People are silhouetted as they pose with laptops in front of a screen projected with a Google logo.© Dado Ruvic / Reuters/Reuters
The record smashing climb in the Nasdaq shows few signs of ending, after a frenzy of better-than-expected earnings reports after the closing bell Thursday from some of the biggest names in tech.
The Nasdaq composite rose 0.39 per cent on Thursday to a record 6,048.94. Futures for the index surged about 1 per cent after the close on the earnings beats, pointing to a big market day on Friday for the tech sector.
Amazon reported adjusted earnings of $1.48 (U.S.) per share, far surpassing the $1.12 that analysts had expected. Google parent Alphabet reported earnings of $7.73 a share, beating the consensus forecast of $7.39. And Microsoft reported adjusted profits of 73 cents, 3 cents better than expected. Both Amazon and Alphabet shares rallied more than 3 per cent in the post market, but Microsoft dipped as revenues came in short of forecasts.
Also in the tech sector, Intel Corp. reported profits that modestly beat estimates, but revenues from its higher-margin data centre disappointed investors, pressuring the stock in the post market. GoPro Inc. surprised investors with higher sales than analysts expected, showing that a cost-cutting plan is starting to stem the action camera maker's decline.
Meanwhile, Starbucks Corp.'s new chief, who took the reins this month, isn't getting much of a honeymoon. The shares declined as much as 4.5 per cent in late trading Thursday after quarterly sales missed analysts' estimates, renewing concerns that competition and mobile-ordering problems are weighing on growth. The results leave it up to CEO Kevin Johnson to reassure investors he has a plan as cheaper rivals target his company's market share.
The brisk pace of earnings reports from both sides of the border will continue into Friday morning. On tap is General Motors Corp., which has an excellent track record of pleasing the Street, having beaten analyst expectations for adjusted earnings in seven of the past eight quarters, according to Bloomberg data. This time around, the Street is predicting adjusted profit of $1.47, up 17 per cent from a year ago.
Uranium giant Cameco Corp. will also reveal its first-quarter results in the premarket. Analysts are expecting an adjusted loss of 1 cent per share. Other names include Colgate-Palmolive, Chevron Corp., Royal Caribbean Cruises, Thomson Reuters Corp., Imperial Oil Ltd., and Le Château Inc.
With wire services
Darcy Keith