Microsoft's earnings report outpaced expectations on Thursday,
due in large part to sales of the company's Office and server
The company's revenue rose 16 percent and profit was up 17
percent to $0.62 cents per share. Microsoft's positive earnings
indicated the company's wide scale reorganization has shifted their
focus in the right direction.
Microsoft wasn't the only company in the technology sector to
release an impressive earnings report. Amazon followed suit on the
same day with better a better than average earnings report as well.
84 percent of companies in the technology sector have beat earnings
estimate this quarter, making it one of the most resilient
In other news around the markets:
In an effort to avoid a repeat of Facebook's disastrous IPO,
Twitter revealed on Thursday that it intends to raise $1.6 billion
and value the company at a modest $11 billion. The company plans to
sell 70 million shares at between $17 and $20 per share. Federal
Reserve board members voted unanimously to impose stricter
liquidity rules for large banks. In order to to prevent a repeat of
the 2008 financial crisis, US banks will be required to maintain
enough safe assets to fund operations for 30 days Carl Icahn
continued to push Apple for a $150 billion buyback after increasing
his stake in the company to 0.5 percent. Icahn ignored critics who
say he should leave the company alone and sent a letter to Apple's
Chief Executive Tim Cook pressing him to consider the plan.
Allegations that the NSA has been eavesdropping on German
Chancellor Angela Merkel have the potential to thwart legislative
and trade initiatives between the US and the EU. Following the
accusation, many German lawmakers are pressing to suspend
negotiations on an EU-US free-trade agreement.
Asian markets finished the week on a low note, the Japanese
NIKKEI was down 2.75 percent, the Shanghai composite lost 1.45
percent and the Shenzhen composite fell 1.70 percent. However, New
Zealand's NZ 50 gained 0.59 percent and Austalia's ASX 200 was up
European markets got off to a rocky start on Friday, the UK's
FTSE was down 0.06 percent and the eurozone's STOXX 600 lost 0.24
percent. The Spanish IBEX was down 0.88 percent and Italy's MIB
fell 0.79 percent.
Brent futures fell 0.32 percent but WTI futures were up 0.06
percent. Precious metals were lower with gold down 0.57 percent and
silver down 1.76 percent. Industrial metals gained with aluminum
posting the highest gains, up 0.92 percent.
The dollar struggled on Friday as the euro climbed 0.14 percent
to trade at $1.38. The pound gained 0.13 percent against the
greenback and the yen gained 0.22 percent against the dollar.
Notable earnings released on Thursday included:
Amazon.com, Inc. (NASDAQ:
) reported a third quarter loss of $0.09 per share on revenue of
$17.09 billion, compared to last year's loss of $0.60 on revenue of
$13.81 billion. Microsoft Corporation (NASDAQ:
) reported EPS of $0.62 on revenue of $18.53 billion, compared to
last year's EPS 0f $0.53 on revenue of $16.01 billion. Ford Motor
) reported third quarter EPS of $0.45 on revenue of $33.90 billion,
compared to last year's EPS 0f $0.40 on revenue of $30.25 billion.
3M Company (NYSE:
) reported third quarter EPS of $1.78 on revenue of $7.92 billion,
compared to last year's EPS 0f $1.65 on revenue of $7.50 billion.
Raytheon Company (NYSE:
) reported third quarter EPS of $1.51 on revenue of $5.84 billion,
compared to last year's EPS of $1.51 on revenue of $6.04 billion.
Stocks moving in the pre-market included:
) gained 0.91 percent in pre-market trade ahead of the company's
earnings reports. SanDisk Corporation (NASDAQ:
) gained 0.08 percent in pre-market trade after a week of choppy
Earnings reports expected on Friday include:
Procter & Gamble Company (NYSE:
) is expected to report first quarter EPS of $1.06 on revenue of
$21.09 billion, compared to last year's EPS of $1.06 on revenue of
$20.74 billion. United Parcel Services (NYSE:
) is expected to report EPS of $1.15 on revenue of $13.60 billion,
compared to last year's EPS of $1.06 on revenue of $13.07 billion.
Moody's Corporation (NYSE:
) is expected to report third quarter EPS of $0.81 on revenue of
$715.85 million, compared to last year's EPS 0f $0.75 on revenue of
$688.50 million billion. Lear Corporation (NYSE:
) is expected to report third quarter EPS of $1.33 on revenue of
$3.84 billion, compared to last year's EPS 0f $1.29 on revenue of
Friday's economic calendar will be dominated by European
releases including British GDP, Italian retail sales, Spanish PPI
and Germany's business climate index. The US will also release
consumer sentiment data and core durable goods orders.
Happy trading and good luck!
For a recap of Thursday's market action, click
Tune into Benzinga's pre-market info show with Dennis Dick and
(c) 2013 Benzinga.com. Benzinga does not provide investment
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