The Dow Jones Industrial Average will try to close out a very-good week on a high note.
S&P 500 futures have advanced 0.1%, while Dow Jones Industrial Average futures have ticked up 24 points, or 0.1%. Nasdaq Composite futures are little changed. All three are trying to close up more than 2% on the week.
It's a quiet day--it took us far less time to round up the news this morning than it often does. The only economic event of note is the release of April's University of Michigan consumer sentiment survey, which is scheduled to be released at 10 a.m. If we're lucky, the buying pressure that evidently returned to the market this week could continue.
But maybe we shouldn't get our hopes up just yet. Yes, the S&P 500 has stopped making lower highs, but that doesn't mean the market is inevitably breaking out. "The initial breakout from a coiled pattern has a high failure rate in the medium-term," writes Sundial Capital's Jason Goepfert. "Similar breakouts from lower highs led to a positive return six months later less than half the time."
If history repeats, we could have more sideways action coming our way.
Earnings & News
Flowserve (FLS) has slumped 7.9% to $44.08 after reporting in-line earnings and offering guidance that skewed below analyst forecasts. "We are encouraged by internal changes taking place within Flowserve, and recognize it will take some time for these improvements to materialize in operating results," writes KeyBanc analyst Jeffrey Hammond. "In the meantime, we maintain our Sector Weight rating."
Noodles & Co. (NDLS) has climbed 5.8% to $8.25 after missing earnings forecasts but beating on sales. Also, there's Zoodles. "NDLS launched zucchini noodles (dubbed'zoodles') nationwide in early May, which management believes will be a "game changer", serving to negate the veto vote (carbs and gluten), drive frequency (healthier) and attract lapsed users," writes SunTrust analyst Jake Bartlett. "The product was extensively tested and the initial response to the national launch last week has been encouraging despite limited media support (a 3 week delay to hone operations)."
Nvidia (NVDA) has fallen 2.4% to $254 despite beating earnings and sales forecasts. "We favor structural growth stocks in this fading-growth part of the cycle, and NVDA is the large cap semi best aligned with this theme," writes SunTrust analyst William Stein. "Crypto vol may send NVDA lower today; we would buy for structural growth in datacenter (that we expect can re-accelerate), gaming, and longer-term growth in automotive."
Symantec (SYMC) has tumbled 27% to $21.40 after offering weaker-than-expected guidance and announcing a probe that might make those numbers irrelevant anyway. "The company's past financial results and current outlook may be subject to change based on the outcome of the investigation," writes Stifel's Gur Talpaz.
Upgrades & Downgrades
Coty (COTY) has fallen 2.1% to $14.20 after getting cut to Hold from Buy at Deutsche Bank.
Kohl's (KSS) has dropped 2.1% to $59.25 after getting cut to Neutral from Outperform at Credit Suisse.
Sarepta Therapeutics (SRPT) has gained 2.1% to $92.20 after getting upgraded to Overweight from Equal Weight at Barclays.
Switch (SWCH) has climbed 3.5% to $15.95 after getting raised to Market Perform from Underperform at Cowen.
Verizon Communications (VZ) has risen 1.6% to $47.95 after getting upgraded to Overweight from Neutral at JPMorgan.