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Friday Positivity - Stocks Set To Open In The Green Following Blowout Earnings From Big Tech Thumbnail

Friday Positivity - Stocks Set To Open In The Green Following Blowout Earnings From Big Tech

Stocks Set to Open In the Green Following Blowout Earnings From Big Tech 

By Yun Li & Fred Imbert (CNBC)

Stocks fell on Friday even after the biggest tech companies and market leaders — Amazon, Apple and Facebook — reported stellar quarterly results.

The Dow Jones Industrial Average fell about 150 points as Caterpillar and Chevron led the declines. The S&P 500 dipped 0.3%. The tech-heavy Nasdaq Composite bucked the trend, climbing about 0.4% as Big Tech shares soared.

“Blowout big tech earnings, a better than expected China PMI and strong German retail sales are doing little to offset the disappointment surrounding fiscal package 4 negotiations,” Dennis DeBusschere, macro research analyst with Evercore ISI, said in a note.

Apple reported a blowout quarter, sending shares up more than 6%. The company said its overall sales expanded by 11%, and Apple also announced a 4-for-1 stock split

Amazon, meanwhile, traded 5% higher as the company saw its sales skyrocket during the coronavirus pandemic. Facebook shares rallied more than 7% as the social media giant posted revenue growth of 11% even amid the coronavirus pandemic slowdown. The company also issued stronger-than-expected sales guidance for the current quarter. 

Google-parent Alphabet also posted better-than-expected earnings, but the company’s overall revenue declined for the first time in its history. Revenue for Google Cloud were also just below analyst expectations. Alphabet shares fell more than 4%.

“Obviously, no one was doubting any of those companies so the fact they all exceeded expectations isn’t exactly shocking,” Adam Crisafulli of Vital Knowledge, said in a note Friday. “Investors are now trying to smooth out some of the numbers (i.e. how much of the monster upside was a function of extremely conservative guidance along w/an unsustainable spike in revenue and decline in expenses?)”

Collectively the four stocks were set to add about $200 billion to their total market cap, bringing it to more than $5 trillion combined. 

Big Tech has been the stalwart on Wall Street this year. Amazon and Apple are up 65% and 31%, respectively, in 2020. Facebook and Alphabet have risen more than 14% over that time period. 

Investors continued to flock to safe-haven assets amid the uncertainty about the economic recovery. Gold futures spiked to an all-time high of $2,005.4 an ounce on Friday, crossing the $2,000 mark for the first time.

Still, the major U.S. equity averages are looking to wrap up the month of July with solid gains. The S&P 500 has gained 4.7% this month through Thursday’s close, on track for its fourth consecutive positive month. The Dow and the Nasdaq Composite have gained 1.9% and 5.2%, respectively, month to date.

To speak with a member of our team, book online at https://bookwithsfg.timetap.com/give us a call at 612-492-0212 or send us an email at stein@steinfg.com.

— CNBC’s Patti Domm contributed to this report.

CNBC is not affiliated with Voya Financial Advisors or Stein Financial Group

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Voya Financial Advisors. Nothing in the above is meant to be, nor should it be construed as, investment advice or recommendations to buy or sell any security. Individual securities, whenever mentioned, are for illustrative purposes only and may not be relied upon as investment advice. Comments concerning the past performance of [e.g. monetary instruments, investment indexes or international markets] are not intended to be forward looking and should not be viewed as an indication of future results.