These two ‘siren’ Dow components are set to report earnings over the next two weeks and could determine the direction of the tape, according to these market watchers.<\/b>
\nBoeing failed to turn the market on Wednesday.
The industry leader reported an earnings beat and rallied more than 1 percent, but it couldn’t keep the rest of the Dow afloat.
The next Dow components to report earnings could have more influence as \u00ab\u00a0siren stocks,\u00a0\u00bb names that wield greater control over the direction of the tape, according to Piper Jaffray’s Craig Johnson and Susquehanna’s Stacey Gilbert .
Dow stock Intel is at a critical technical inflection point and its next move could either rally or weigh on markets, says Johnson, chief market technician at Piper Jaffray.
\u00ab\u00a0Intel has already broken below its 40-week moving average, and now it’s coming back to retest the uptrend support line off the ’15 lows. That’s going to be a critical support line,\u00a0\u00bb he said on CNBC’s \u00a0\u00bb Trading Nation \u00a0\u00bb on Tuesday.
Intel is still a roughly 9 percent drop to that trendline that stretches back to the 2015 lows.
\u00ab\u00a0I would think that the stock would perhaps come in further and retest that line before it starts to move higher,\u00a0\u00bb added Johnson.
Gilbert, market strategist at Susquehanna, says Intel’s earnings call could be more influential than its report.
\u00ab\u00a0Their actual numbers aren’t going to be as important,\u00a0\u00bb Gilbert told \u00ab\u00a0Trading Nation\u00a0\u00bb on Tuesday. \u00ab\u00a0I think the commentary around 10nm [chips] and more importantly competition is going to be incredibly important.\u00a0\u00bb
Gilbert says the options market implies a 5.5 to 6 percent implied move on earnings.
Intel is scheduled to report after the bell Thursday.
Apple will also likely drive market direction when it reports on Nov. 1.
\u00ab\u00a0Apple, obviously being one of the largest stocks \u2014 the largest stock \u2014 in the marketplace at this point in time, hasn’t broken its uptrend support line, hasn’t broken below its 40-week moving average. This has kind of been the ballast, as I look at the big stocks out there in the marketplace,\u00a0\u00bb said Johnson.
The tech leader is the best performer on the Dow in the year to date. While the Dow has fallen 1 percent over the past three months, its shares are up 14 percent.
Other Dow stocks reporting this week include Visa and Microsoft after the bell Wednesday.<\/p>\n

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