Dow Jones & S&P 500 Recover, Amazon And Google Earnings Impress

The Dow Jones recorded a second consecutive session of considerable gains, extending the recovery from last week’s rout. Not to be outdone, the S&P 500 enjoyed its best 2-day performance since November. As retail traders seem to relent and normality returns to the US markets, impressive earnings from both Amazon (AMZN) and Alphabet (GOOGL) could help propel the indices higher still.

ALPHABET EARNINGS

Alphabet was first to announce after the close, revealing yet another remarkable quarter with beats on both top and bottom lines. Shareholders were quick to react as shares of Google pushed to new all-time highs in after-hours trading, surpassing $2,000 for the first time.

With an encouraging quarterly report card and the stock price at a record, the outlook for Google in the weeks and months ahead is encouraging. As a key member of the S&P 500 and Nasdaq 100, continued outperformance from Google could help drive growth for the broader indices.

AMAZON EARNINGS

Despite a narrower beat than that delivered by Alphabet, Amazon earnings may overshadow the former in financial news media coverage following a surprise leadership announcement. Amazon founder and longtime CEO, Jeff Bezos, announced he will transition to Executive Chair in the third quarter and Andy Jassy will assume role of Chief Executive Officer.

Alongside his role as a visionary transformed the lives of consumers across the globe, Jeff Bezos ushered in a period of immense gains in Amazon’s share price. That said, Andy Jassy will have massive shoes to fill and shareholders will watch closely and, I suspect, scrutinize viciously. Still, the initial reaction in AMZN shares was a modest gain, suggesting investors were satisfied with the decision to place Mr. Jassy in charge.

Only time will tell how Mr. Jassy handles the new role and what impact it will have on the stock price, but the initial reaction is encouraging and the Nasdaq 100, Dow Jones and S&P 500 seem poised to continue their recovery from last week’s turbulence.

1 2
View single page >> |

Disclosure: See the full disclosure for DailyFX here.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.