Stock futures rolled sharply higher Tuesday, as efforts to beat deadlines for China tariffs and a government shutdown stirred optimism, and as the Dow Jones index dug in to hold above 25,000.

Chegg (CHGG), Mimecast (MIME) and RingCentral (RNG) all swept higher on earnings news. Under Armour (UAA) also gained following its fourth-quarter report. Shopify (SHOP), Veeco Instruments (VECO) and marijuana stock Aurora Cannabis (ACB) notched earnings-related losses.

Video gaming stocks were active. Electronic Arts (EA) spiked after releasing details for its new Apex Legends game. Take-Two Interactive (TTWO) slipped on an analyst downgrade. Peer Activision Blizzard (ATVI) reports fourth-quarter results after today's close. Among chipmakers, STMicroelectronics (STM) jumped in early trade and Xilinx (XLNX) appeared set to add to its recent advance.

Fragrance icon Coty (COTY) soared 17%, on a bid from a German private investment firm to take a 60% stake in the company.

Nasdaq 100 stock futures led the early gains with a 0.8% advance. Futures for the Dow Jones index and S&P 500 climbed 0.7%

Electronic Arts led the Nasdaq 100. JPMorgan (JPM) and Caterpillar (CAT) paced the early gains on the Dow Jones index, up about 1% each. Cisco Systems (CSCO) dropped to the bottom of the Dow on an analyst downgrade.

Coty jetted to the top of the S&P 500. Molson Coors Brewing (TAP) fell furthest among S&P 500 stocks, down almost 7% on mixed fourth-quarter results.

The Dow Jones industrials backed off Monday, ending still above 25,000 and just even with its 200-day moving average. The Nasdaq and S&P 500 are pulled back after meeting resistance at their 200-day lines last week.

The market's uptrend has been behaving well, with indexes carrying very few distribution days — an indicator of institutional selling. The Dow and the Nasdaq are both fighting for an eighth-straight weekly gain.

A tentative pact between Democrat and GOP lawmakers — hashed out in appropriations committees in the Senate and House and approved by House Speaker Nancy Pelosi — raises some hope of a budget deal that would avert a second federal government shutdown.

The deal met with resistance on both the Republican and Democrat sides, and it was uncertain whether it had the backing of President Trump. House Appropriations Committee Chairwoman Nita Lowey, D-N.Y., said she hoped to have a formal proposal on the table by Wednesday. Federal offices and operations will shut down if a deal is not reached by midnight Friday.

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are in Beijing, set to meet with a team led by Chinese Vice Premier Liu He. Tariffs are set to increase from 10% to 25% on imported China-made goods valued at $200 billion per year if an agreement is not hashed out by March 1.

U.K. Prime Minister Theresa May, expected to brief Parliament today on progress toward a Brexit plan, planned to ask for an extension before a scheduled vote Thursday. May wants two more weeks in order to work through details. There is a possibility that the Labour party opposition could commandeer oversight of the Brexit plan design in Thursday's vote. Britain faces a March 29 deadline for its exit from the European Union.

RingCentral stock perked up 4% in premarket trade. The software developer reported fourth-quarter earnings and revenue above analysts' estimates, and raised its first-quarter and full-year revenue guidance to above the consensus target. RingCentral stock is extended after a breakout from a cup-with-handle base in early January. RingCentral stock has a best-possible 99 IBD Composite Rating.

Mimecast bolted more than 10% higher after reporting a solid fiscal third-quarter win. A 200% earnings gain and a 30% rise in revenue topped expectations. Management put its fourth-quarter revenue guidance well above analyst targets. The stock ended Tuesday 9% below a 46.92 buy point in an eight-month cup base. Mimecast has a 97 Composite Rating.

Textbook publisher Chegg punched up almost 10%, as its fourth-quarter earnings surged a better-than-expected 67% and revenue swung 30% higher. The stock ended just beyond buy range, after clearing a 32.92 cup-base buy point in January. Chegg's Composite Rating is a 96.

By: DocMemory
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