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Markets Close in the Green; AMZN, INTC & More Beat on Earnings
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Market indices finally caught a bid for a full session today, after a series of early gains deteriorating by the close in previous trading days this week. Yesterday afternoon’s and this morning’s relative strength in earnings results from companies like Meta (META - Free Report) and Caterpillar (CAT - Free Report) . Markets opened in the positive across the four major indices and closed near session highs: the Dow gained +512 points, +1.54%; the S&P 500 +1.91%; the Nasdaq zoomed ahead +280 points, +2.37%; and the small-cap Russell 2000 was +1.20%.
This was a strong enough trading day to pull all these indices into positive territory for the past five trading days (save the Russell, which remains down nearly -2% over the past week). We did see a big miss on Pending Home Sales for March after the open — -5.2% versus expectations of +0.5% and +0.8% reported the previous month — but this will not likely be enough to switch on a light over voting Fed members’ heads to stand pat on interest rates next week. For the month, the indices are up from +3.6% (Nasdaq) to +4.4% (Dow), aside from the Russell, which is now nearly break-even.
Amazon (AMZN - Free Report) beat expectations on both top and bottom lines in its Q1 report out after the closing bell: earnings of 31 cents per share outpaced the Zacks consensus by a solid dime on quarterly sales of $127.47 billion, ahead of the expected $124.8 billion. Shares shot up over +10% initially on the news, but have since pulled back to around +7% in after-hours trading.
The company topped expectations pretty much across the board: Amazon Web Services (AWS — its cloud computing component) came in at $21.4 billion versus $21.1 billion expected. Online Stores made $51.1 billion in the quarter, ahead of the $50.6 billion anticipated. Subscriber Services made $9.7 billion versus the $9.5 billion estimate. Advertising reached $9.5 billion versus $9.1 billion consensus.
We see margins holding up nicely for the e-commerce leader, with guidance raised for Q2 revenues and Operating Income. The company also reported a -10% contraction in company headcount year over year; Amazon now has about 1.47 million employees. Shares continue to outperform the Nasdaq overall, +28% year to date, after a very sluggish full-year 2022.
Intel (INTC - Free Report) also put up improvements over expectations, with a bottom line of -$0.04 per share 4x better than the -$0.16 per share anticipated on revenues of $11.72 billion in the quarter surpassing the $11.01 billion in the Zacks consensus (though still down -36% year over year). Data Center came in higher at $3.7 billion, and the Client Computing Group posted a big beat: $5.8 billion versus $4.9 billion expected. But negative quarterly earnings guidance for Q2 helped move shares from +3% to the positive in late trading to -1.2% at this hour.
By far the biggest disappointment among late traders was Snap (SNAP - Free Report) following its Q1 release: earnings of +$0.01 per share swung to a positive from -$0.01 expected, but sales of $989 million missed expectations of $1.01 billion by -7% —its first year-over-year revenue decline in its publicly traded existence — with Q2 revenue guidance brought down as well. With $300 million in stock-based compensation for a company not pulling in $1 billion in quarterly revenues, SNAP shares had fallen as low as -22% in the after-market.
Pinterest (PINS - Free Report) also saw its stock price drop double-digits following its Q1 report, even as earnings of 8 cents per share beat the $0.00 expected on the bottom line and sales of $603 million beating $593.5 million expected on the top. But operating expenses in the company’s guidance are now expected to be in the low teens, and as a result, shares of the interactive platform are down -10% in late trading.
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Markets Close in the Green; AMZN, INTC & More Beat on Earnings
Market indices finally caught a bid for a full session today, after a series of early gains deteriorating by the close in previous trading days this week. Yesterday afternoon’s and this morning’s relative strength in earnings results from companies like Meta (META - Free Report) and Caterpillar (CAT - Free Report) . Markets opened in the positive across the four major indices and closed near session highs: the Dow gained +512 points, +1.54%; the S&P 500 +1.91%; the Nasdaq zoomed ahead +280 points, +2.37%; and the small-cap Russell 2000 was +1.20%.
This was a strong enough trading day to pull all these indices into positive territory for the past five trading days (save the Russell, which remains down nearly -2% over the past week). We did see a big miss on Pending Home Sales for March after the open — -5.2% versus expectations of +0.5% and +0.8% reported the previous month — but this will not likely be enough to switch on a light over voting Fed members’ heads to stand pat on interest rates next week. For the month, the indices are up from +3.6% (Nasdaq) to +4.4% (Dow), aside from the Russell, which is now nearly break-even.
Amazon (AMZN - Free Report) beat expectations on both top and bottom lines in its Q1 report out after the closing bell: earnings of 31 cents per share outpaced the Zacks consensus by a solid dime on quarterly sales of $127.47 billion, ahead of the expected $124.8 billion. Shares shot up over +10% initially on the news, but have since pulled back to around +7% in after-hours trading.
The company topped expectations pretty much across the board: Amazon Web Services (AWS — its cloud computing component) came in at $21.4 billion versus $21.1 billion expected. Online Stores made $51.1 billion in the quarter, ahead of the $50.6 billion anticipated. Subscriber Services made $9.7 billion versus the $9.5 billion estimate. Advertising reached $9.5 billion versus $9.1 billion consensus.
We see margins holding up nicely for the e-commerce leader, with guidance raised for Q2 revenues and Operating Income. The company also reported a -10% contraction in company headcount year over year; Amazon now has about 1.47 million employees. Shares continue to outperform the Nasdaq overall, +28% year to date, after a very sluggish full-year 2022.
Intel (INTC - Free Report) also put up improvements over expectations, with a bottom line of -$0.04 per share 4x better than the -$0.16 per share anticipated on revenues of $11.72 billion in the quarter surpassing the $11.01 billion in the Zacks consensus (though still down -36% year over year). Data Center came in higher at $3.7 billion, and the Client Computing Group posted a big beat: $5.8 billion versus $4.9 billion expected. But negative quarterly earnings guidance for Q2 helped move shares from +3% to the positive in late trading to -1.2% at this hour.
By far the biggest disappointment among late traders was Snap (SNAP - Free Report) following its Q1 release: earnings of +$0.01 per share swung to a positive from -$0.01 expected, but sales of $989 million missed expectations of $1.01 billion by -7% —its first year-over-year revenue decline in its publicly traded existence — with Q2 revenue guidance brought down as well. With $300 million in stock-based compensation for a company not pulling in $1 billion in quarterly revenues, SNAP shares had fallen as low as -22% in the after-market.
Pinterest (PINS - Free Report) also saw its stock price drop double-digits following its Q1 report, even as earnings of 8 cents per share beat the $0.00 expected on the bottom line and sales of $603 million beating $593.5 million expected on the top. But operating expenses in the company’s guidance are now expected to be in the low teens, and as a result, shares of the interactive platform are down -10% in late trading.
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