Breaking News: Collective Surge in the US Market and Gold… and Major Tech Giants’ Profit Announcements
Today’s trading in the US market was marked by calm anticipation for tomorrow, a crucial day with the release of the Federal Reserve’s announcement. Eyes were also on the earnings reports of tech giants Alphabet and Microsoft, which were released immediately after market close.
Google’s Strong Rally Following Better-than-Expected Earnings
Google’s (NASDAQ:GOOG) stock managed to close with a 0.75% increase at $122.79 before surging strongly in after-hours trading following a highly positive earnings report. The stock soared to $130.6, a 6.45% increase, continuing its upward trajectory.
Google’s earnings per share stood at $1.44, surpassing expectations set at $1.34. Additionally, the company’s profits amounted to $74.6 billion, exceeding Wall Street’s predictions of $72.82 billion.
A Look at Microsoft’s Earnings
On the other hand, despite Microsoft’s (NASDAQ:MSFT) stock rising by 1.7% in today’s trading to close at $350.98, it dipped in after-hours trading after announcing earnings that didn’t please investors.
The stock fell by 1.76% to $344.48 in after-hours trading, despite reporting earnings per share of $2.69, higher than Wall Street’s expectations of $2.55. The company’s profits reached $56.2 billion, surpassing Wall Street’s expert predictions of $55.44 billion.
Cloud Smart Sector of Microsoft contributed $23.99 billion to revenues, a 15% increase and above StreetAccount analysts’ estimates of $23.79 billion. This unit includes Azure public cloud, SQL Server, Windows Server, Visual Studio, Nuance, GitHub, and enterprise services.
Azure revenues grew by 26% during the quarter, compared to 27% growth in the previous quarter. Analysts surveyed by CNBC and StreetAccount expected a 25% growth for Azure, which competes with Amazon.
Microsoft’s CEO, Satya Nadella, told employees in May that the company would not raise salaries this year.
Closing Prices… Collective Rise in the US Market
The US market closed with collective gains for major indices. The Nasdaq index rose by 0.61% to 14,144.56, while the S&P 500 rose by 0.29%, and the Dow Jones moved sideways to close at 35,438.07 with a mere 0.08% increase.
Gold futures closed trading with a 0.21% increase at $1966.35 per ounce, and spot contracts also rose by 0.51% to $1964.87 per ounce.
The US dollar index is currently at 101.025 against a basket of six foreign currencies, down by only 0.05%.
Furthermore, 10-year Treasury yields rose to 3.885% ahead of the Federal Reserve’s decision.
Federal Reserve Holds Two-Day Meetings
Investors will closely listen to what Federal Reserve Chairman Jerome Powell says during his press conference tomorrow to gather clues about the next interest rate move by the Federal Reserve later this year.
Later today, consumer confidence data will be released, followed by reports on second-quarter GDP, initial jobless claims, and the personal consumption expenditure index, a key inflation gauge.
General Electric Raises Earnings Expectations
In other stock movements on Tuesday, shares of General Electric (NYSE:GE) rose by 6% after the company raised its adjusted profit expectations, citing strong demand for aviation parts and services.
Shares of Verizon Communications Inc. (NYSE:VZ) also increased by 0.4% after the giant telecommunications company reported that subscriber numbers in its wireless business exceeded expectations, with more people upgrading their devices.
Earnings Season… Leading the Way
Shares of 3M surged by 4.5% after the company raised its outlook for annual adjusted earnings.