TMCnet News
MARKET COMMENT: US Stocks Set To Jump As Apple, Facebook Give Cheer(Alliance News Via Acquire Media NewsEdge) LONDON (Alliance News) - US stocks are set to follow those in Europe higher Thursday, with the technology-heavy Nasdaq Composite up more than 1.5% in the pre-market following the strong results from Apple and Facebook late Wednesday that have brought some of the shine back to global technology stocks following the heavy selling they have suffered in recent sessions. "Corporate earnings season appears to have given investors the boost they have been craving for months," said Alpari analyst Craig Erlam. "This is especially true of the results from Apple and Facebook after the close on Wednesday, with both easily exceeding expectations," the analyst said. While analyst have been quick to caution that expectations for this current round of US corporate earnings were particularly low due to the poor winter weather, the significant beat from the two major technology bellwethers appears to have shifter sentiment somewhat. Ahead of the US market open, technology stocks are driving the pre-markets higher. Though lagging the Nasdaq, the DJIA still looks set to open up 0.3% and the S&P 500 up 0.5%. The markets are continuing to shrug off the ever increasing tension between Russia and Ukraine. Clashed have broken out in the eastern Ukraine Thursday, with up to five pro-Russian militants reportedly killed during a raid in the eastern town of Sloviansk. Despite Vladimir Putin warning of serious "consequences" if Kiev is found to be using the army against its own people, the financial markets are so far remaining relatively calm, preferring to focus on the busy day of corporate earnings. Results from big names including Microsoft, Starbucks, and Amazon - Amazon being another big technology "momentum" stock that has recently had its valuation called into question - are due to come out throughout the day. Results that have already been released Thursday have largely beaten expectations, with Caterpillar adding to the positive sentiment Thursday, showing first quarter earnings per share of USD1.61, much better than the USD1.23 analysts had expected. The stock is up 3.7% since the release in the pre-market. Verizon Communications also has beaten expectations, with earnings per share of USD0.91, better than the USD0.87 expected. Microsoft is expected to announce earnings of USD0.63 per share on revenue of USD20.39 billion, says CMC Markets analyst Jasper Lawler. Apple's PC competitor is concentrating on its enterprise business, as well as its Xbox gaming console, for revenue growth as the PC market continues to slow, Lawler says. Stocks indices in the UK are continuing to hold onto morning gains, with the leading index at a six-week high. The FTSE 100 is up 0.7% at 6,718.02, the FTSE 250 is up 0.4% at 16,056.85, and the AIM All-share is up 0.1% at 827.38. A similar picture across Europe sees the French CAC 40 up 0.9%. The German DAX, which analysts suggest would have the most to lose in Europe from a deterioration in relations between Ukraine and Russia, is off its earlier highs, but remains 0.3% higher. Still to come in the economic calendar Thursday, US durable goods orders are released at 1230 GMT, economists expect orders growth to have remained strong at 2.0% in March, marginally lower than the 2.2% recorded in February. "A sharp jump in orders for Boeing planes in March is expected to have underpinned a further strong rise in headline durable goods orders," said Lloyds Bank macroeconomist Nikesh Sawjani. Weekly initial jobless claims numbers are also due at 1230 GMT, followed by the Kansas Fed manufacturing activity index at 1500 GMT. There's no top-tier data from the UK in Thursday's economic calendar. Copyright 2014 Alliance News Limited. All Rights Reserved. |