US stocks pullback but Facebook and Microsoft jump

Summary:

  • US stocks trading in the red

  • DJIA pulls back to prior support

  • Facebook and Microsoft both jump after earnings update

 

There’s been a bit of weakness seen in stocks at the start of the US session with the markets pulling back after a strong run higher of late. The DJIA is the worst performer of the large-cap US indices and the market has now pulled back to retest prior support from last week’s low. The region around 26310 has attracted buyers on the past couple of occasions it’s been tested but a move below there would open up the chance of larger declines towards 26060.

US30 has pulled back to prior support around 26310 which also coincides with the low of the Ichimoku cloud on H4. Source: xStation

 

While the broader markets a trading lower there are a couple of individual shares enjoying good gains with both Facebook and Microsoft surging after their latest trading update. Facebook announced a solid set of results after last night’s closing bell with earnings per share of $1.89 vs $1.62 expected - if the one-time legal expense for the fine in the wake of the Cambridge Analytica data mining scandal is ignored. First quarter revenue was $15.08B, more than the $14.98B expected while monthly active users for the app came in at 2.38 billion.

 

Meanwhile Microsoft has also gained after it’s latest release with the market cap for the stock briefly topping the $1T mark earlier this afternoon.  Microsoft’s gains followed a fiscal third-quarter earnings report that included an outlook range that bookended Wall Street estimates while topping the analyst consensus for the quarter, led by strong gains in its cloud services. The company reported fiscal third-quarter net income of $8.81 billion, or $1.14 a share, compared with $7.42 billion, or 95 cents a share, in the year-ago period. Revenue rose to $30.57 billion from $26.82 billion in the year-ago quarter.

Analysts surveyed by FactSet had forecast earnings of $1 a share on revenue of $29.88 billion.

Facebook shares jumped as much as 8% on the open with the stock tagging the 78.6% fib retracement around 198. Source: xStation

 

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