not opinion. Top Stock Trades for Tomorrow No. 4: Dropbox (DBX) Click to Enlarge Source: Chart courtesy of StockCharts.comBucking the trend on Friday is Dropbox (NASDAQ:DBX), which is up 23% at one point after reporting earnings.The charts for this one are really interesting. With the move, shares are ripping through the 20-week moving average -- which roughly translates to the 100-day moving average. This measure has been resistance for several months now, stymieing each rally in DBX stock.Furthermore, the stock burst through the 50-week moving average and long-term downtrend resistance (blue line). One measure many investors are surely not considering is the newly established 100-week moving average, which just came into play at $23.76. Guess what Friday's high is so far? DBX came within 4 cents of that mark.On the upside, the 100-week moving average is now the mark to clear for more upside. If it can, $26 is on the table. On the downside, though, see that $20 to $21 holds as support. $21 is the IPO price for Dropbox, while this area also marks the 50-week moving average and backside of prior downtrend resistance.The chart for DBX is my favorite from this week, purely from a technical perspective. However, that doesn't mean it's the best buy or anything like that. Just pure technicals that make it a fun one to study.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 S&P 500 Stocks to Buy Increasing Their Dividends in 2020 * 5 Tech Stocks Vying to Win the AR/VR Race * 7 U.S. Stocks to Buy on Coronavirus Weakness The post 4 Top Stock Trades for Monday: WORK, GLD, DE, DBX appeared first on InvestorPlace.
U.S. stocks sold off on Friday as a spike in new coronavirus cases in China and other countries and as data showing U.S. business activity stalled in February fueled investors' fears about the economy. Declines on Friday were led by heavyweights Microsoft Corp , Amazon.com Inc and Apple Inc for a second straight day. Chipmakers, with strong ties to China for revenue, also fell sharply, with the Philadelphia Semiconductor index falling 3%.
(Bloomberg) -- If there was one dark cloud in Deere & Co.’s otherwise stellar quarterly earnings it was how much the coronavirus outbreak could weigh on the machinery giant’s customers and suppliers in the coming months.Deere surprised investors Friday by delivering profit growth and pointing to green shoots in farmer confidence after two years of being hammered by trade wars and wild weather. Its shares surged the most in three years to a record.But on a call with company executives, analysts asked what was behind the decision not to raise its earnings outlook. One reason for the cautious approach is the deadly virus that’s disrupted trade, transport, labor and industry.The company is working on contingencies to ensure it can get parts to facilities in case the outbreak impacts its suppliers in China, executives said on the call. They flagged a $40 million expense for expedited air freight that will hit in the second quarter. Less of a concern are Deere’s sales in the Asian nation, although road building there has been affected.“Even with the beating of the quarter and a lower tax rate, they do seem to be little bit more cautious partially due to the $40 million,” Ashish Gupta, senior machinery analyst at Stephens Inc., said after the earnings call.While the phase one trade deal between Beijing and Washington has improved farmer confidence, it’s still too early to provide forecasts on China’s agriculture purchases as overall activity has slowed in the Asian country, Deere said.Deere maintained its fiscal 2020 net income guidance, forecasting a range of $2.7 billion to $3.1 billion. That compares with the $2.9 billion average analyst estimate.The company’s cautiously optimistic view on agriculture was supported by government crop projections released Friday. The U.S. Department of Agriculture expects American soybean stockpiles to sink to pre-trade war levels as China comes back into the market.To contact the reporter on this story: Laura Yin in Seattle at email@example.comTo contact the editors responsible for this story: James Attwood at firstname.lastname@example.org, Simon CaseyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
U.S. stock indexes fell on Friday after data showed U.S. business activity stalled in February, while a spike in new coronavirus cases in China and elsewhere sent investors scrambling for safer assets such as gold and government bonds. Declines on Friday were led by heavyweights Microsoft Corp , Amazon.com Inc and Apple Inc for a second straight day.
STOCKSTOWATCHTODAY BLOG Service Down. The three major U.S. stock market indexes fell as investors continued to worry about the coronavirus, and the Markit Services purchasing manager index unexpectedly came in below 50, the dividing line between economic expansion and contraction.
Deere & Co's shares hit an all-time high on Friday after the company reported an unexpected increase in first-quarter profit, but the world's largest farm equipment maker warned the outbreak of coronavirus would hit sales and earnings in the second quarter. Shares surged 9.7% to their highest-ever level of $181.99 in morning trade after Deere said it sees signs of stabilization in the U.S. farm sector, which has been buffeted by a nearly two-year-long trade war with China. A lower tax rate lifted the quarterly profit to $1.63 per share from $1.54 per share last year, topping Refinitiv's average analyst estimate of $1.26 per share.
Deere & Company rallied to the top of its trading range and is still pushing higher Friday as traders and investors liked the company's latest earnings figures. DE beat expected EPS and revenue numbers handily. In the daily bar chart of DE, below, we can see that prices have quickly responded to the fundamental news and have gapped higher.
Deere & Company (NYSE: DE ) far exceeded the Street’s first-quarter expectations. The company's $1.63 bottom line beat $1.26 consensus estimates, while sales of $7.63 billion surpassed forecasts of $6.42 ...
