Stock Futures Up, Off Highs: The Upside Of A Stock Market Down Year

Stock futures popped higher early Monday, as the stock market looked to wrap up a tough year on a positive note.


An early surge put (AMZN) ahead of its rising FANG stock peers. Apple (AAPL) and Tesla (TSLA) each jumped more than 1%. Chip stocks traded generally higher, with Advanced Micro Devices (AMD) and Nvidia (NVDA) leading in early action. Trading volume is likely to be light, and stock moves flighty in the inter-holiday session, but Canada Goose (GOOS) and IBD 50 stock Atlassian (TEAM) appeared poised for possible early gains.

Futures for the Dow Jones industrial average traded 0.8% above fair value and well off early highs. Nasdaq 100 and S&P 500 futures had also eased from highs and were up 0.7% apiece.

Walt Disney (DIS), Caterpillar (CAT) and Boeing (BA) led among Dow stocks. Western Digital (WDC) edged out Amazon for the lead on both the Nasdaq 100 and the S&P 500.

The stock market will observe normal operating hours today, with bond markets closing early, at 2 p.m. ET. Bond and stock markets will be closed for the New Year’s holiday on Tuesday.

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Dow Jones 2019: Primed For Rebound?

The three major indexes last week checked a three-week slide. That gave a dash of optimism heading into 2019, but the Dow Jones industrial average remains down 6.7% for the year. The S&P 500 has declined 7%. The Nasdaq is off 4.6%. That puts 2018 on track to be the market’s worst year since the Great Recession sell-off in 2008. Losses that year were much more brutal: down 33.8% for the Dow, minus 38.5% for the S&P 500 and a 40.5% dive for the Nasdaq.

This would also be the Nasdaq’s first annual slip since 2011, when it lost 1.8%. The S&P 500 dipped a fraction that year. The Dow gained 5.5%.

The upside? The market declines in both years were followed by powerful advances across the market. The Nasdaq bounced back from its 2011 slip with a 15.8% gain in 2012. The Dow jumped 7.2% and the S&P 500 scrambled 13.4% higher.

In 2009, the market bottomed and rebounded from the recession’s steep sell-off. Gains that year were 18.8% on the Dow, 23.5% on the S&P 500 and a whopping 43.9% rally on the Nasdaq.

That’s no guarantee the market will rise in 2019. But if does rebound, it is likely to begin with a follow-through day confirming a new uptrend. To keep track of the market’s progress, read the Big Picture.

Stock Futures: Apple, Amazon, Canada Goose

Dow Jones stock Apple climbed 1.1% ahead of the open. A four-month decline has left Apple stock down 7.8% for the year, and feeling for a bottom below its 10- and 40-week moving averages.

Amazon rose 1.9% early Monday. Amazon stock has pulled back 27.9% from a September high, but remains up 26.4% vs. year-end 2017.

Canada Goose winged ahead almost 9% in premarket trade. The high-end outerwear retailer is sitting on a six-week decline, down 42% from its mid-November peak, but up 32.4% for the year and 228% above its March 2017 IPO price.

Atlassian, which has one of the stock market’s best looking charts at the end of 2018, jumped 2.2% Monday. The IBD 50 stock, also on IBD’s Leaderboard roster of elite growth stocks, ended Friday’s session less than 3% below a 89.92 cup-with-handle base buy point.

Some Global Stock Markets Trading; Oil Prices Rise

Exchanges in Shanghai, Tokyo and Frankfurt were closed for year-end holidays Monday. Hong Kong’s Hang Seng index jumped 1.3% Monday, despite data showing China manufacturing slowed to its worst level in three years. The Hang Seng ended down 3.8% in December, and with a 17.3% loss for 2018.

In Europe, London’s FTSE 100 was down 0.1% in afternoon trade, tracking toward a 12% loss for the year. The CAC-40 in Paris had gained 1.1%, down about 10.5% thus far for the year.

Oil prices remain a wild card heading into the New Year. West Texas Intermediate trimmed early gains to 1.5% early Monday, trading at $46 as prices struggled to build a floor in a three-month slide. WTI is down a bit more than 38% from its October high, and 13.8% below year-ago levels.


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These 5 Tech Companies Strut Rising Relative Strength Amid Bear Market

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The post Stock Futures Up, Off Highs: The Upside Of A Stock Market Down Year appeared first on Investor's Business Daily.

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