Futures for the S&P 500 index edged higher late Wednesday after the benchmark S&P 500 edged lower for a fourth straight loss. Apple (AAPL) fell back to the edge of a recent buy range. Meanwhile, Chinese leaders Tencent Holdings (TCEHY), YY (YY) and New Oriental Education & Technology (EDU) found support at their 50-day moving averages. In late trading, Apple chip supplier Broadcom (AVGO) rallied on strong earnings.
X YY and New Oriental Education are both on the elite IBD 50 list. Tencent likely would be if it were U.S.-listed, rather than an over-the-counter stock.
Futures for the S&P 500 index rose 0.2% vs. fair value. Dow futures climbed 0.3%. Nasdaq 100 futures advanced 0.3%.
Apple fell 0.4% to 169.01 in Wednesday’s stock market trading, its fourth straight modest loss and its seventh decline in eight sessions. Apple is now back within the 5% chase zone from a 160.97 buy point, but only just. In fact, if Apple were 1 cent higher the iPhone maker would be extended.
The Apple iPhone chipmaker reported a 32% EPS gain on a 17% revenue rise, modestly topping on both. Broadcom also guided higher on current-quarter sales and raised its dividend.
Broadcom rose 4% to 274.49 in late trading, suggesting that the stock will open slightly extended from a 259.46 buy point. During the regular session, Broadcom fell as low as 254.20, briefly undercutting a 259.46 buy point and its 50-day moving average, but rallied to close up 0.9% at 263.89.
Broadcom is in the midst of a hostile bid for Qualcomm (QCOM), another wirelesss chip giant and Apple supplier.
Tencent fell 0.8% to 47.63 on Wednesday, its 6th straight decline and the ninth loss in 10 sessions. But the messaging and gaming giant rebounded from an intraday low of 46.79 and closed just above its 50-day moving average.
YY rose 0.3% to 100.96, its fourth straight tight close after finding support intraday above its 50-day line. The live-streaming social operator hasn’t closed below that support area since late April.
New Oriental Education & Technology surged 5.2% to 88.88, retaking its 50-day moving average. New Oriental is in a flat base with a 94.73 buy point. Tal Education (TAL), another for-profit Chinese education firm, popped 4.6% as it makes its way back toward its 50-day line.