Corporate earnings continue to roll in with positive results and good outlooks. This has helped keep the markets afloat as trade tariffs still have investors ambivalent. Trading volume was low and the Dow traded back and forth and mixed throughout the day to ultimately finish down 6 points and close at 25,058. The Chinese Yuan also lost more value today, as China continues to devalue the currency to protect against trade tariffs. The Yuan has lost about 8% of its value in the last three months.
“Micropoop” reported strong earnings after the bell yesterday. They beat all expectations and saw year over year growth for both earnings and revenue. Revenue came in at $30.1 billion for the quarter and $9.6 billion of that was from their cloud services — this was a 23% increase from the same quarter last year. Under the leadership of Satya Nadella, Microsoft has established themselves as leaders in the cloud industry, right behind Amazon but in front of Google. We may have to start calling them “Microsoft-as-a-cloud” now.
Raw materials continue to kick booty in the market and Cleveland Cliffs added to that story when they reported earnings this morning. Cliffs was up over 13% during the day, closing up about 12.5%, after they reported 38% revenue growth in iron ore pellets. More importantly they are seeing demand drive up their sales price and also believe that they will sell another 500K tons than they previously expected. CEO, Lourenco Goncalves, was very optimistic saying he expects a “level of cash flow that they have not seen in years”.