Dow Jones futures fell modestly Thursday night, along with S&P 500 futures and Nasdaq futures. The 2019 stock market rally rolled on Thursday, rebounding from solid intraday losses despite a retail rout let by Macy’s (M). Netflix stock rallied late on an analyst upgrade. Activision stock plunged after the video game maker ended a partnership with Bungie and handed over its “Destiny” franchise. Meanwhile, Brazil OK’d the Boeing-Embraer strategic alliance, giving the Dow Jones giant an 80% stake in the commercial aircraft division of Embraer (ERJ).
Netflix (NFLX) is moving toward its 200-day moving average, trying to be the first FANG stock to do so, though Amazon.com (AMZN) is close. Activision Blizzard (ATVI) had been approaching its fast-falling 50-day line. Boeing (BA) reclaimed its 200-day line during Thursday’s session after an analyst upgrade and a report that the Air Force will accept delivery of Boeing’s flawed air tanker plane.
Dow Jones Futures Today
Dow Jones futures fell 0.2% vs. fair value. S&P 500 futures lost 0.3%. Nasdaq 100 futures retreated 0.3%. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
2019 Stock Market Rally Keeps Climbing
The Dow Jones rose 0.5% in Thursday’s stock market trading, rebounding from solid losses intraday. The S&P 500 index advanced 0.45% and the Nasdaq composite 0.4%. The Dow Jones, S&P 500 index and especially the Nasdaq are closing in on their 50-day moving averages.
Late Thursday, UBS analyst Eric Sheridan upgraded Netflix stock to a buy, nudging up its price target to 410 from 400. He cited subscriber growth, content and other positives, especially after several months of underperformance.
Netflix stock rose 2% in late trade to 331.20. That’s just below its 200-day moving average. During Thursday’s session, Netflix rose 1.5% to 324.66. Amazon stock fell a fraction to 1,656.22, hovering just below its 200-day line. Netflix stock, Amazon stock and fellow FANGs have already reclaimed their 50-day lines.
Netflix earnings are due next week.
Activision Blizzard will stop working with video game developer Bungie, ending a partnership going back to 2010. Bungie will get full control over the popular “Destiny” franchise.
Activision stock fell 6.5% late. While shares rebounded since Christmas, they closed Thursday down 39% from their Oct. 1 peak.
Boeing-Embraer Deal OK’d
Brazil approved a Boeing-Embraer joint venture of the Brazilian firm’s commercial aircraft division. Boeing will pay Embraer $4.2 billion for an 80% stake.
Embraer stock rose 5.5% late. Boeing stock rose a fraction. In Thursday’s session, shares of the Dow Jones aerospace giant rallied 2.55% to 352.61, regaining their 200-day line after moving above their 50-day line on Tuesday. The relative strength line, which tracks a stock’s performance vs. the S&P 500 index, hit a new high Thursday.
Boeing stock rallied Thursday after Morgan Stanley upgraded it to overweight with a 450 price target. In another positive headline, the Pentagon reportedly has accepted Boeing’s flawed air tanker.
Earlier in the week, investors learned Boeing jet orders topped those of archrival Airbus (EADSY).
Boeing stock is working on a 394.38 consolidation buy point.
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