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Stocks Open To Thin Gains; Seagate Spikes, GE Dives On Downgrades

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Stocks inched up out of the starting gate Monday, with General Electric ( GE ) dragging on the Dow and Seagate Technology ( STX ) surging to the head of the Nasdaq.

[ibd-display-video id=2397779 width=50 float=left autostart=true]On the Dow Jones industrial average and S&P 500, futures strengthened to 0.2% above fair value. Nasdaq 100 futures advanced 0.3%.

With three weeks gone in October, the Dow has gained 4.1% and broken above the 23,000 level - so far its best month since February, when it topped the 22,000 mark. The S&P 500 is up 2.2%, also its best month since February. The Nasdaq has advanced 2.1%, lagging behind its strong pace set in April, May and July.

Seagate Jumps, China Deal Lifts Tesla; Ichor Leads IBD 50

Early earnings reports sent VF Corp ( VFC ) up 6%, Halliburton ( HAL ) down 0.5% and Philips ( PHG ) ahead 1.5% in opening trade.

Seagate Technology jetted up 14% after reporting fiscal first-quarter earnings and revenue slipped less than expected by analysts. The company also announced a quarterly dividend of 63 cents. Seagate shares finished Friday 14% off an August low, as they began up the right side of a six-month consolidation.

Among Dow industrials, DowDuPont (DWDP) took an early lead, up 1.3%. General Electric ( GE ) slumped 2.7% after Morgan Stanley and UBS downgraded GE shares to underweight and neutral, respectively.

Apple (AAPL) ticked up 0.3% and two if four FANG stock tech leaders rose. Netflix (NFLX) dropped 0.7% and Alphabet (GOOGL) shed 0.2%.

Tesla stepped up 1.3% after news reports on Sunday said the electric vehicle maker had reached a deal allowing it to build a wholly owned manufacturing site within Shanghai's free-trade zone. The facility would reportedly be the first by a U.S. automaker in China that is not part Chinese-owned as a joint-venture arrangement.

Tesla shares have been hugging support at their 10-week moving average, after a mid-September breakout attempt failed.

Biotech DBV Technologies (DBVT) collapsed 52% in early trade. The company confirmed earlier news reports that its Viaskin Peanut adhesive patch to treat peanut allergies did not meet lower-threshold endpoints in a phase 3 clinical trial . Peanut allergy rival treatment rival Aimmune Therapeutics (AIMT) bolted 32% higher at Monday's open.

Telecom software leader Broadsoft rose 1.5%, after announcing it would be acquired by Cisco Systems (CSCO) for $1.9 billion, or 55 per share. Investors had sent shares 13% higher in earlier trade, on speculation of a deal. Cisco shares gained 0.3%.

On the IBD 50 list , Ichor Holdings (ICHR) popped 2% in early action. The stock is extended above a double-bottom-with-handle base in late September.

IBD 50 peer Kemet (KEM) added 1% at the open. The gain lifted the maker of capacitors and other electronic components past a 27.45 buy point in a three-weeks tight pattern .

Global Markets Trade Higher; Chicago Activity Index Jumps

Markets in Japan and Europe traded higher. Sunday's elections in Japan left Prime Minister Shinzo Abe with a mandate and a solid parliamentary majority with which to manage the country's ongoing economic reforms. Tokyo's Nikkei 225 bolted 1.1% higher, moving the index to within 5% of the high marked on June 1996.

Europe's markets saw gains recover in afternoon trade, as Spain moved closer to its attempt to impose federal government control over the rebelling Catalonian region, and following two votes in northern regions of Italy to also pursue independence.

The CAC-40 in Paris led the region's benchmarks, up 0.7%.

In U.S. economic news, the Chicago Federal Reserve reported its National Activity Index moved up to 0.17 in September, vs. a -0.37 reading in August. Production-related indicators improved to 0.1, up from -0.33 in August, and total industrial production rose to a 0.3 tally, improved from a 0.7 decline for August.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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