Dow Jones Futures Rise Despite Evergrande Default Warning After Fed Fuels Market Rally – Investor’s Business Daily
Dow Jones futures rose Thursday morning, along with S&P 500 futures and Nasdaq futures, amid solid earnings reports and mixed news on China’s Evergrande. The stock market rally rebounded strongly Wednesday, boosted by Evergrande debt news and a Fed meeting that walked a line between hawkish and dovish statements and hints.
Overnight, China’s central bank injected the most short-term liquidity since late January, helping to soothe Evergrande default fears. That helped lift Dow Jones futures and stocks in Asia. But futures pared gains, somewhat on a Wall Street Journal report that China is telling local governments to prepare for a possible Evergrande default. Evergrande holds some $300 billion in debt, with projects across the country playing a huge role in construction and the economy overall.
Beijing has told Evergrande to focus on finishing existing projects and repaying individual investors, while avoiding a default for now. Evergrande stock jumped in Hong Kong overnight.
Stocks Flashing Buy Signals
On Wednesday, Snap stock extended Tuesday’s move above a trend line entry. Snap (SNAP) is rallying as FB stock loses sight of its 50-day line, with Facebook (FB) warning that Apple (AAPL) iOS ad-tracking changes remain a headwind.
Meanwhile, Nvidia (NVDA), Wells Fargo (WFC), Monolithic Power (MPWR) and Digital Turbine (APPS) also flashed buy signals.
Before the open, Accenture (ACN) narrowly beat EPS views, while revenue was in line. The IT consulting giant also raised guidance, hiked its dividend by 10% and announced a $3 billion buyback.
Accenture stock rose modestly in premarket trade, flashing a possible buy signal as well. ACN stock is trying to rebound from its first test of the 10-week line since a late June breakout.
Also before the open, Darden Restaurants (DRI) reported strong earnings and guidance. DRI stock rose solidly before the open, signaling it’ll clear a long consolidation.
Finally, Salesforce.com (CRM) raised fiscal 2022 guidance and gave a bullish outlook for fiscal 2023. CRM stock rose early Thursday, working on a long cup-with-handle base, but the …….