Dow Jones Futures: Don't Catch A Falling Apple; These 4 Stocks Are Moving Late

Dow Jones futures were little changed late Tuesday, along with S&P 500 futures and Nasdaq futures. In Tuesday’s stock market trading, the Dow Jones and other major averages rose, but closed off highs as Apple stock reversed amid doubts about the new Apple streaming service. In late trade, WellCare stock soared on a report that Centene (CNC) is in talks to buy its smaller health insurance peer. Also, Boeing stock edged lower after a Boeing 737 Max had to make an emergency landing. Ollie’s Bargain Outlet (OLLI) tumbled after reporting weak sales and guidance.

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Dow Jones Futures Today

Dow Jones futures fell a fraction vs. fair value. S&P 500 futures edged higher. Nasdaq 100 futures rose about 0.1%. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

The Dow Jones rose 0.55% while the S&P 500 index and Nasdaq composite advanced 0.7%, but all ended well off session highs. Apple’s reversal and the continued inverted yield curve between the three-month and 10-year Treasury weighed on sentiment.

Growth stocks fared well: The Innovator IBD 50 ETF (FFTY) rose 1%.

Don’t Catch A Falling Apple Stock

Apple (AAPL) rose as much as 2.2% intraday Tuesday, but reversed to close down 1%. That extends Monday’s losses amid doubts about the upcoming Apple streaming service. Monday’s Apple streaming service event didn’t offer many details. The Dow Jones tech titan didn’t say how much the Apple streaming service would cost or give a specific launch date.

Apple stock made a nice run in mid-March, but has never offered a proper point. It’s back below its 200-day moving average. Apple stock did rise a fraction late. Maybe Apple stock is done retreating and will make another string of gains, offering an entry point. But investors shouldn’t try to catch a falling knife. They certainly shouldn’t try to catch a falling Apple.

Centene-WellCare Deal?

WellCare Group (WCG) vaulted 12% late on a CNBC report that Centene is in takeover talks. Centene stock fell 1.8% late. WellCare stock and Centene stock both fell nearly 4% in Tuesday’s session as health insurers and related stocks tumbled on the Trump administration decision to join a lawsuit arguing ObamaCare is unconstitutional.

A Centene-WellCare deal would following several big health care mergers, though regulators blocked two M&A deals involving health insurance giants.

Boeing 737 Max Emergency Landing

A Southwest Airlines (LUV)-owned Boeing 737 Max had to make an emergency landing shortly after takeoff from Orlando, Florida. The FAA said the incident wasn’t related to the two deadly Boeing 737 Max crashes that led to a global grounding of those jets. The Southwest Air flight had no passengers; the jet was en route to storage in California’s Mojave Desert.

Boeing stock fell 0.5% late, paring extended-trading losses. Shares closed down 8 cents.

Ollie’s Bargain Outlet Earnings

Ollie’s earnings rose 39% to 71 cents a share in the fourth quarter as revenue grew 10% $393.9 million. Same-store sales increased 5.4%. Ollie’s earnings topped views for 71 cents, but analysts expected revenue of $398 million and 6.3% comps growth.

Ollie’s earnings guidance for the current year was largely below consensus. The sales outlook was light.

Management also announced a $100 million buyback program.

Ollie’s stock fell 1.9% to 80 in late trade. Shares closed up about 1% to 81.56. Ollie’s stock has been forming an awkward cup-with-handle base with a 90.07 buy point, MarketSmith analysis shows. But the base appears deep and the handle is deep, too. A big gap-down in the base also hurts the pattern.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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