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The futures on the Dow Jones rose slightly Tuesday night, as well as futures on the S & P 500 index and futures on the Nasdaq. The Dow Jones and other major averages rose on Tuesday, a slight recovery from Monday's massive sell-off following the intensification of China's trade war. Both Apple and Boeing stocks have grown, but like the Dow Jones remain below their 200-day threshold. Meanwhile, Alibaba and Tencent shares report their results before Wednesday's opening. Ali Baba (Baba) and rival Tencent Holdings (TCEHY) will give an insight into the impact of China's trade war on the Chinese economy.
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Dow Jones Futures Today
Dow Jones futures increased 0.2% over fair value. Apple (AAPL) and Boeing (BA) are the two components of Dow Jones. S & P 500 futures were up 0.2% and Nasdaq 100 futures rose 0.2%. Do not forget that day-to-day futures trading on Dow and elsewhere do not necessarily translate into actual trading at the next regular trading session.
Current exchange
The stock market rebounded Tuesday when President Donald Trump made various bullish statements regarding a trade deal with China. This allowed the Dow Jones and other major averages to recover about one-third of Monday's strong sell-off following China's retaliation after Trump's price hike last week. However, the Dow Jones Industrial Average remains well below its 200-day average, while the Nasdaq Composite and the S & P 500 Index are below their 50-day lows.
Apple shares rose 1.6% and Boeing shares rose 1.7%. But these gains follow losses of 5.8% and 4.9%, respectively, in much heavier volumes. Apple shares fell more than 7% under a 197.97 buy point on Monday, making this entry invalid.
Among the best ETFs, the Innovator IBD 50 (FFTY) gained 2.1% and the iShares Expanded Tech-Software (IGV) ETF jumped 2.2%. The VanEck Vectors Semiconductor ETF (SMH) grew 2.6%. The three ETFs are still down for the week.
Correction of the stock market
Monday's sharp drop, along with last week's heavy losses, led to a stock market correction. Although the current stock market correction does not seem ready to repeat the strong sales by the end of 2018, it does mean that investors should oppose the purchase of securities for the time being.
The titles of the trade war in China, for better or for worse, are likely to up and down the stock market, at least in the short term.
Attempt at a stock market rally
One day does not make a stock market rally. Tuesday is the first day of an attempt to resume the stock market correction. Look for continuous earnings and large, bulky sessions on one or more of the major averages. It would be the next day to confirm the rallying attempt.
Gains of Alibaba
Wall Street expects Alibaba 's profit to rise 5 percent to 96 cents a share. Chinese e-commerce titan revenues are expected to jump 35 percent to $ 13.3 billion.
Alibaba's shares tried to escape from a deep cup base with purchase points of 188.18 or 189.89 from April to early May. But after peaking at 195.72 in April, Alibaba 's stock fell when the trade war with China suddenly escalated. Shares fell for six consecutive sessions, hitting a low of 168.78 on Monday Monday.
The Alibaba stock rose 2.8% Tuesday to 174.84, but the buying points are now invalid.
Tencent Earnings
Analysts expect earnings per share of 32 cents per share, up 3%. The revenues of the messaging giant and games are up about 10%, reaching $ 12.8 billion.
The stock of Tencent is working on a purchase point of 51.34 dollars for a cup with handle. Shares have fallen in recent days. Tencent shares, which are listed on the Hong Kong Stock Exchange and are traded over-the-counter in the United States, rose 0.8% to 47.07 on Tuesday. It's still below his 50-day line.
Tencent, the results of Alibaba and the trade war in China
Tencent and Alibaba's earnings growth slowed due to slower growth in the Chinese economy, in part because of the trade war, including tariffs and resulting uncertainty in the economy. investment. Tencent's setbacks also reflect a long suspension of government approval of new mobile games.
Strong earnings and forecasts would be a good sign that the Chinese economy is doing well, which would be optimistic for the global economy. Weak results or prospects suggest that the trade war with China, particularly as it intensifies, could delay a fragile recovery.
Of course, the signs of a strong Chinese economy could give Beijing policy makers the opportunity to stand firm in the trade war with China. A weaker economy could spark the desire to offer concessions in trade negotiations with China.
Chinese specialist in mobile gaming NetEase (NTES) and the giant of the expedition ZTO Express (ZTO) report Wednesday night.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock updates and more.
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