Markets pulled back thanks to rotten earnings from GE and a US dollar that hit its lowest level in nearly 2 years. At the close the Dow was off 31 at 21,580 on heavier volume. The NASDAQ also fell a bit but volume here was light indicating that big investors are staying long. After hitting a hit last week the Dow lost about a quarter point this week.
Microsoft reported earnings which beat analyst estimates thanks to continued strength is the cloud computing segment. The company posted a 13% increase in revenue and a 42% increase in net income. The revenue rise was the biggest in a couple of years or at least since Steve Ballmer (aka the dancing frog) left after overpaying for just about everything. Shares hit an all-time high in early trading but then retreated and posted a small loss even though the gurus were upbeat about the report and increased price targets.
On the flip side shares of GE hit a 52 week low when the company posted a 12% revenue drop and a decline in net income by 52%. Going forward, CEO Jeff Immelt said conditions will be challenging and this sent investors for the exits like rats jumping from a sinking ship. GE has boat loads of cash yet they also have a huge unfunded pension liability. The oil and gas divisions continue to struggle while health and aerospace are doing well.
Credit card giant Visa posted solid numbers sending shares to a new all-time high. The revenue gain was a huge 26% while net profits grew 25%.