Wednesday July 27, 2022: $156.79 +$5.19 +3.42%
Jul 27, 2022 1:00:50 GMT -8
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Post by Dave on Jul 27, 2022 1:00:50 GMT -8
Good morning. This morning we have a nice shade of green in the pre-market at +1.11%, and growing. What mood is Mr. Market in today?
Dow Jones Futures Rise On Google, Microsoft Earnings After Stocks Skid; Fed Rate Hike Looms
Dow Jones Futures Rise On Google, Microsoft Earnings After Stocks Skid; Fed Rate Hike Looms
Dow Jones futures rose Wednesday morning, along with S&P 500 futures and especially Nasdaq futures. Google and Microsoft headlined overnight earnings, with the Federal Reserve meeting announcement looming large Wednesday. The stock market rally continued to slide Tuesday as Walmart (WMT) plunged on an earnings warning while Shopify (SHOP) announced big layoffs as growth disappoints.
Google parent Alphabet (GOOGL) missed on Q2 earnings while Dow Jones giant Microsoft (MSFT) fell short on the top and bottom line, kicking off a big week for tech titans. Meta Platforms (META) is due Wednesday and Apple (AAPL) and Amazon.com (AMZN) on Thursday.
Google rose modestly overnight while Microsoft stock jumped on strong guidance, after both skidded into earnings.
Google parent Alphabet (GOOGL) missed on Q2 earnings while Dow Jones giant Microsoft (MSFT) fell short on the top and bottom line, kicking off a big week for tech titans. Meta Platforms (META) is due Wednesday and Apple (AAPL) and Amazon.com (AMZN) on Thursday.
Google rose modestly overnight while Microsoft stock jumped on strong guidance, after both skidded into earnings.
Fed Meeting
All eyes turn to the Federal Reserve Wednesday afternoon as the two-day Fed meeting concludes with a 2 p.m. ET policy announcement. Markets expect another 75 basis-point Fed rate hike. A big question is what Fed chief Jerome Powell signals for the September Fed meeting and beyond. Markets are fairly split between a half-point move in September or 75 basis points. In November, investors are betting on another 25-50 basis points, but that's about it.
Headline inflation has almost certainly peaked, given the fall in gasoline prices, but price pressures remain high. However, investors expect the Fed to wrap up rate hikes in a few months, in large part because they see a recession that may already be underway.
Microsoft Earnings
Microsoft earnings and revenue both came up short of lowered fiscal Q4 views, with EPS up 3% and revenue 12%.
The Dow tech titan guided low on Q1 2023 revenue growth, but cloud revenue should be strong, with Azure sales up 43%. Microsoft sees double-digit sales growth in the new fiscal 2023.
Microsoft stock popped 4% in overnight trade after initially retreating modestly. Shares fell 2.7% on Tuesday to 251.90, falling noticeably from its 50-day line on a rough day for software.
All eyes turn to the Federal Reserve Wednesday afternoon as the two-day Fed meeting concludes with a 2 p.m. ET policy announcement. Markets expect another 75 basis-point Fed rate hike. A big question is what Fed chief Jerome Powell signals for the September Fed meeting and beyond. Markets are fairly split between a half-point move in September or 75 basis points. In November, investors are betting on another 25-50 basis points, but that's about it.
Headline inflation has almost certainly peaked, given the fall in gasoline prices, but price pressures remain high. However, investors expect the Fed to wrap up rate hikes in a few months, in large part because they see a recession that may already be underway.
Microsoft Earnings
Microsoft earnings and revenue both came up short of lowered fiscal Q4 views, with EPS up 3% and revenue 12%.
The Dow tech titan guided low on Q1 2023 revenue growth, but cloud revenue should be strong, with Azure sales up 43%. Microsoft sees double-digit sales growth in the new fiscal 2023.
Microsoft stock popped 4% in overnight trade after initially retreating modestly. Shares fell 2.7% on Tuesday to 251.90, falling noticeably from its 50-day line on a rough day for software.