Stock Futures Lower; JPMorgan Disappoints, 2 Network Plays Dive – Investor's Business Daily

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Stock futures set up for a soft start Thursday, with earnings reports from JPMorgan (JPM) and Citigroup (C) providing a focal point for early action.

XAutoplay: On | OffFutures for the Dow Jones industrial average, the Nasdaq and the S&P 500 traded less than 0.1% below fair value.

The Dow heads into Thursday’s session up 0.5% for the week, with the S&P 500 and Nasdaq up 0.2% apiece. The Dow and the S&P 500 are each angling for their fifth straight weekly advance.

JPMorgan Down On Investment Slip, Citibank Lower

On the Dow, Cisco Systems (CSCO) stumbled 1.4% in early trade and JPMorgan was headed lower, down 0.8% after reporting third quarter sales and earnings comfortably above analysts’ targets. But a 2% drop in investment banking revenue and a 16% diver in markets and investor services revenue spooked investors.

JPMorgan shares ended Wednesday in a buy range, above a flat base buy point at 95.32.

American Express (AXP) was among the few early gainers on the Dow, up 0.2%.

Citigroup dipped 0.5% ahead of its third quarter release, scheduled for 8 a.m. ET.

Apple (AAPL) dipped 0.1% and three of four FANG stocks traded flat to lower. Amazon.com (AMZN) ticked 0.1% higher. The online juggernaut announced plans to add 120,000 employees for the holiday season. The release said thousands of temporary workers were converted to full-time employment after last year’s holiday season, and it expects similar results at the start of 2018.

Amazon shares ended Wednesday back above support at their 10-week moving average, up 7% from a late September low and working to build the right side of a possible three-month base pattern.

Among IBD 50 stocks, Atlassian (TEAM) climbed 0.9% in premarket trade. The specialist in collaboration and team integration software development ended Wednesday in a buy range after topping a 39.35 buy point in a flat base.

Ulta Beauty (ULTA) dropped 3%, to the bottom of the Nasdaq 100 list. Network security provider Juniper Networks (JNPR) tumbled 6%, the S&P 500’s worst decline, after Institnet cut the stock’s rating to neutral, from buy.

Blackhawk Network (HAWK) dived 9% ahead of the open. The credit card payment processor reported mixed third-quarter results, and offered Q4 revenue guidance below consensus views. The move implied an open sharply below the stock’s 10-week moving average, which would send a sell signal. Not all premarket moves hold up after the starting bell.

Nikkei 225 Aces New High; Coming Up: Producer Prices

The Labor Department reports September producer prices and weekly unemployment claims data at 8:30 a.m. The Energy Information Administration delivers weekly natural gas inventories at 10:30 and oil inventories at 11 a.m., and the Treasury Department’s September budget is due out at 2 p.m. All times are ET.

Federal Reserve Board governors Lael Branard and Jerome Powell speak at separate conferences in Washington D.C. at 10:30 a.m. ET.

In Japan, Tokyo’s Nikkei 225 rose 0.4% in a landmark session that lifted the index above its prior high, set in June 2015, to close at its highest mark since July 1996. China markets booked another mixed session with Hong Kong’s Hang Seng index up 0.2%, ending less than 1% from its April 2015 high.

Europe’s markets were mid-way through another mixed session with London’s FTSE 100 up 0.2% and Paris’ CAC-40 down 0.2%.

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