XAutoplay: On | Off Futures for the Dow Jones industrial average, S&P 500 index and Nasdaq 100 edged lower early Tuesday morning after the major averages fell modestly Monday.
Facebook (FB) and Ciena (CIEN) closed just below entry points Monday after trading in buy zones for much of the session. Meanwhile, Apple (AAPL) shares dipped on the first day of its Worldwide Developers Conference. Apple shares typically underperform during WWDC, but that could be just what the chart doctor ordered.
In Monday’s stock market trading, the Nasdaq composite fell 0.2%, while the S&P 500 index and Dow Jones industrial average each dipped 0.1%.
Early Tuesday, futures for the Dow industrials and Nasdaq 100 were a fraction under fair value. S&P 500 futures dipped nearly 0.1% below fair value.
Dow industrials giant Apple unveiled a new HomePod smart speaker at WWDC, along with new Mac computers, the iPad Pro and operating software updates. The HomePod will compete to some degree with the cheaper Amazon (AMZN) Echo as well as Alphabet‘s (GOOGL) Google Home. But Apple stressed its device’s music capabilities.
Apple shares have fallen an average 3.5% during WWDC week. That would be a helpful for Apple’s chart. The stock has been consolidating for about three weeks, but needs to reach five weeks before it could reach the minimum span for a flat base.
Apple hasn’t had a proper base breakout since early January.
As for Alphabet and Amazon, the Google parent rose 0.8% to 1,003.88, topping 1,000 for the first time. Amazon rose 0.5% to 1,011.43 on Monday after clearing the 1,000 level last week.
Facebook rose 2 cents to 153.63 Monday after rising to 154.71 intraday, above a 153.70 entry and an all-time high. The 153.70 entry is members-only. Facebook has been trading tightly. The three-weeks-tight pattern offered an opportunity for existing holders to add a few more shares. But it’s a risky area for investors to make an initial buy.
Ciena fell 2.55% to 26.80 on Monday, dropping just below a 26.94 buy point. Ciena surged nearly 16% Thursday on its latest quarterly earnings report, then rose modestly on Friday.
Ciena’s fiber-optic-gear group is still highly rated, though individual stocks are hit or miss. Lumentum (LITE) is one of the hits. Lumentum dipped 0.9% to 57.80 on Monday, but is still in buy range from a 56.02 cup-base buy point.
Dave & Buster’s
Meanwhile, Dave & Buster’s (PLAY) held above its own entry point. Dave & Buster’s moved above a 67.93 three-weeks-tight pattern last Friday, hitting an all-time high. On Monday, shares fell 0.7% to 68.16.
The arcade and sports bar chain reports earnings late Tuesday. Analysts expect Dave & Buster’s to post 11% earnings growth to 80 cents a share with sales up 15% to $300 million.
In Asian trading Tuesday intraday, Japan’s Nikkei fell 0.6% while China’s Shanghai composite was off 0.1%. Hong Kong’s Hang Seng rose 0.4%. Australia’s S&P/ASX 200 sank 1.4%.