Read Friday’s report from TheStreet’s Rebecca Borison on the three biggest takeaways from Amazon’s strong financial results.
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It was the first correction in four years, and it looked like investors in the USA stock market could be on track for their first annual losses, including dividends, since 2008. The gains put the Standard & Poor’s 500 index back into positive territory for the year following a market swoon in August and September.
Overseas, Germany’s DAX gained 2.9 percent, while France’s CAC 40 rose 2.5 percent Britain’s FTSE 100 climbed 1.1 percent.
The People’s Bank of China slashed its one-year lending rate by a quarter of a percentage point and removed a ceiling banks were forced to pay depositors on Friday, in its latest attempt to bolster its flagging economy.
However, in the short term the markets have been supported by Central Bank action. The consumer products giant posted solid earnings Friday morning. Last week, each company’s earnings report showed that the investments paid off in terms of money and marketshare.
Regarding Google, the specific figures again remained under cloak and dagger, but the company, of course now under the umbrella of parent firm Alphabet, intimated cloud had contributed strong growth. Plenty of Tech sector results are still to come, but the reports from these bellwethers were very impressive and likely sustainable in the coming periods as well. In the S&P 500 numbers, the technology sector, including the companies already mentioned, made a strong contribution to the performance of the overall index with a rise of almost 18%.
“I think what you’re seeing is these companies finally able to address the primary challenges that have been facing the businesses”, said James Cakmak, an analyst at brokerage Monness, Crespi, Hardt & Co in New York. Gold fell $1 to $1,166.10 an ounce, silver rose 13 cents to $15.84 an ounce and copper gained 2 cents to $2.38 a pound. Analysts were expecting a more modest, but still huge, 21% revenue pop. CEO Jeff Bezos also forecast sales to improve by as much as 25% in the fourth quarter, translating into a billion haul. Microsoft also rallied more than 7 percent after reporting a surprise bump in profits and revenues. But despite more than a dozen price cuts in the past year, profitability is surging.
It saw growth in advertising and online gaming while commercial cloud computing revenue soared 70%. But there is still a few reason to cheer. Find out What is happening in the stock market today on zacks.com.
Even amid the most volatile year for United States equities since 2011, professional stock forecasters on Wall Street have held steady in their year-end calls.
The intraday trading high for Mark Zuckerberg’s social network giant was previous $99.73, set just 24 hours prior.
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These factors have instilled confidence in investors. In fact, these can also serve as a natural hedge to currency headwinds and boost its third quarter 2015 results, scheduled to be reported on November 4. The Earnings ESP for this Zacks Rank # 1 stock stands at +5.71%. The stock lost $6.22 to $12.97. The wireless service business model of T-Mobile United States hinges on its “Un-Carrier” value proposition and its strategic marketing efforts makes it stand out in the competitive USA wireless market.