Deere & Co. reported Friday that it saw signs of stabilization in the farm sector in the first quarter of the year. In early Friday trading, shares in Deere were up more than 7 percent, rising more than $12 to around $178.
As fears mounted market participants flocked to the relative safety of U.S. government debt, pushing the yield on the 10-year Treasury note below 1.5% and that of the 30-year bond to an all-time low below 1.92%. DE was up 6% in premarket trading. Meanwhile, there was an uptick in demand for U.S. government debt, which pressured yields; gold prices rose; the Cboe Volatility Index (INDEXCBOE: VXS) moved up; and the U.S. dollar jumped.
(Bloomberg) -- Machinery giant Deere & Co. delivered an unexpected increase in earnings and maintained its annual outlook as early signs of stabilization in the U.S. farm sector offset a slowdown in construction. Shares rose the most in three years.“Farmer confidence, though still subdued, has improved due in part to hopes for a relaxation of trade tensions and higher agricultural exports,” Chief Executive Officer John May said in a statement accompanying its fiscal first quarter results.While the CEO didn’t mention the coronavirus in the statement, his comments may help ease concerns about how much the outbreak will delay China’s return to U.S. agricultural markets as laid out in the phase one trade deal. The tit-for-tat tariff spat with China made American farmers cautious on replacing large equipment, Deere’s top moneymaker.The company’s shares were up 8.1% at 9:37 a.m. in New York, erasing losses earlier this year and heading for the steepest daily advance since November 2016. Investors will be looking for more detail on the company’s prospects for this year in light of coronavirus on a conference call scheduled for 10 a.m. in New York.Deere maintained its fiscal 2020 guidance, forecasting a range of $2.7 billion to $3.1 billion. That compares with the $2.9 billion average analyst estimate.The company’s cautiously optimistic view on agriculture was supported by government crop projections released Friday. The U.S. Department of Agriculture expects American soybean stockpiles to sink to pre-trade war levels as China comes back into the market.Still, fundamentals for American farming remain challenged with increasing competition from South America and the Black Sea region compounded by a strong dollar. Two of Deere’s peers issued disappointing 2020 outlooks. A survey released Thursday indicated that more than half of U.S. farmers said they planned to spend less on capital equipment this year.As Deere reduces production to work through excess inventory and faces weaker demand, Bloomberg Intelligence expects a slow start to fiscal 2020. The company said it’s proceeding with measures to create a more focused organizational structure.Precision Ag“The Coronavirus has driven investors to a defensive positioning in machinery and Deere has been the defensive play,” Stephens analyst Ashish Gupta said in a Feb. 18 report. “The long-term thesis centers around Deere coming out the farm machinery winner due to investments in precision ag and we do not think an F1Q results shortfall is likely to change that.”Deere reported adjusted earnings of $1.63 a share for the quarter, up from $1.54 a year ago. The average analyst estimate was $1.25. The result was helped by a tax benefit. Sales fell 6%, dragged down by lower construction shipment volume and unfavorable currency effects.“We expect a positive stock reaction as we think full-year EPS estimates are likely to move higher,” Citigroup Inc. analysts said.(Updates with shares in first and fourth paragraphs)To contact the reporter on this story: Laura Yin in Seattle at email@example.comTo contact the editors responsible for this story: James Attwood at firstname.lastname@example.org, Lynn ThomassonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Deere (DE) is well poised to benefit from precision technologies and projects net income in the range of $2.7 billion to $3.1 billion for fiscal 2020.
U.S. stocks extended their retreat from records on Friday as investors grappled with heightened fears around the economic damage from COVID-19, which has also lifted expectations for the Federal Reserve to cut rates later this year. The S&P 500 was down 0.3% to 3,362. The Dow Jones Industrial Average fell 105 points, or 0.4%, to 29,114. The Nasdaq Composite retreated 0.4% to 9,712. Equities are struggling amid signs that the impact of COVID-19 could spill beyond China and into neighboring Asian economies. More companies are also speaking of increased disruptions to their individual supply chains as Chinese workers trickle back onto factory floors. The 30-year Treasury bond yield set a new all-time low on Friday, falling to 1.926% at last check, underlining the economic pessimism reflected in the bond market. In company news, shares of Deere surged after its earnings surpassed Wall Street expectations.
Signs that the hard-hit farming sector is regaining traction helped drive Deere's quarterly profit much higher than analysts expected. That offset weak demand for the company's construction machines. The company known for its green tractors was able to boost that operating profit for its farming business by lifting prices and cutting production costs and warranty expenses. Deere's CEO said confidence in the farming sector has improved, now that the U.S. has reached an interim trade deal with China. That has lifted hopes of a recovery in demand for farm machinery. Under that deal, China agreed to buy another $32 billion in U.S. farm products over two years. That would help Deere because the agriculture business makes up nearly 60% of its revenue. Deere is sticking to its full-year earnings forecast that still calls for a sales decline. But investors cheered the results, pushing Deere shares up sharply in early trading Friday.