How are the US markets doing? Bullish or Bearish?
According to CNBC, the S&P 500 and Nasdaq Composite reached all-time highs on Wednesday,24/7/19, propelled by a rally in chip stocks as investors shook off regulatory concerns facing Big Tech. The broad index rose 0.5% to 3,019.56, a record. The tech-heavy Nasdaq jumped nearly 0.9% to end the day at 8,321.50. About a quarter of S&P 500 companies had reported second-quarter earnings through Wednesday’s open. Of those companies, 78% have posted a better-than-expected profit, according to FactSet data. Companies such as UPS and AT&T also got a boost from strong results. UPS jumped more than 8% after posting earnings and revenue that topped analyst expectations. The company said higher demand for its Next Day Air and Ground services drove its strong results. AT&T, meanwhile, gained 3.6% after the company reported net phone subscriber growth that topped estimates. The telecom giant also raised its 2019 free cash flow guidance.
1 underperforming stock(Boeing)
Boeing Co. shares fell Wednesday after the aerospace and defence company reported a massive quarterly loss and cast doubt on yet another one of its planes as reported by MarketWatch. Boeing said it is still targeting the first delivery of its 777x plane for late 2020, but there is “significant risk to this schedule given engine challenges.” Those challenges are delaying the plane’s first flight until early 2020, Boeing said.Boeing last week also said it expected a $5.6 billion hit in the second-quarter revenue and pretax earnings and increases in production costs. Boeing shares were poised to extend their losing streak for a third straight session, down more than 2%.
How are the Big Tech Companies faring?
According to Electrek, Tesla announced that it made $6,349 billion in revenue and a loss of $1.12 per share (Non-GAAP) – on expectation for revenue and below expectation for earnings. However, it’s a big improvement over Tesla’s previous quarter results of $4.5 billion in revenue and a loss of $4.10 per share. While the loss is bigger than expected, Tesla confirmed that it is still sitting on cash and cash equivalent worth about $5 billion – “the highest level in Tesla’s history.” The market is focusing on the bigger than anticipated loss and Tesla’s stock (TSLA) is trading as much as 10% down in aftermarket trading.
Wall Street kept a close eye on big tech stocks like Facebook, Amazon and Alphabet as they faced mounting regulatory pressure. Facebook and Amazon initially dropped after the Justice Department announced a broad antitrust review of big tech companies. The two stocks recovered to trade slightly higher as mentioned by CNBC. According to MarketWatch, shares of the social-networking behemoth, Facebook, initially rose 4% in the extended session Wednesday after it announced second-quarter results that attested to intense regulatory scrutiny. Shares later dipped to slightly negative territory after hours, following a prediction of “revenue deceleration”. “Now we have a clear path forward,” Chief Executive Mark Zuckerberg said in the conference call with analysts. “We have clear guidance from regulators” on how to proceed with business. This is especially important, he added, because there is general frustration with the tech industry without a regulatory framework in place. Facebook said it has also seen monthly-active users grew 8% to 2.41 billion and its digital-advertising is still growing and this may outweigh the current hurdle(regulations).
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