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These 5 Top S&P 500 Stocks Near Buy Points Have Earnings This Week; Futures – Investor's Business Daily

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With dozens of S&P 500 index companies reporting earnings this week, here are five you don’t want to miss: Netflix (NFLX), Microsoft (MSFT), Apple (AAPL) supplier Skyworks Solutions (SWKS), Bank of America (BAC) and Morgan Stanley (MS). All five are in sound bases and near buy points.

XAutoplay: On | OffNetflix reports Monday, Bank of America Tuesday, Morgan Stanley Wednesday, with Microsoft and Apple supplier Skyworks on Thursday.

Futures for the S&P 500 index were up 0.1% vs. fair value early Monday morning. Dow industrials futures rose 0.15%. Nasdaq 100 futures climbed 0.3%.

Netflix

Netflix climbed 1.8% to 161.12 in Friday stock market trading, closing in on a 166.97 flat-base conventional buy point. However, an aggressive investor could see 160.07 as an alternative buy point that Netflix has crossed Friday.

Ntflix shares rose 1% to 162.70 in premarket trading.


IBD’S TAKE: Buying or holding a stock can be risky heading into an earnings report. Here’s an earnings options strategy that can help you cash in on post-earnings stock gains, while minimizing the risk from a weak quarter.


Netflix’s earnings Monday evening should show a 78% gain to 16 cents a share excluding various items, according to analysts tracked by Zacks Investment Research. Revenue likely climbed 31% to $2.76 billion. But subscriber growth may still be more important than earnings for investors. Netflix projected it would added a net 3.2 million subscribers in Q2, with 2.6 million coming from overseas.

Microsoft

Microsoft crossed a 72.99 flat buy point on Friday but closed at 72.78, up 1.4%. Microsoft has risen for six straight sessions. Microsoft rose 0.4% to 73.08 in premarket action.

Analysts expect the software giant late Thursday to report fiscal fourth-quarter earnings of 71 cents a share, up 3%. Microsoft revenue likely rose 7% to $24.26 billion.

Skyworks

Skyworks Solutions stock has climbed for the last eight sessions, finally retaking its 50-day moving average on Friday. Skyworks is in a short cup base with a potential buy point of 112.21.

Analysts expect a 23.5% EPS gain to $1.42 with revenue climbing 18% to $890 million.

Skyworks is the first Apple iPhone chip supplier to report in the current season, so Thursday night’s results and guidance will offer clues for Apple’s upcoming quarterly report and those of other iPhone chipmakers.

(Apple reports on Aug. 1. Apple’s stock is in a flat base pattern with a 156.75 buy point. Apple has risen for several sessions but closed just below its 50-day line at 149.04.)

Bank of America

Bank of America is in a cup-with-handle base with a potential buy point of 25.21. BofA fell 1.7% to 24.21 on Friday as investors reacted to earnings from JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC). But BofA closed near the upper end half of its daily range. BofA shares rose 0.3%to 24.29 in premarket action.

Bank of America reports on Tuesday. Wall Street expects EPS to jump 19% to 43 cents, with revenue up 7% to $21.915 billion.

Morgan Stanley

Morgan Stanley is in a consolidation with 46.08 buy point from a handle. Morgan Stanley crept past that entry on July 5, but within a couple of days had fallen below it. Morgan Stanley retreated Friday amid the first wave of bank earnings, dropping 0.7% to 45.20.

Morgan Stanley rose 1.1% to 45.68 early Monday.

Morgan Stanley, which reports Wednesday, is expected to report a 1% EPS increase to 76 cents on revenue of $9.283 billion, up 4%.

Overseas Markets

In Asian trading, Japan’s Nikkei was closed for a holiday. Hong Kong’s Hang Seng rose 0.3%. China’s Shanghai composite fell 1.4%. China’s government reported second-quarter GDP rose 6.9% vs. a year earlier, slightly more than expected. June industrial production and retail sales growth accelerated from May and also topped forecasts. The central bank also made big liquidity injection.

In European trading intraday, the U.K.’s FTSE rose 0.5% while Germany’s Dax lost 0.2% and France’s CAC-40 was up 0.1%.

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