Disclosure NewswireTMiCrowdNewswire - Jul 31, 2017
NEW YORK —
U.S. equities hit all-time highs during Thursday’s trading session, but the major benchmarks gave up their gains in the afternoon and closed lower. The S&P 500 Index slipped 0.1 percent to 2,475.43 on Thursday and the Nasdaq Composite closed 0.63 percent lower to 6,382.19, while the Dow Jones Industrial Average gained 86.94 points to 21,797.95. Recent strong earnings results from technology companies sent the Nasdaq index to record highs before Thursday’s decline. The tech-heavy Nasdaq is one of the best-performing indexes this year. The composite index gained 18.53 percent year-to-date, outperforming the S&P 500 and the Dow Jones. Alphabet Inc. (NASDAQ: GOOGL), Advanced Micro Devices, Inc. (NASDAQ: AMD), Facebook, Inc. (NASDAQ: FB), PayPal Holding, Inc. (NASDAQ: PYPL), Amazon.com, Inc. (NASDAQ: AMZN)
Art Hogan, Chief Market Strategist at Wunderlich Securities in New York, said in a Reuters report, “The general sentiment of the market coming into the day was that transportation stocks are telling us something that we’re not paying attention to. You’ve got a general feeling a lot of good news is priced in to this market. That holds with technology. The problem with momentum stocks, once they start heading in a direction they get there violently and that’s what we’re seeing today.”
Alphabet Inc. (NASDAQ: GOOGL) on Monday reported second-quarter financial results that beat analyst estimates. Shares still fell as the company’s profit was hit by a European anti-trust fine as well as weak key metrics. Revenue rose 21 percent to $26.01 billion in the second quarter, compared with $21.5 billion a year earlier. The company accounted the entire $2.7 billion fine during the quarter as it earned $5.01 per share. Wall Street analysts had expected Alphabet to post earnings of 4.49 per share on $25.6 billion in revenue. Cost per click, a metric that calculates how an advertiser pays Google when the ad is clicked, dropped 23 percent from a year ago.
Advanced Micro Devices, Inc. (NASDAQ: AMD), an American chip company, on reported better-than-expected second-quarter earnings and raised its full year guidance, sending its shares up over 8 percent during Tuesday’s after-hours trading session. The company reported a 19 percent increase in revenue to $1.22 billion, compared to analysts’ expectations of $1.16 billion, and beat on EPS by 2 cents. Advanced Micro Devices raised its full year forecast, betting on demand for its graphics chips and Ryzen processors and expecting annual revenue to increase by ‘a mid to high teens percentage’ rather than its previous outlook of low double-digit percentage revenue growth.
Facebook, Inc. (NASDAQ: FB) shares surged to all-time high after the company posted much higher second-quarter profit due to strong growth in its mobile advertising business. Shares of Facebook rose over 5 percent in extended trading on Wednesday. The company said revenue jumped 44.7 percent to $9.32 billion in the second quarter, beating analysts’ estimates of $9.2 billion. Net income was $3.9 billion, or $1.32 a share, compared with $2.3 billion, or 78 cents, a year earlier. Most of the revenue came from mobile advertising sales, which came at $8 billion, higher than analysts’ expectation of $7.68 billion. Facebook now has more bargaining power in its advertising business. The company’s Chief Financial Officer said the average price of an ad rose 24 percent.
PayPal Holding, Inc. (NASDAQ: PYPL) on Wednesday released second quarter earnings that top analysts’ estimates and raised its guidance for the full year. The company announced a revenue growth of 18 percent, up to $3.136 billion and non-GAAP EPS growth of 27 percent. The company now expects full year adjusted earnings per share between $1.80 and $1.84. Dan Schulman, President and CEO of PayPal said, “Our strong results reflect PayPal’s transformation from a single product to a platform company, from a vendor to a strategic partner to both merchants and ecosystem players, and from a checkout option to an increasingly more central way for consumers to manage and move their money.”
Amazon.com, Inc. (NASDAQ: AMZN) reported second quarter financial results that missed analyst expectations. Share value fell sharply as the company reported an EPS of $0.40 which was way below analyst expectations of $1.42. Amazon reported net income of $197 million that was a large decrease from the second quarter results from a year ago of $857 million. Operating income fell 51% to $628 million, compared to second quarter financial results in 2016 of $1.3 billion. “Our teams remain heads-down and focused on customers,” said Jeff Bezos, Amazon Founder and CEO.
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