The stock markets in the United States rallied due to the positive performance of the technology sector. The NASDAQ is close to reaching its highest level since 2000.
In a telephone interview with Bloomberg, Mark Kepner, an equity trader at Themis Trading LLC said, “Earnings are coming in better-than-expected so far, so the dire consequences that were predicted aren’t quite there. We keep getting up to these levels in the market.”
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Kepner added, “It seems like we can’t penetrate higher. It tends to fall back a little.” According to him, something pretty good is necessary for the market to get over the hump. He said, “Earnings may be what we need.”
Analysts previously estimated that the first quarter earnings of S&P 500 companies will decline 5.6%. They revised their forecast, and now expected a decline of 4.3%.
Ron Anari, senior vice president of trading at ICAP Plc commented, “The stock market has been trading in a range for a while, and it seems there’s a little resistance around these levels. Earnings aren’t as bad as expected, and if we make it through this season a little better than estimates, we could continue rallying.”
- Dow Jones Industrial Average (DJIA) – 18,038.07 (+0.49%)
- S&P 500- 2,107.96 (+0.51%)
- NASDAQ- 5,035.17 (+0.42%)
- Russell 2000- 1,265.35 (+0.09%)
EURO STOXX 50 Price EUR- 3,724.49 (+0.14%)
- FTSE 100 Index- 7,028.93 (-0.49%)
- Deutsche Borse AG German Stock Index DAX- 11,867.37 (-0.60%)
- Nikkei 225- 20,133.90 (+1.13%)
- Hong Kong Hang Seng Index- 27,933.85 (+0.30%)
- Shanghai Shenzhen CSI 300 Index- 4,739.81 (+2.61%)
Stocks in Focus
The stock price of Broadcom increased 5% to $46.18 per share. The company reported earnings of $0.64 per share, higher than the $0.60 per share expected by Wall Street analysts for the first quarter. Its revenue was $2.06 billion, an increase of 4% year-over-year.
Tesla Motors advanced more than 4% to $219.38 per share. The electric car manufacturer sent an e-mail to analysts and investors indicating that it will announce a home battery and a “very large” utility scale battery on April 30.
McDonald’s gained more than 3% to $97.84 per share. CEO Steve Easterbrook said a turnaround plan would “improve our performance and deliver enduring profitable growth.” His statement calmed investors after McDonald’s reported that its first quarter earnings declined to $0.84 per share from $1.21 per share last year.