A tech sell off helped trim gains on the S&P 500 and Nasdaq falling -0.10% and -0.63% respectively at close.
It was a busy day as a slew of companies reported earnings. Facebook (+2.92%) and Verizon (+7.74%) were among those that gave a boost on great earnings results. However, technology and healthcare led the decliners as Twitter disappointed with a less robust domestic user base. Advanced Micro Devices slid -4.34%, tech company CA plunged -10% on news that merger talks ended with business software company, BMC Software.
- Dow 21,796 +0.39%
- S&P 500 2,475 -0.10%
- Nasdaq 6,382 -0.60%
- Russell 2000 1,443 -0.49%
- NYSE Composite 11,963 -0.01%
- Gold 1,265 +0.79%
- Oil WTI $51.6 +1.24%
- 10-Year Treasury Yield 2.31% +0.03%
Demand for jets fuel durable goods order
In economic news, the Commerce Department released the durable goods data for June showing capital goods orders seen as a proxy for business spending slipped 0.1% the first decline since December. In May, numbers were revised to an increase of 0.7%. However, orders for durable items (big-ticket items meant to last more than three years such as automobiles, washing machines, bulldozers, planes) rose 6.5% helped by demand for jetliners.
The dollar index fell to the lowest level in a year on latest Fed policy outlook which left rates unchanged and said shrinking its balance sheet would begin "relatively soon". The dollar narrowed against the Euro down 0.5% to $1.16. Brent crude climbs to over $50 a barrel, the highest it has been over the last eight weeks as investors gain confidence on OPEC storage cuts.
Twitter share slide, Facebook Q2 more than delivers
Twitter managed to beat revenue estimates with $573.9 mn versus consensus estimates of $537 mn and adjusted earnings per share of $0.08 against $0.05. Shares were pounded falling -3.79% at close and over the last month it has dropped -7.60%.
The social media company had flat user growth domestically which fell to 68 million and international users increased to 260 million.
Facebook earnings delighted investors and its share price surged in trading today rising up to +4.63% in interday trading it earned profits per share of $1.32 over estimates of $1.12.
Revenues of $9.32 bn also beat forecasts $9.2 bn. Active users on a daily basis were 1.32 billion.