Robust earnings results drive US markets higher

Strong earnings and softer treasury yields ease investor concerns further, as Megacap Tech stocks lead markets higher.

The Dow Jones finished the day 0.85 per cent higher, the S&P 500 rose 0.91 per cent and the Nasdaq surged 1.51 per cent on the day.

In company news, Chipmaker Qualcomm rallied 9.7 per cent on better-than-expected earnings and strong revenue guidance. Restaurant delivery service DoorDash dropped 10.3 per cent after reporting a bigger than expected loss. Used car retailer Carvana soared 33.8 per cent after reporting its best-ever earnings, while Moderna surged 12.7 per cent on a smaller-than-expected loss. Nvidia and Amazon finished more than 3 per cent higher.

Apple was trading 6 per cent higher in the after market following the release of its second quarter earnings which came in slightly higher than consensus, but showed overall revenue down 4 per cent, and iPhone sales falling 10 per cent. Apple have also announced a $110 billion buyback, the largest of its kind in history.

As earnings season approaches its finish, three-quarters of the S&P 500 constituents have reported with over 77 per cent beating expectations. Companies are on pace to report 6.9 per cent earnings growth year on year. Technology is the best earnings performer so far with earnings growth currently tracking 44 per cent better year on year.

Investor attention now turns to tomorrow’s April nonfarm payrolls report, with economists polled by Dow Jones expecting 240,000 job gains which would be lower than last month’s 303,000 additions in March.

In commodities news, the International Copper Study Group (ICSG) has lowered its copper supply surplus forecast for this year primarily due to much lower-than-expected mine production. The ICSG anticipates copper oversupply of 162,000 metric tons in 2024 as compared to previous forecast of 467,000 metric tons.

Turning to US sectors, the best performer was Technology which finished the day 1.64 per cent higher. The worst performer was Materials which closed down 0.51 per cent.

Futures

The SPI futures are pointing to a 0.5 per cent gain.

Currency

One Australian dollar at 7.35am was buying 65.66 US cents.

Commodities

Gold has dropped 0.06 per cent. Silver has added 0.30 per cent. Copper has fallen 1.35 per cent. Oil is down 0.06 per cent.

Figures around the globe

European markets closed mixed. London’s FTSE added 0.63 per cent, Frankfurt lost 0.20 per cent, and Paris closed 0.88 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei fell 0.10 per cent, Hong Kong’s Hang Seng added 2.50 per cent while China’s Shanghai Composite was closed..

The Australian share market closed 0.22 per cent higher at 7,586.97.

Ex-dividends
Qualitas Real Estate Income Fund (ASX:QRI) is paying 1.1278 cents unfranked

Dividends payable
Elanor Commercial Property Fund (ASX:ECF)
The Reject Shop Ltd (ASX:TRS)

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

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