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Why Microsoft Corporation (MSFT), Adobe Systems Incorporated (ADBE) and FedEx Corporation (FDX) Are 3 of Wednesday’s Best Stocks

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U.S. stocks rose Wednesday as the Federal Reserve again held off on raising interest rates. However, comments from Fed Chairwoman Janet Yellen set the stage for a rate hike in December. The S&P 500 rose 1.09% while the Dow Jones Industrial Average gained 0.9%. The Nasdaq Composite finished by higher by 1.03%.

On a strong day for stocks, Adobe Systems Incorporated (NASDAQ: ADBE ), FedEx Corporation (NYSE: FDX ) and Microsoft Corporation (NASDAQ: MSFT ) were among the strongest of the strong.

Adobe Systems Incorporated (ADBE)

Shares of Adobe Systems climbed 7.1% on more than triple the average daily volume, touching a new 52-week high along the way, after the company reported impressive fiscal third-quarter results.

Adobe, which makes software used for graphic design, among other applications, reported fiscal third-quarter earnings of 75 cents a share on sales of $1.46 billion. Analysts expected ADBE to earn 72 cents per share on sales of $1.45 billion. Cloud computing also drove growth for Adobe.

Adobe's "Creative Cloud package of software tools added more subscribers, which drove revenue. Its digital media segment revenue increased 29 percent year-over-year," reports CNBC .

Adobe's forecasts now suggest 20%-plus growth in Digital Media and Marketing Cloud.

The beat could prompt Adobe to outperform for the rest of the year .

FedEx Corporation (FDX)

A day after investors pushed the stock higher on news of 2017 fee hikes , FDX stock climbed 6.9% on nearly quadruple the average turnover after reporting solid fiscal first-quarter earnings and boosting its outlook .

Tennessee-based FDX earned $2.90 per share in its fiscal first quarter on revenue of $14.7 billion. Analysts were expecting FedEx to earn $2.79 a share on sales of $14.6 billion.

FedEx also raised its earnings outlook for fiscal 2017 to $11.85 to $12.35 per share from $11.75 to $12.25.

The company expects to add 50,000 seasonal workers to meet shipping demands for it what it expects to be record e-commerce shopping during the upcoming holiday season, according to a Bloomberg report.

Microsoft Corporation (MSFT)

MSFT, the world's largest software maker and a member of the Dow Jones Industrial Average, advanced 1.6% on above-average volume after the company unveiled significant additions to its shareholder rewards efforts.

Microsoft is implementing a new $40 billion share repurchase program after the current slate of buybacks ends at the end of this year. The buyback figure is equal to 9% of MSFT's shares outstanding.

Meanwhile, the company also announced a boost to its dividend, from 36 cents per share quarterly to 39 cents. Based on the new dividend, MSFT yields around 2.7%.

InvestorPlace's Chris Tyler says this fresh cash spend should be a catalyst for even more bullishness in MSFT stock going forward .

As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities.

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The post Why Microsoft Corporation (MSFT), Adobe Systems Incorporated (ADBE) and FedEx Corporation (FDX) Are 3 of Wednesday's Best Stocks appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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