Don’t look now, but the Dow has quietly scored a new three-day winning streak. All major indices closed in the green today with continued gains in the S&P 500 and Nasdaq. The Dow gained 87 points, +0.25% on the session, while the Nasdaq gained 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 indexes to return to positive territory in last month’s trading.
except one Tesla TSLA upgrade from Morgan Stanley this morning – +10% gain for the EV leader on news that the company had a potential half-trillion-dollar gain in market value on its Dojo supercomputer, which compared favorably Amazon’s AMZN AWS - Not much has happened in terms of market catalysts for today’s trading. There were no major economic reports or quarterly earnings results on tape this morning.
There was some change this afternoon Oracle’s ORCL Financial Q1 results came out after today’s close. In general, the tech giant slightly beat expectations on the bottom line, but only just matched it on the top. Earnings of $1.19 per share were up 5 percent, while $12.45 billion in quarterly sales were exactly in line with the Zacks Consensus. Cloud infrastructure reportedly grew +66% in the quarter – a higher margin than Oracle’s competition.
This is the fourth consecutive earnings release for the company, which has missed its bottom line only twice in the past five years. Yet shares are trading down -5% on this earnings news, probably because the enterprise software major was already trading at 22x earnings, and are up more than +50% year to date. It is an emerging player in the AI field, so it has benefited from the tech-bull windfall that companies like NVIDIA NVDA is the leader of the Nasdaq this year.
We’ll still be quiet for the most part tomorrow – no major economic prints are expected, Fed members are in a blackout period ahead of next week’s FOMC meeting, and no major companies are reporting earnings – this is the middle of the usual earnings season. is – until Thursday, when Adobe ADBE and Lennar Homes LEN has come out with quarterly results. That said, there is clearly an upside bias, although it is unclear how likely market participants are to ride this wave higher on such low data. Perhaps Wednesday’s CPI number will be the next catalyst.
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