When most of the legacy stocks perform well, there is always a significant rub-off on the Dow Futures.
The United States stock market is seeing a great deal of mixed activity with the futures tied to the Dow Jones Industrial Average (INDEXDJX: .DJI) soaring up by inching upward by 0.01%. Investors are somewhat showing positivity for the market after digesting some of the earnings reports that have been published thus far.
Futures tied to the S&P 500 (INDEXSP: .INX) are also up 0.1% while those tied to the tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) also inked forward with a 0.33% gain. The sentiments shared by these futures are miles apart from the actual of both the S&P 500 and the Nasdaq Composite, both of which closed Wednesday’s trading session at a loss. Dow Jones on the other hand ended the day with a 9.88-point surge at 0.029% gain.
Tesla Inc (NASDAQ: TSLA), an American multinational electric vehicle manufacturer, was among the companies that shared its performance report for the past quarter, beating analysts’ expectations on both the top and bottom lines. While Tesla’s reported revenue came in at $24.32 billion above analysts’ expectations of $24.16 billion, its earnings per share price of $1.19 also surpassed the $1.13 projected by analysts.
The shares of Tesla Inc are responding to the positive earnings report with a 5.48% growth in the After Hours, paring off the slight bearish close to Wednesday’s trading session. Tesla also reported that it has not sold off its remaining Bitcoin (BTC) holding, despite the recent bullish spikes that the crypto industry has experienced thus far.
In continuation of the earnings season, the financial reports from most of the big operating airlines in the United States, including American Airlines Group Inc NASDAQ: AAL), and Southwest Airlines Co (NYSE: LUV) are also set to be announced today.
Dow Futures and the Broad Growth Advantage
When most of the legacy stocks perform well, there is always a significant rub-off on the Dow Futures. IBM (NYSE: IBM) recorded an impressive performance in beating projected revenue milestones from analysts impressed at a time when most SaaS firms are seeing a cushion across the board.
“Software up 8%, consulting up 9%, infrastructure up 7%. All three beat. The software line certainly was a very important piece because of what we got from Microsoft last night. So I think they’re taking share. Red Hat is absolutely taking share,” said Stephanie Link.
Despite this good outlook for IBM, the stock dipped slightly at the close of trading on Wednesday, bearish traction that it has also picked up in the After Hours session. With her conviction, Link said this dip presents another buying opportunity for her.
“The stock is very cheap with a good dividend yield. So if it is cheap for whatever reason, I’m a buyer,” She said.
With mixed expectations concerning the future of interest rates from the Federal Reserve, investors are still choosing to be relatively cautious with the market at this time.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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