Dow Jones Futures Fall As U.S. Plans China Tech Curbs: These 5 Top Stocks Are Near Buy Points

Dow Jones futures fell modestly Sunday night, along with S&P 500 futures and Nasdaq futures, as President Donald Trump plans a pair of efforts limiting China’s access to U.S. technology. The Dow Jones and other stock market averages retreated last week amid Trump trade war concerns, with many leading growth stocks struggling. Facebook (FB), Alibaba (BABA), ServiceNow (NOW), Veeva Systems (VEEV) and Qualys (QLYS) are all top stocks with rising profit estimates that are in or near buy zones.

Dow Jones Futures Today

Dow Jones futures fell 0.3% vs. fair value. S&P 500 index futures slid 0.4% vs. fair value. Nasdaq 100 futures sank 0.4%. Keep in mind that stock market futures often don’t translate into how the S&P 500 index and other major indexes will trade in the next regular session.

China Trade War Focuses On Technology Transfers

The Trump administration will bar many Chinese companies from investing in key U.S. technologies on national security grounds, according to multiple reports, citing sources. The U.S. government also will restrict U.S. technology exports to China. It’s part of a growing move toward a long-term cold China trade war.

Earlier Sunday, Trump tweeted that he’s “insisting that all countries … remove those Barriers and Tariffs” vs. the U.S. or face serious consequences.

The United States is insisting that all countries that have placed artificial Trade Barriers and Tariffs on goods going into their country, remove those Barriers & Tariffs or be met with more than Reciprocity by the U.S.A. Trade must be fair and no longer a one way street!

— Donald J. Trump (@realDonaldTrump) June 24, 2018

Rising Profit Estimates

Facebook, Alibaba, ServiceNow, Veeva Systems and Qualys are all part of the Rising Profit Estimates list.  Earnings ultimately drive stock prices. A rising EPS consensus signals a company has momentum and Wall Street is catching up to those improving prospects.

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All five top stocks boast a best-possible 99 IBD Composite Rating. The Composite Rating combines several proprietary ratings, includes earnings. All-time stock winners often have a Composite Rating of at least 95 near the start of big runs.

Alibaba stock is on IBD Leaderboard. So is Veeva stock. Alibaba, Veeva and ServiceNow are all on the IBD 50 list.

Facebook stock is slightly extended from the 5% chase zone. So is Veeva stock. But they could pull back into range. Alibaba stock closed Friday in buy range along with ServiceNow and Qualys.

Facebook Stock

The social networking giant continued its three-month rebound, rising nearly 3% last week, even with fractional losses on Thursday and Friday. The relative strength line, which tracks a stock’s performance vs. the S&P 500 index, is at record highs. That’s after not making much progress since last July.

Shares closed at 201.44. That’s 6.9% above the 188.42 handle buy point.

Alibaba Stock

The Chinese e-commerce giant is struggling to hold above a double-bottom buy point of 201.60. Alibaba stock closed at 202.01 on Friday after undercutting the entry intraday. The 200 level also is a key support level. The rising 50-day line also may offer support in the coming weeks.

ServiceNow Stock

The enterprise software maker first cleared a 176.66 flat-base buy point on May 9, but has struggled to stay above it since then. On Friday, ServiceNow stock hit 172.51 intraday, but pared losses to close at 176.70, down 2%. It also closed above its 50-day line.

Veeva Stock

Veeva Systems closed Friday at 82.83, 5.7% above a 78.37 flat-base buy point. That makes Veeva stock slightly extended.

Qualys Stock

The security software maker cleared an 85.10 buy point in strong volume on June 11, and kept rising to 97.75 intraday on June 14. But Qualys stock has pulled back into buy zone after tumbling 6.3% to 88.80 on Friday in above-average volume. It’s in danger of a round-tripping a double-digit gain from the buy point. That’s a strong sell signal.


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