Yahoo Finance Dow Up 3 Straight Sessions, Nasdaq Leads on Tesla Upgrade
Don’t look now, but the Dow has quietly put together a new three-day winning streak. All major indices closed in the green today, with the S&P 500 and Nasdaq notching back-to-back up-days. The Dow gained 87 points on the session, +0.25%, while the Nasdaq posted an impressive +156 points, +1.14%. The S&P and small-cap Russell 2000 gained +0.67% and +0.23%, respectively. The tech-heavy Nasdaq is the first of the major indices to swing back to positive over the past month of trading.
Aside from a Tesla TSLA upgrade from Morgan Stanley this morning — leading to +10% gains for the EV leader, on news that a potential half-trillion-dollar gain in market value on the company’s Dojo supercomputer, which was been compared favorably with Amazon’s AMZN AWS — there haven’t been much in terms of market catalysts for today’s trading. No major economic reports nor quarterly earnings results had hit the tape this morning.
This changed somewhat this afternoon, with Oracle’s ORCL fiscal Q1 results out after today’s close. As per normal, the tech giant beat expectations slightly on the bottom line, but only matched on the top. Earnings of $1.19 per share amounted to a 5-cent beat, while $12.45 billion in quarterly sales was exactly what the Zacks consensus had been. Cloud infrastructure reportedly grew +66% in the quarter — a high margin compared with Oracle’s competition.
This marks the fourth-straight earnings beat for the company, which has only missed on its bottom line twice in the past five years. Yet shares are trading down -5% on this earnings news, likely because the enterprise software major had already been trading at 22x earnings, and is up more than +50% year to date. It’s an emerging player in the A.I. space, so has benefitted from that tech-bull windfall that saw companies like NVIDIA NVDA lead the Nasdaq higher this year.
We’ll be quiet for the most part tomorrow, as well — no major economic prints are expected, Fed members are in a blackout period before next week’s FOMC meeting, and no big companies are reporting earnings — it being between general earnings seasons — until Thursday, when Adobe ADBE and Lennar Homes LEN come out with quarterly results. That said, there’s clearly been an upward bias, although it’s unclear how high market participants are likely to ride this wave on such scant data. Perhaps Wednesday’s CPI numbers will be the next catalyst.
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