Two tech behemoths made massive moves today sending the S&P 500 to an all-time closing high.
First, the scoreboard:
- Dow: 15,570.2, +61.0, +0.3%
- S&P 500: 1,759.7, +7.7 +0.4%
- NASDAQ: 3,943.3, +14.4, +0.3%
And now the top stories:
- Today’s market action was really driven by Microsoft and Amazon. Both companies announced Q3 financial results Thursday afternoon that pleased investors.
- Microsoft reported quarterly revenue and earnings that topped expectations. “Upside across key metrics in a difficult quarter for many IT vendors shows MSFT is fundamentally outperforming enterprise IT peers with an on-premise and hybrid cloud enterprise product strategy that is clearly resonating with customers,” said UBS’ Bret Thill.
- Amazon reported that its Q3 revenue climbed 24% year-over-year to $US17.1 billion, beating analysts’ expectations. The company actually booked a net loss of $US0.09 per share. But that had little negative effect. In fact, the stock price surged 9%. Stifel analyst Jordan Rohan raised his price target on the stock to $US400 per share, a level we haven’t heard of since the dotcom bubble.
- U.S. durable goods orders climbed 3.7% in September, beating economists expectation for a 2.3% gain. But this was largely driven by aircraft orders. Orders of nondefense capital goods excluding aircraft (a.k.a. “core capex”) unexpectedly fell 1.1%; economists were looking for a 1.0% gain. “We might have been tempted to slice a little more off the third-quarter GDP forecast, but the 0.9% m/m surge in durable inventories in September suggests that stronger inventory accumulation may make a bigger positive contribution to overall GDP growth than we had previously assumed,” said Capital Economics’ Paul Ashworth.
- The University of Michigan’s final reading of October consumer confidence fell to 73.2 from last month’s reading of 77.5. This was much worse than the 75.0 level expected by economists. “Overall, the decline in confidence makes better sense than the original report which in the event surprised because of the blip higher in the current gauge in the face of the government shutdown,” said Miller Tabak chief economic strategist Andrew Wilkinson. “All said and done the reading should be of no surprise but adds little fresh evidence to play with.”
- Don’t Miss: A Frightening New ‘Shadow Consensus’ Is Emerging On The Future Of The American Economy »
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