Trump said he doesn't see a recession after the bond market spooked investors and the Dow suffered its worst day of the year last week.Marketsread more
The U.K. prime minister prepares to meet his German and French counterparts this week.Europe Politicsread more
Amazon is raising seller fees for thousands of small and medium-sized businesses in France because of a new digital tax passed by the French government.Technologyread more
U.S. stock index futures point to a higher open on Monday morning as the White House sought to calm investors over growing concerns about the U.S. economy.US Marketsread more
Ahead of the deadline, U.S. President Donald Trump told reporters that Huawei was a national security threat.Technologyread more
Bianco Research's James Bianco suggests Wall Street is desperately looking for a signal that a 50 basis point cut is coming next month.Trading Nationread more
Baidu is gearing up to release its second-quarter earnings on Monday with the market expecting a sharp decline in profit.Technologyread more
Americans now say they approve of free trade by 64%-27%, a margin of better than two to one. That's up from 57%-37% early in Trump's presidency, and 51%-41% near the end of...Politicsread more
Stocks in Asia rose on Monday as U.S. Treasury yields bounced higher after plunging last week.Asia Marketsread more
The problem with tanking equities lies elsewhere, writes Michael Ivanovitch, because traders see no end to America's unfolding trade disputes with Europe and China.World Economyread more
Beijing wants to use reforms to support a slowing economy.China Marketsread more
Microsoft shares jumped as much as 5.1% on Thursday, pushing the company past $1 trillion in market value on a better-than-expected earnings report.
The stock needed to hit $130.51 to reach the trillion-dollar mark for the first time. It traded as high as $131.37, though it bounced around throughout the day before closing at $129.15 for a market cap of about $990 billion.
After regular trading on Wednesday, Microsoft reported fiscal third-quarter earnings of $1.14 per share, excluding certain items, topping the $1.00 estimate of analysts surveyed by Refinitiv. Revenue climbed 14% to $30.6 billion, exceeding the average estimate of $29.84 billion.
Microsoft and Facebook kicked off tech earnings season, with both companies surpassing expectations. Facebook shares rose more than 6% on Thursday. Amazon reports after the bell, followed by Alphabet and Apple early next week. Expectations are high for the tech sector, after the Nasdaq climbed to an intraday record Wednesday.
Sales growth at Microsoft is being driven by the transition to the public cloud as more large businesses offload their servers and data storage to Azure infrastructure. Gross margin, or the percentage of revenue left after accounting for the costs of goods sold, was 66.7%, up from 65.4% a year earlier. Net income rose 19% to $8.8 billion.
Azure's revenue surged 73%. Microsoft's commercial cloud business, which includes Azure, grew 41% in the quarter to $9.6 billion. While Azure is still much smaller than rival Amazon Web Service, Stifel analysts say it's growing faster than AWS was at a similar size. And analysts at Mizuho Securities said Azure's growth was well above their forecast for 68% expansion.
"We continue to be very bullish on Azure's positioning," the Mizuho analysts wrote in a note after the earnings report. The firm has a buy rating on the stock.
Microsoft said on the earnings call that revenue in the fiscal fourth quarter will be $32.2 billion to $32.9 billion. Analysts expected $32.6 billion, according to Refinitiv.
In addition to growth in cloud infrastructure, Microsoft is also benefiting from the move to cloud applications, pushing users of its traditional productivity products like Word and Excel to the cloud-based Office 365 suite. Commercial sales of Office 365 increased 30%. And LinkedIn, the professional networking site that Microsoft acquired for more than $26 billion in 2016, continues to grow much faster than the overall business. LinkedIn's revenue climbed 27% in the quarter.