X Futures for the Dow Jones industrial average, S&P 500 index and Nasdaq 100 rose slightly Thursday morning after the Nasdaq composite recouped some losses Wednesday, led by Apple (AAPL) and surging fiber-optic stocks such as Acacia Communications (ACIA) and Lumentum (LITE).
Futures for the Dow industrials and Nasdaq 100 rose 0.1% while S&P 500 futures climbed about 0.2%.
During Wednesday's trading the Nasdaq composite rose 0.5% after tumbling 1.5% on Tuesday, its worst loss in months. The S&P 500 index edged up 0.2%, but the Dow Jones industrial average closed a few points lower. Despite gains from Dow techs Apple, Microsoft (MSFT), Cisco Systems (CSCO) and Intel (INTC), the blue-chip index couldn't overcome a 7% plunge in Nike (NKE).
Concerns that an ObamaCare replacement bill defeat could derail President Trump's tax cut efforts are what triggered Tuesday's market sell-off. The House is set to vote on an the legislation Thursday, with the outcome very much in doubt. Despite Wall Street fears, it's possible that a quick Ryancare setback could speed up tax reform.
Apple rose 1.1% to 141.42 on the stock market today. Apple retook a 141.12 buy point in a three-weeks-tight pattern. The three-weeks-tight is a bullish pattern that can provide a secondary buy area.
IBD'S TAKE: Leaderboard is IBD's premium service highlighting annotated charts of a select group of stocks, mostly top-rated stocks in or near buy range. Lumentum isn't on Leaderboard, but it is one of several stocks on its watch list.
Optical stocks were the big winners Wednesday, with IBD's Telecom-Fiber Optic group surging 4.9%, easily the day's best performer out of 197 industries that IBD tracks. The group is also No. 1 in the past five days, up 7.5%. It's the only group in the top 50 that has risen 1% or more over that stretch.
Acacia Communications surged 10.1% on Wednesday. Acacia, the top-performing IPO of 2016, retook its 50-day moving average. That's proven to be a resistance area since early October, with only a couple of brief forays over that line since then.
Applied Optoelectronics (AAOI) 9.2% to 52.63, continuing its powerful run. Applied Optoelectronics has surged 125% so far in 2017. It hit a record high of 56.14 on March 7.
Lumentum leapt 6.2% to 51.45. Stifel raised its price target to 57 from 53, citing discussions with company execs at the Optical Networking and Communication Conference & Exhibition in Los Angeles. He cited upsides such as China demand, Lumentum's partnership with industry giant Ciena (CIEN) and 3D sensing opportunities. Various analysts have tied Lumentum to possible new 3D sensing features in the upcoming Apple iPhone 8.
Wednesday presenters at Optical Networking and Communication Conference & Exhibition included Acacia Communications and Ciena in addition to Lumentum. On Thursday, Finisar (FNSR) and Juniper Networks (JNPR) are on tap.
Optical stocks have had an up-and-down month, with Finisar and Ciena both reporting weaker-than-expected earnings and revenue, sending both stocks sharply lower. On Wednesday, Finisar 2% and Ciena 1%.
Optical stocks aren't offering attractive entry points currently. Lumentum has been consolidating for about four weeks, still too short.
Inphi (IPHI), technically in the fabless chip group but definitely an optical play, also is working on a possible cup base. Shares rose 2.15% on Wednesday, a little below their 50-day line.
Asian Markets
In Thursday intraday trading, stocks rose modestly in Japan, China, Hong Kong and most other Asian markets.
RELATED:
Stocks Rebound Meekly; Will These Sectors Save The 'Trump Rally'?
Trump Trade Vs. Reality; This Stock In Buy Zone: Investing Action Plan
Fiber-Optic Play Rises To Join IBD's Sector Leaders List
Apple Debuts Red iPhone 7, Cheaper iPad, New Video App
Apple AirPods Will Be Bigger Deal Than Apple Watch: Analyst
