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S&P 500 ends higher, supported by Microsoft

Economy Apr 27, 2022 06:40PM ET
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© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., April 14, 2022. REUTERS/Brendan McDermid/File Photo

By Bansari Mayur Kamdar and Noel Randewich

(Reuters) - The S&P 500 ended higher on Wednesday following a steep drop the day before, with strong revenue forecasts from Microsoft and Visa helping to alleviate worries about slowing global economic growth and rising interest rates.

Microsoft Corp (NASDAQ:MSFT) rallied after the software heavyweight late on Tuesday gave a strong revenue forecast, while payments network Visa Inc (NYSE:V) jumped after it predicted revenue above pre-pandemic levels.

Tuesday's gains in the S&P 500 and Dow Jones Industrial Average followed a steep selloff the day before that saw the Nasdaq drop to its lowest close since December 2020 as investors worried that the U.S. Federal Reserve might raise interest rates more than expected in its fight against inflation.

The S&P 500 communication services index fell 2.6%, with Google-parent Alphabet (NASDAQ:GOOGL) dropping 3.7% after it reported that quarterly YouTube ad sales slowed and its revenue missed expectations.

"What we've really been seeing is that misses are being punished a little more severely, but that beats are also being rewarded," said Rob Haworth, a senior investment strategist at U.S. Bank Wealth Management in Seattle. "With interest rates where they are and the 10-year Treasury testing 2.8%, I think there is a big question about growth and valuations."

In extended trade, Facebook-owner Meta Platforms Inc rose 9% following its quarterly report. During the trading session it had declined 3.3%.

GRAPHIC: S&P 500's busiest trades https://fingfx.thomsonreuters.com/gfx/mkt/zdpxogqkmvx/SPX_by_busiest_trades.png

Planemaker Boeing (NYSE:BA) Co tumbled 7.5% after it said it was halting production of 777X jets through 2023 due to certification problems, as well as weak demand for the wide-body jet.

Nearly a third of the companies on the S&P 500 have reported results this week. Overall, earnings have been better than expected, with nearly 80% of the 176 companies in the S&P 500 that have reported so far beating Wall Street expectations. Typically, only 66% of companies beat estimates.

The Dow Jones Industrial Average rose 0.19% to end at 33,301.93 points, while the S&P 500 gained 0.21% to 4,183.92.

The Nasdaq Composite dropped 0.01% to 12,488.93.

Tesla (NASDAQ:TSLA) Inc recovered 0.6% following a 12% slump on Tuesday related to concerns that Chief Executive Elon Musk may have to sell shares to fund his $44 billion buyout of Twitter Inc (NYSE:TWTR).

Toymaker Mattel Inc (NASDAQ:MAT) surged almost 11% after a source told Reuters it was exploring a sale.

Audio streaming platform Spotify Technology SA (NYSE:SPOT)'s U.S.-listed shares tumbled more than 12% following a downbeat current-quarter revenue forecast.

Volume on U.S. exchanges was 12.1 billion shares, compared with a 11.7 billion average over the last 20 trading days.

Declining issues outnumbered advancing ones on the NYSE by a 1.26-to-1 ratio; on Nasdaq, a 1.44-to-1 ratio favored decliners.

The S&P 500 posted 3 new 52-week highs and 64 new lows; the Nasdaq Composite recorded 25 new highs and 724 new lows.

S&P 500 ends higher, supported by Microsoft
 

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Comments (12)
Milan Shukla
Milan Shukla Apr 27, 2022 8:01PM ET
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Exactly. Took advantage of gains in morning session to reduce portfolios size sold most of my stocks. Now holding on cash for July to re-enter. Good luck
Mitchel Pioneer
Mitchel Pioneer Apr 27, 2022 1:53PM ET
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Ah yes, goes negative, then miraculously soars 400 points.  How convenient.  Half the loss vanishes today, the other half tomorrow.  Greatest financial fraud in history, and BIGGEST INVESTMENT JOKE IN THE WORLD.
Gary Moses
Gary Moses Apr 27, 2022 1:53PM ET
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Nope. It will prabably loose tommorow. Think about it. The Market never really Gains the whole amount back. When it looses , it only Gains a little of it back.
Santosh Kumar
Santosh Kumar Apr 27, 2022 1:14PM ET
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dear fellow s u select Jo Biden now why criyin
Kit Ali
Kit Ali Apr 27, 2022 12:25PM ET
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why do we only get BS comments here?
me ish
me ish Apr 27, 2022 12:17PM ET
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Why so many beat earnings estimates - firstly, ANALysts aren't very good at guestimating and they almost certainly didn't factor in the vast amounts of stimulus checks and savings now being pretty much used up by the end of Q1 - What latest figures do show is that savings rates are now below pre Plandemic levels and credit card debt is shooting up - all the whilst Visa and Mcard are increasing their swipe fees to ensure consumers get hammered by even higher inflation - so of course Visa's figures look good - they are price gouging and making the most of the inflation story - as are many US corporations that are using the inflation story to bolster profits massively - this is theft on the consumer - and sure enough all the execs have been selling out of all their shares over the past four months whilst the pension funds and indiividual funds of consumers are piling in and buying the dip - to then hold the bag!!!
Ciprian Gal
Ciprian Gal Apr 27, 2022 12:17PM ET
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are you an investor or bag holder? don't blame it on the company management which did great under the current circumstances
Casador Del Oso
Casador Del Oso Apr 27, 2022 12:04PM ET
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Forgot other earnings misses already.
Rabindra Thapa
Rabindra Thapa Apr 27, 2022 12:03PM ET
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Why market manipulate by fed
Cyril Sia
Cyril Sia Apr 27, 2022 10:14AM ET
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Just feeling I'm in the alien market nowadays.
John Martin
John Martin Apr 27, 2022 9:57AM ET
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“Higher” while spx just up below 2% lol
James Wills
James Wills Apr 27, 2022 9:31AM ET
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#lolcats
 
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