Futures for the Dow industrials ticked up 0.2% above fair value. Nasdaq 100 and S&P 500 futures traded 0.3% higher. Small cap stocks traded in line with the general action, sending Russell 2000 futures up 0.2%.
A week of seesaw trade sends the Dow Jones industrial average and the S&P 500 into Friday’s session each down 1.1% so far for the week, and below their 50-day moving averages. The Nasdaq also starts down 1.1%, but is still holding comfortably above its 50-day line. The Nasdaq ended Thursday 1.9% below the its new high set on Tuesday. The S&P 500 is down 1.7% from Tuesday’s high. The Dow ended the session 2.4% below its high, set on March 1.
Early Risers: Deere, Caterpillar, Nvidia, Autodesk
Caterpillar rumbled up 1.8% to top the Dow industrials, which were almost unanimously positive in the early going.
Deere bolted 9% higher before the open. The construction and landscaping equipment maker reported a 37% rise in fiscal second-quarter earnings, blowing out estimates for an 8% gain. Revenue rose 2% in line with expectations, and management lifted its Q3 revenue guidance above consensus views. Deere shares have been hovering for weeks in buy range just above a 112.28 flat base buy point.
Design software maker AutoDesk (ADSK) rocketed 10% higher in premarket trade, receiving upgrades from RBC Capital and Bank of America following a solid first-quarter performance reported late Thursday. The stock ended Thursday’s session 7% above an 89.28 buy point in a flat base.
Applied Materials (AMAT) swung almost 3% higher after reporting an across-the-board sales and earnings beat in its fiscal second-quarter report late Thursday. The stock is working on its fifth straight weekly advance since rebounding from support at its 10-week moving average in April.
IBD 50 stock Nvidia (NVDA) popped more than 2% after Bernstein initiated coverage on the stock with an outperform rating and a 165 price target. Nvidia shares on Thursday closed 10% above a 121.02 buy point in a late-stage base.
Salesforce.com (CRM) tacked on 2% before the open. The cloud-based human resources management leader reported late Thursday a 16% earnings increase and a 25% revenue gain in its first quarter, both above analyst expectations. Shares are trading near highs, after narrowly clearing an 18-month consolidation.
Oil Tests $50 Ahead Of Data; European Stocks Rebound
Markets will have an eye on oil prices, which were trading higher with West Texas Intermediate up 0.9% in early action — testing the $50 per barrel mark ahead of the Baker Hughes (BHI) weekly rig count report, due out at 1 p.m. ET.
James Bullard, President of the St. Louis Federal Reserve Bank, speaks at 9:15 a.m. ET.
Overseas, markets in Europe stepped off healthy gains near midday as they recovered from a sharp sell off on Thursday. London’s FTSE 100 and Paris’ CAC-40 each added 0.4%. Frankfurt’s DAX held a 0.1% gain.