Stock Market Today Mid-Morning Updates
On Wednesday, the Dow Jones Industrial Average is down by over 150 points as investors tech giants report their earnings today. Companies like Meta Platforms (NASDAQ: FB) and Ford (NYSE: F) will also report their earnings after the closing bell on Wednesday. This also comes after the Nasdaq lost nearly 4% on Tuesday, its biggest single-session loss since September 2020. According to a new SEC filing, Elon Musk could be required to pay Twitter (NYSE: TWTR) a termination fee of $1 billion if the SpaceX CEO fails to secure enough debt funding to complete his $44 billion deal to buy Twitter.
Shares of Boeing (NYSE: BA) are down by over 8% on today’s opening bell after it reported weaker-than-expected earnings and revenue for its most recent quarter. Robinhood Markets (NASDAQ: HOOD) is also down today after it reported that it will cut about 9% of its staff, citing duplicate roles and job functions after its expansion last year.
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are down by 0.36% today while Microsoft (NASDAQ: MSFT) is up by 3.46%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading mixed on Wednesday. Among the Dow financial leaders, Visa (NYSE: V) is up by 7.46% while JPMorgan Chase (NYSE: JPM) is also down by 0.55%.
Shares of EV leader Tesla (NASDAQ: TSLA) are up by 1.02% on Wednesday. Rival EV companies like Rivian (NASDAQ: RIVN) are also up by 0.78%. Lucid Group (NASDAQ: LCID) is up by 2.18% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) are trading higher today.
Dow Jones Today: U.S. Treasury Yields Hovers At 2.7% Mark As Economic Concerns Persists
Following the stock market opening on Wednesday, the S&P 500 and Dow are trading higher at 0.11% and 0.10%. The Nasdaq however, is down by 0.21% today. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is down by 0.45% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also down by 0.02%.
The benchmark 10-year U.S. Treasury yield is down to 2.77% as markets all around the globe continue to focus on persistent global economic slowdown concerns. A surge in Covid-19 cases in China and escalating tensions in the Russia-Ukraine war have all continue to weigh on investor sentiment.
Today, Russia’s gas supplies to Poland and Bulgaria were halted. Moscow’s gas company Gazprom said that supplies will only resume if and when they paid for the gas in Russia rubles. This also comes as tensions remain high between Western allies and Russia. Foreign Minister Sergei Lavron said earlier this week that the threat of a nuclear war is very significant and the risks should not be underestimated.
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Enphase Gains After Posting Solid Earnings; CEO Badri Kothandaraman On ‘Tripling Down’ On European Markets
Enphase Energy (NASDAQ: ENPH) is front and center in the stock market today. As with most major firms making headlines now, Enphase is gaining traction thanks to its latest earnings release. In it, the renewable energy firm is looking at earnings of $0.79 per share on revenue of $441 million. For reference, this tops consensus analyst forecasts of $0.67 and $432 million respectively. Year-over-year, the figures are looking quite impressive for Enphase. Diving in, the company’s core microinverters and backup energy storage business is thriving. This is evident from the 46% year-over-year jump in revenue, adding up to a record $441 million.
Looking forward, Enphase is also providing strong guidance for the current quarter. The company expects to rake in between $490 million and $520 million, well ahead of the $475 million consensus estimate. Aside from financials, the latest update on Enphase’s plans in Europe from CEO Badri Kothandaraman seems to be turning heads. Namely, Kothandaraman says that the company is “tripling down on Europe in terms of spending.” He continues to explain, “we expect our momentum in Europe to continue with more than 40% sequential revenue growth expected in Q2 versus Q1.” To achieve this, the CEO notes that Enphase is actively expanding its team in the region to bolster further growth.
For one thing, this push into the European market comes at a crucial time in the energy industry. After all, the ongoing invasion of Ukraine by Russia continues to stir up supply issues for the region. As such, demand for energy alternatives that Enphase offers would be rising. For now, Enphase is already operating in Germany, France, Belgium, and the Netherlands. Accordingly, ENPH stock is now up by over 10% at today’s market open.
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Microsoft Stock Pops Following Cloud-Led Earnings Beats And Steady Outlook
While tech firms like Alphabet (NASDAQ: GOOGL) continue to feel the pinch from investors going on the defensive, Microsoft is trending. Notably, this appears to be a positive update for the tech industry in the larger scheme of things. Overall, MSFT stock is now looking at gains of over 3% at today’s opening bell. This would likely be thanks to the enterprise software goliath’s latest quarterly earnings update. For the first quarter of 2022, Microsoft saw earnings of $2.22 per share on revenue of $49.36 billion. This is just above Wall Street’s expectations of $2.19 and $49.05 billion. For the quarter ahead, CFO Amy Hood is guiding for a total revenue in the range of $52.4 billion to $53.2 billion. This would be within striking distance of Wall Street’s expectations of $52.95 billion.
Upon closer inspection, Microsoft’s booming cloud business is likely a key growth driver this quarter. This would be a reference to the company’s Intelligence Cloud segment. The likes of which house its Azure, SQL Server, Windows Server, and enterprise solutions. According to Microsoft, this section alone is responsible for raking in revenue of $19.05 billion. This adds up to a commendable year-over-year increase of about 26%. Also, revenue from the company’s Azure and cloud solutions surged by 46% from the same quarter last year. Naturally, this would be the case with Microsoft having doubled the total number of deals worth over $100 million in that time. As Microsoft seems to be going from strength to strength, I could see MSFT stock appealing to tech investors now.
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