Advertisements

Follow us on facebook


Stock Market Turns Negative As Amazon Pulls Back From High; Dow Lags

Stock indexes erased opening gains and turned negative, even after strong earnings from Amazon.com (AMZN) triggered a breakout past a buy point at the open.

X

The Nasdaq composite and the S&P 500 fell 0.1%. The Dow was 0.35% lower despite a rally in Intel (INTC) shares. The Russell 2000 dipped 0.1%.

The Dow and S&P 500 remain below the 50-day moving average, but the Nasdaq approached its 50-day average. The PowerShares QQQ Trust (QQQ) ETF came within a penny of its 50-day average before turning back some. Volume was tracking lower compared with the same time Thursday.

Amazon.com shares soared as high as 1638.10, but pulled back to a 4% gain at 1,579. That’s still above 1,568.62 buy point of a cup-with-handle base after a superb earnings report. The stock, a member of IBD Leaderboard, also topped a previous high of 1,617.54. Citigroup and several other firms raised their price targets on Amazon.

Amazon’s revenue of $51 billion topped estimates of $49.9 billion and was up 43% from the year-ago period. Adjusted earnings of $3.27 per share were way above expectations of $1.26. Amazon also said it is raising the annual cost of its Prime memberships to $119, from $99.

Intel also broke out of a base with a 53.88 buy point but soon eased slightly below the entry. The chipmaker late Thursday beat first-quarter sales and earnings expectations and raised its full-year outlook.

Microsoft (MSFT) poked above the 97.34 buy point of a flat base, but retreated back into the base. The technology titan beat quarterly sales and profit views late Thursday.

Regional banks have been streaking higher, and SVB Financial (SIVB) gapped up to a record high, soaring  18% in big volume. The holding company of Silicon Valley Bank broke out past a cup-without-handle base after earnings topped expectations.

Exxon Mobil (XOM) fell more than 3% after the oil giant missed profit expectations. The loss contributed to the Dow’s flagging action. Chevron (CVX), another Dow component, missed sales estimates but the stock climbed 1% in today’s market.

Although earnings are the market’s main focus, there was also good news on the economic front. Gross domestic product climbed to a 2.3% annualized rate in the first quarter, down from a 2.9% increase in the prior quarter. But that still beat forecasts for a 2% rise.

RELATED:

Amazon Stock Jumps As Earnings Slaughter Views, Prime Fee Raised

U.S. GDP Growth Cools To 2.3% In Q1 As Consumer Spending Pace Eases

Stocks Rumble Higher On Earnings, Economic Data, Hope For China Deal

Source link

Advertisements

No comments.

Leave a Reply