Costco Rival Breaking Out, Time To Bite Into Apple Stock?| Investor’s Business

Dow Jones futures rose modestly Thursday morning, along with S&P 500 futures and Nasdaq futures.

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The stock market rally pulled back Wednesday amid key resistance. The major indexes initially pared losses following the release of Fed minutes from the July 27-28 meeting, but faded again by the close.

Apple (AAPL) cleared a trendline entry, with the megacap stock technically actionable ahead of an official breakout.

Chip design firm Synopsys (SNPS) and lagging Dow Jones tech giant Cisco Systems (CSCO) reported late Wednesday. SNPS stock rose slightly and Cisco stock popped in extended action on strong earnings and guidance.

Lithium giant Sociedad Quimica y Minera de Chile (SQM) released mixed results very early Thursday. SQM stock fell in premarket trade.

BJ’s Wholesale (BJ), a rival to Costco Wholesale (COST), beat views before the open. BJ’s stock rose solidly, signaling a move above a buy point Costco is just in a buy zone.

BBBY Stock Tumbles

Meanwhile, newly revived meme stock Bed Bath & Beyond (BBBY) fell more than 10% early Thursday, but well off overnight lows. BBBY stock rose 12% to 23.08 in Wednesday’s session, but closed near session lows after hitting a five-month high of 30 intraday.

Shares jumped 29% in massive volume on Tuesday as GameStop (GME) Chairman Ryan Cohen disclosed he still owns BBBY stock along with significant out-of-the-money options.

But late Wednesday, Cohen disclosed his intention to completely exit BBBY stock.

GME stock, the original meme stock, retreated overnight after falling 4% Wednesday. AMC Entertainment (AMC), another meme stock, fell 14% in the regular session.

Fed Minutes

Federal Reserve policymakers at the late July meeting agreed that further rate hikes are necessary, according to the newly released Fed minutes.

Declining commodity prices, including energy, aren’t enough, according to the Fed minutes, with policymakers stressing that inflation pressures are broad-based. But they also worried about slowing the economy too much.

They didn’t seem concerned that financial conditions eased since the June meeting, including lower Treasury yields and a stock market rally.

All in all, the Fed minutes held no hawkish surprises, slightly easing rate hike expectations.

Still, markets now see a 61.5% chance of a 50-basis-point Fed rate hike on Sept. 21. Earlier Wednesday, before the Fed minutes release, odds were about evenly divided between a half-point move or a third straight 75-basis-point move.

Costco stock is on IBD Leaderboard and SwingTrader. SNPS stock is on IBD Long-Term Leaders. Synopsys and SQM stock are on the IBD 50.

Dow Jones Futures Today

Dow Jones futures rose 0.2% vs. fair value. S&P 500 futures climbed 0.25%. Nasdaq 100 futures advanced 0.3%. CSCO stock is a member of the Dow Jones, S&P 500 and Nasdaq composite.

Crude oil futures rose 1%. Natural gas futures added nearly 2%.

The 10-year Treasury yield fell 4 basis points to 2.85%.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

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