Wall Street Stocks Hit New Record as Big Tech Smashes Estimates
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- Stocks on Wall Street notch a new closing record, boosted by stellar earnings reports
- Third-quarter results from Google’s Alphabet and Microsoft stretch beyond estimates
What’s on Focus in the Markets?
Wall Street stocks notched a new all-time high Tuesday as traders and investors cheered stellar earnings reports. Both the S&P500 and the Dow Jones Industrial Average swung to closing records, surpassing their Monday scores.
That said, the Dow Jones added a modest gain of about 15 points, enough to log its 38th record close of the year. In addition, the S&P500 advanced 8 points to its 57th closing high in the past 10 months.
Meanwhile, the tech-heavy Nasdaq Composite also finished the day in the green. The benchmark index added 9 points to end the session less than 1% away from its all-time high set in September.
Against that backdrop, investors remained optimistic about the expected earnings reports after the bell on Tuesday.
Microsoft and Alphabet Smash Estimates
Solid earnings reports from Microsoft and Google parent Alphabet added to the positive market sentiment. Leading up to their earnings release in after-hours, both Microsoft stock and Alphabet stock advanced during the session.
With that in mind, Microsoft reported revenue of $45.3 billion for the past quarter, above expectations of $44 billion. The figure was up 22% from the same quarter a year ago. As a result, net income surged 48% to $20.5 billion, topping analyst estimates of $15.7 billion in profit.
On the other hand, Google’s Alphabet said its revenue rose 41% to $65.12 billion. In turn, profit arrived at $21.03 billion, exceeding estimates of $17.6 billion.
In overnight trading, shares of Microsoft jumped about 2%, while Alphabet stock declined roughly 0.9%. Additionally, Twitter posted its third-quarter results, also after the market closed. Twitter shares rose nearly 4% in after-hours trading as investors hailed revenue growth of 37% in the third quarter to $1.28 billion.
What’s the Latest News on Bitcoin?
Bitcoin is trading lower on Wednesday, gravitating toward $60,000. The calm crypto market today comes after Wall Street welcomed a third Bitcoin ETF in the small crypto family trading in traditional markets. The VanEck Bitcoin Strategy fund landed for trading on Tuesday, joining the ProShares Bitcoin ETF and the Valkyrie Bitcoin ETF.
Elsewhere in the Financial Markets
In Europe, upbeat earnings reports are also buoying stocks. In more detail, the Europe-wide Stoxx 600 had its highest close on Tuesday since its all-time high in August. The broad-based index rose 0.8% to 475.74, just below its record high of 475.83 set two months ago.
Stateside, US futures on Wednesday point to a relatively calm open as investors prepare for another day of earnings and increased volatility.
What’s Next for Traders and Investors?
Market participants today are shifting their focus to another set of earnings reports slated for release. On that note, Coca-Cola delivers its third-quarter figures today. Also, forex traders will get a chance to play around with volatility in the Canadian dollar.
The Bank of Canada is set to report its monetary policy statement along with interest rate decisions. In addition, a press conference will follow.
Today’s Economic Calendar (EST times)
- 10:00 am, CAD, BoC Monetary Policy Report
- 10:00 am, CAD, BoC Interest Rate Decision
- 11:00 am, CAD, BoC Press Conference
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