of S&P 500 Index (SNPINDEX: ^GSPC) Since stocks are divided into two categories, the closing price on October 27 fell 10 points, or about 0.3%. One category is rising technology stocks, and the other is falling stocks. Today, the technology and communications industries both rose, while all other industries closed down. Overall, 381 of the 503 stocks in the index closed lower today.
The biggest gainers today (not surprisingly) are technology stocks. Xilinx (NASDAQ: XLNX) Officially announced that the company’s stock rose 8.6% Advanced Micro Devices (NASDAQ: AMD) Spend 35 billion US dollars to acquire its smaller competitor.Share of F5 network (Nasdaq: FFIV) Revenue increased by 8.5%.
Companies reporting earnings have caused expenses to fall.Share of Franklin resources (New York Stock Exchange: BEN) After the company announced that its quarterly results failed to meet expectations, its stock price fell by 1
Big technology is the only bright spot
Xilinx’s stock paid off after the AMD transaction was announced, which will allow Xilinx investors to obtain 1.7234 AMD shares for each share of Xilinx held by them, giving this smaller company a value of $35 billion.The acquisition is expected to help AMD accelerate its competition in the fast-growing data center field Intel Has a high pitch.
F5 Networks stock rose sharply after the company released its fourth quarter earnings report and earnings conference call. F5 reports strong growth in its emerging subscription software business, and CEO Frank Pelzer said that software sales will grow by 35% this year. As more companies turn to software as a service, this growth has helped the company get rid of its declining hardware and software sales model.
Today’s largest large technology stocks also rose, apple (Nasdaq stock code: AAPL), Amazon (Nasdaq stock code: AMZN)with Microsoft (Nasdaq stock code: MSFT) All reported earnings are slightly higher than earnings. Microsoft reported after the close that it achieved a profit of approximately $14 billion. Apple and Amazon are scheduled to release reports later this week. Amazon also announced today that it will need to hire another 100,000 seasonal workers to support demand throughout the holiday shopping season.
Earnings woes have driven these stocks lower
The recent profit outlook has turned negative, and today the four worst-performing S&P stocks all fell.
Franklin Resources (Franklin Resources) shares fell sharply after the company announced earnings per share of $0.56, well below expectations. At the same time, investors also expressed doubts about the near-term prospects of this financial planner and financial services company. Recently acquired.
After a frustrating quarter (at least out of Wall Street’s expectations), shares of the pharmaceutical giant Eli Lilly also fell today. Revenue increased by 5% to reach $5.7 billion, but analysts hope to see $5.9 billion, and adjusted earnings per share of $1.54 did not reach the $1.71 per share expected by Wall Street. In short, today’s decline is the result of Wall Street’s attempts to gild. Today’s sell-off may be an opportunity to buy high-quality company stock at a substantial price.
Defense and aerospace giant Raytheon’s shares fell as the company’s commercial aviation business continued to struggle under the pressure of the coronavirus pandemic. The company said it will cut nearly 20,000 employees and contractors, mainly in sectors that focus on commercial aviation. As part of the cost-cutting effort, it will cut more than 20% of the existing infrastructure. The depth of the layoffs, whether it is the number of personnel or the company’s facilities, shows that Raytheon’s management expects that it will be difficult for commercial aviation to return to normal within a few years.
Glucose Monitoring Equipment Company reported revenue growth of 26% and steady growth in operating income, and set guidance for a 29% growth for the current fiscal year. In most cases, this is a reliable result, but it was not released until after the close today. The company announced the third quarter revenue results ahead of schedule on October 26, and at the same time announced the retirement of Chief Commercial Officer Rick Doubleday. He joined Dexcom in 2009 and is expected to achieve sales of 2 billion US dollars. The business played an important role this year.
Looking to the future: the earnings season is heating up
More than 100 S&P 500 companies will announce earnings before the end of this weekend. This includes six of the eight largest companies, letter (Nasdaq stock code: GOOGL)(Nasdaq stock code: GOOG) with Facebook (Nasdaq stock code: FB) Report Wednesday, and visa (New York Stock Exchange: V) Report tomorrow MasterCard (New York Stock Exchange: MA).
Investors should expect a lot of new information to emerge in large numbers, and traders hope to make money before and after the report is released, which will exacerbate recent volatility. What will happen in the next few days is unpredictable. But looking at the bigger picture and looking to the future, I think this is a reasonable conclusion that investors can still view stocks as the best way to create wealth in the long term.