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Markets Close Well into the Green; AMD, SNAP Report Q4

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Market indices swung to the positive ahead of today’s opening bell, and hit the close at session highs. We were led by the small-cap Russell 2000 on the session, which grew +2.45% and maintained a lead over the other top indices all day. The Dow gained +356 points, +1.06%; the S&P 500 reached +1.48%; and the tech-heavy Nasdaq rose +191 points, +1.68% for the session.

Market futures were buoyed by positive Q4 earnings results from ExxonMobil (XOM - Free Report) , Pfizer (PFE - Free Report) , General Motors (GM - Free Report) and McDonald’s (MCD - Free Report) , and also saw a gradual slide on the Q4 Employment Cost Index. Just 15 minutes before the opening bell, we saw results from the Case-Shiller Home Price Index, which grew +7.7% year over year for the month of November.

As always with Case-Shiller numbers, we’re looking pretty far back into the rearview mirror; after all, the Fed funds rate back in November of last year had only just been raised to a range of 3.75-4.00%. And, while +7.7% in home price increases is still rather lofty, it’s well off the +9.2% posted for October. The 10-city composite reached +6.3% from +8.0% previously; the 20-city reached +6.8% from +8.6% in October — all notably large downturns.

Gone are the days of 30%+ home price gains year over year in the top markets: this report’s leaders were barely half that: Miami reached +18.4% and Tampa +16.9%, followed by Atlanta and Charlotte at +12.7% and +12.6%, respectively. November also brought the first negative year-over-year number in more than three years: San Francisco was -1.6%, with Seattle +1.5% and Portland +3.9% rounding out underperformers.

Advance Micro Devices (AMD - Free Report) spiked in the moments following its Q4 earnings report, which came out after the closing bell: 69 cents per share outperformed the Zacks consensus by 3 cents, with revenues of $5.60 billion easily swooping past the $5.51 billion analysts were expecting. It’s Data Center segment grew +42% year over year, while its Embedded segment jumped to $1.4 billion in quarterly sales.

AMD’s revenue guidance for Q1 has come down a bit, however, from $5.57 billion in the Zacks consensus to $5.2 billion now. Its Client segment dropped -51% in the quarter, as Gaming also fell -7%. Shares have ebbed back to +3.5% gains in the after-market, following +4.5% gains directly after the results came out. The company only has one earnings miss in the past five years.

Snap Inc. (SNAP - Free Report) shares have tumbled -14.5% in late trading, even as the social media firm has posted a four-cent beat to earnings of 14 cents per share in the quarter, on in-line $1.3 billion in revenues. While the company did not issue direct guidance, it did mention current-quarter revenues are down -7% right now. Informally, -2% to -10% guidance is expected by the end of Q1.

Tomorrow morning brings us new private-sector jobs numbers from Automatic Data Processing (ADP - Free Report) , along with new JOLTS data for December and S&P PMI and ISM Manufacturing for January. In the afternoon, we’ll get a new 25 bps interest rate hike, as well as a news conference from Fed Chair Jerome Powell regarding the Fed’s overall thought process going forward. Don’t expect him to discuss unicorns and cotton candy.

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