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Tech Continues to Dominate Earnings; Amazon delivers, while Intel disappoints after the close

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.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Ed Moya

Ed Moya [4]

Senior Market Analyst at OANDA
With more than 20 years’ trading experience, Ed Moya is a market analyst with OANDA, producing up-to-the-minute fundamental analysis of geo-political events and monetary policies in the US, Europe, the Middle East and North Africa. Over the course of his career, he has worked with some of the world’s leading forex brokerages and research departments including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including BNN, CNBC, Fox Business, and Bloomberg. He is often quoted in leading print and online publications such as the Wall Street Journal and the Washington Post. He holds a BA in Economics from Rutgers University. Follow Ed on Twitter @edjmoya ‏
Ed Moya