The Nasdaq closed 0.2% higher at 8,118 as tech earnings continue to impress. Riding momentum from yesterday’s results from Microsoft and Facebook, we could see investors reallocate positions back into volatile sector. After being heavily beaten down in December, technology shares have outperformed in 2019, with tech stocks leading the way higher in the S&P 500 with a 27.2% gain.
After-hours earnings results came in for both Amazon and Intel. Amazon trading remains volatile after the company’s earnings beat and in-line revenue, but the guidance was nothing special. Shares for the online giant initially surged higher towards $1,970 before settling back around $1,915.
Intel shares got punished, down over 6% after slashing full year guidance. The computer chip maker’s report was downright ugly with a miss on revenue, declining gross margins and comments. CEO Bob Swan noted, “we’re taking a more cautious view of the year, although we expect market conditions to improve in the second half.”
While Intel is the first real bad tech earnings report, overall the technology sector results have been pretty positive and outlooks more encouraging than initially thought. We may not see negative earnings growth this quarter and if that is the case, tech may still be the biggest beneficiary.
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