Dow Jones futures rose slightly Friday morning, along with S&P 500 futures and Nasdaq futures, with a crucial inflation report looming large before the open. Costco Wholesale (COST), Oracle (ORCL) and Broadcom (AVGO) headlined key earnings after the close.
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The stock market rally attempt gave up some ground Thursday, with Tesla (TSLA), Lucid stock and other high-octane names leading the retreat.
Costco, Oracle and Broadcom reported earnings after the close.
The Dow Jones held steady with the S&P 500 retreating and Nasdaq selling off, with the latter undercutting its 21-day moving average. The rally attempt continues but needs a follow-through day to confirm the new uptrend. Was Thursday just a pause or a shakeout before a strong year-end rally, or is this the start of something bigger?
Ford Motor (F), Tempur Sealy (TPX), Saia (SAIA), Regeneron Pharmaceuticals (REGN), Pfizer (PFE), Arista Networks (ANET) and Google parent Alphabet (GOOGL) are seven stocks to watch. Several of these names, including Google, Regeneron and ANET stock, have flashed buy signals this week.
Earnings After Hours
Costco earnings beat on better-than-expected same-store sales. COST stock edged higher in extended trade. Shares have pulled back to the 21-day in recent days.
Lululemon Athletica (LULU) earnings topped as the yoga apparel retailer cited a strong start to holiday sales. But Lululemon gave so-so guidance for the current quarter as it forecast weak demand for its Mirror at-home fitness device. LULU stock reversed slightly lower overnight. Shares have trended lower in the past few weeks.
Oracle earnings and revenue topped views late Thursday, with the software giant also setting a $10 billion buyback. ORCL stock soared 10% in extended trade, signaling a move above its 50-day line. Oracle stock is in a base, but had been trending lower since late October.
Broadcom topped EPS views and gave strong guidance. The chip and software giant also announced a $10 billion stock buyback and 14% dividend hike. AVGO stock rose 7% overnight. Broadcom stock is trading near record highs.
Tesla Stock
Tesla stock tumbled 6.1% to 1,003.80, tumbling to just above its 50-day and slightly undercutting its 10-week line. ARK Invest’s Cathie Wood, a longtime cheerleader of Tesla’s self-driving aspirations, told CNBC that she now sees a “50-50 chance” that the EV giant will succeed. Wood remains bullish on TSLA stock.
CEO Elon Musk sold $965 million worth of Tesla stock Thursday, according to SEC filings released after the close. TSLA stock fell slightly early Friday.
Lucid Group (LCID) announced plans for a $1.75 billion convertible debt offering. Lucid stock plunged 18% on Thursdayto 36.52, below its 50-day line. LCID stock is down 23% this week after big losses in the prior two weeks, following a huge run from late October to mid-November.
More broadly, high-octane growth…
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