Microsoft rallies after market as US trading opens with a ‘flash crash’

25Jan

Microsoft rallies after market as US trading opens with a ‘flash crash’

 

A mini ‘flash crash’ greeted traders on the opening as trading in dozens of blue-chip stocks from ExxonMobil to McDonald’s and Mastercard was briefly halted on Tuesday after problems with the New York Stock Exchange’s opening auction caused sharp swings at the start of trading. More than 75 stocks were stopped for hitting volatility limits within 15 seconds of the open. The Securities and Exchange Commission said it was reviewing the problem.

Overnight the Dow Jones Industrial Average finished higher Tuesday as investors parsed through the latest batch of corporate earnings reports for insight into the state of the economy.

The Dow gained 104 points, or 0.3 per cent, while the S&P 500 traded flat. The Nasdaq Composite dipped 0.3 per cent.

The Nasdaq Composite has gained 8.6 percent so far this year. As investors have been buying tech stocks in the belief that inflation is easing enough for the Fed to begin slowing the pace of its interest rate increases.

Tech titans are among the best-performing stocks in 2023, with the FANG Index — which includes such tech giants as Amazon, Apple, Meta and Netflix — up 14.8 percent in 2023, on pace for its best month since August 2020.

After market Microsoft has just reported earnings after the bell, with its shares rising as much as 5 per cent in extended trading after the company reported fiscal second quarter earnings that topped analysts’ estimates. Sales growth is expected to come in at just 2.3 per cent year over year, which would be the weakest expansion for Microsoft in any period since 2016 

In further tech news the US Justice Department will reportedly sue Google over its digital ad dominance. Prosecutors may file a lawsuit as soon as this week, according to Bloomberg. It would be the department’s second antitrust suit against Google in recent years, and part of a broader crackdown on tech giant.

S&P 500 Sectors were mostly mixed on Tuesday, with Industrials and utilities leading the way, up 0.65 per cent and 0.49 per cent.

Earnings season continued Tuesday with mixed results. 3M dropped 6.2 per cent on disappointing guidance, while Union Pacific dipped 3.3 per cent after falling short of estimates.

Some of the best performing thematics include: gene editing, lithium stocks and outer space concept.

Futures

The SPI futures are pointing to a 0.1 per cent fall.

Currency

One Australian dollar at 8:10 AM has strengthened compared to the US dollar yesterday buying 70.45 US cents (Tue: 70.26 US cents).

Commodities

Gold added 0.5 per cent. Silver gained 0.9 per cent. Copper rose 0.1 per cent and oil fell 1.9 per cent.

Figures around the globe

Across the Atlantic, European markets closed mixed. London’s FTSE fell 0.4 per cent, Frankfurt lost 0.1 per cent while Paris closed 0.3 per cent higher.

In Asian markets, Tokyo’s Nikkei added 1.5 per cent, Hong Kong’s Hang Seng and China’s Shanghai Composite were closed.

Yesterday, the Australian sharemarket added 0.4 per cent to close at 7,490.

Ex-dividends

Alternative Investment Trust (ASX:AIQ) is paying 4.25 cents unfranked

Dividends payable

Premier Investments (ASX:PMV)
360 Capital Group (ASX:TGP)
360 Capital REIT (ASX:TOT)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

Disclaimer

The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.
Copyright 2023 – Finance News Network


Source: Finance News Network

Share this post

Related Posts

28Apr

US stocks rally on big tech earnings

28 Apr 2023 - Stocks rose Thursday, as strong results from Meta Platforms boosted tech-related names, and investors weighed the latest data on the US economy.

Read More
08Feb

S&P 500 notches up best week since November: Aus shares to edge higher

08 Feb 2021 - The Aussie market is set to edge higher following a solid finish to the week on Wall Street. The S&P 500 hit another record high last week up 4.7 per cent for the week to notch up its best 5 day run since early November.

Read More
26Jul

US earnings poised for downgrades as strong $US bites

26 Jul 2022 - The strong dollar has wiped billions of dollars off the second-quarter sales of US companies, prompting many to cut their guidance for the remainder of the year.

Read More
30Jun

US consumers about to be hit hard

30 Jun 2022 - While housing does not account for a huge amount of economic output, it is a boom-bust industry that has historically played an outsize role in downturns. The sector runs on credit and the highest mortgage rates since 2008 will start to bite across consumer spending as new home purchases are often followed by new furniture, new appliances and new electronics – its seems US consumers are about to be hit with the double whammy of...

Read More
04Sep

Tech sector down 5.6% today: Aus shares lose 2.5% over week

04 Sep 2020 - The Australian share market plunged in early trade, dragged down by Aussie tech stocks and tracked sideways for most of the day to finish 3.1 per cent lower. Tech stocks shed 5.6 per cent today and every sector lost 1.7 per cent or more. Meanwhile, iron ore continues to trade at 6-year highs. Macquarie expects vehicle leasing and salary packaging company, Eclipx Group (ASX:ECX) to outperform, assigning it a 12 month price target of $1.70.

Read More
11Sep

S&P 500 lifts as Wall St seeks stability amid September turbulence

11 Sep 2024 - The S&P 500 marked its second consecutive winning session on Tuesday as Wall Street worked to stabilise during a turbulent September.

Read More
05Mar

EcoGrafs (ASX:EGR) WA facility on fast track: Aus shares close 0.7% higher

05 Mar 2021 - The ASX slumped in early trade and a late session recovery wasn’t enough to unwind this morning’s losses. The Aussie market closed out the day 0.7 per cent lower. At the closing bell the S&P/ASX 200 index closed 50 points lower, or 0.7 per cent lower to finish at 6,711. Over the week the S&P/ASX 200 index gained 0.6 per cent or 38 points. The Australian Government has approved major project status for graphite company...

Read More
03Feb

High court dismisses Westpac appeal on financial advice: ASX tracking 1% higher at noon

03 Feb 2021 - The local sharemarket is up 1% or 70 points higher to 6,833. The SPI futures point to a rise of 77 points. Amcor (ASX:AMC) shares did well today after they upgraded their earnings and lifted their dividend today. Westpac (ASX:WBC) acknowledges today’s decision by the High Court of Australia which has dismissed Westpac’s appeal in relation to proceedings brought by ASIC.

Read More
28Jul

US tech stocks set the tone: US senate passes $280b semiconductor bill

28 Jul 2022 - US equities were sharply higher in Wednesday trading with support from better than feared big tech earnings and clarity around interest rates after the Fed’s 75 bps rate rise announcement.

Read More
28Aug

Wall St rises, People’s Bank of China boosts cash injection, Alumina is an Underperform: ASX to fall

26 Aug 2021 - Global stocks closed mixed ahead of the Fed Reserve virtual meeting at Jackson Hole. People’s Bank of China boosted short term cash to soothe worries on a bumpy recovery. Coverage of companies reported on the ASX yesterday. Why Macquarie rates Alumina (ASX:AWC) as underperform.

Read More