A huge day for the bulls. To understand this kind of rally, you need to look rally, you need to look at the market through the eyes of a gigantic hedge fund manager, one that takes huge swings that can impact the market, especially when there are so many likeminded funds doing the exact same trade. The average having done nothing so far this year and were already middle of march and with the biggest move being that 6 swoon. The hedge funds, the ones that like to bet against the market, theyre feeling mighty emboldened. These pessimists hadnt been hurt all that badly when the market rallies and declines in individual stocks have been pretty staggering, particularly industrials and the big negatives have been stemming from overseas and when its overseas, not the United States and when its overseas, the fear factor is usually much higher out of ignorance. Its a little silly that the proximate cause of this years biggest decline was caused by some sort of problem in turkey or was argentina
This event isic canning off right now. New Ceo Satya Nadella making his first appearance in front of media and wall street for that matter. Were hearing theres about 100 people upstairs, standing room only. Expectation, hearing from sources now, mobile, cloud, two areas where microsoft has been lag on competitors. Also, widely expected to hear about office 4 ipad today one of the things sources telling us there should be big news around 1 20 eastern. Keeping a close ear out for that. In the meantime, seems wall street is investors are hopeful about nadella. Stock up about 8 since he took the reins from Steve Ballmer last month. With this in the meantime, you go upstairs and walk around at the event, theyve colorcoded m ms to look like the microsoft logo. Back to you. Thank you so much, morgan. Diving deeper into what is a major event for this company. Jon fortt joining me here on the floor of the nyse and Matt Mcilwain with us as well. Both jon and matt correctly called early in the ra
Point of earnings season. A good start. Earnings beat for microsoft, despite falling pc sales and once again, its all about the cloud. Amazon reports strong sales growth. Who cares about margins. Customers dont blink at a price hike for prime. Drum beat of new services continues. Analyst notes this morning are pressuring the stocks. Starbucks up, earnings as analysts expected. Exclusive with Howard Schultz ceo and chairman coming up, coffee, Digital Payments and why lunch is next. Ford is slipping despite strong sales. Profit did miss analyst estimates. Fords margins hit by higher production costs. Shares are dropping. Well hear from bob shanks. First up, microsoft did Beat Estimates by a nickel, fiscal had thirdquarter profit of 68 cents a share. Company was helped by momentum in Cloud Services as total commercial cloud revenue more than doubled in the period and last night during his first earnings call, nadella spoke about betting on the cloud. We will continue to invest in our clou
S p climbing. 6 . These are the two most vital groups to any advance because frankly theyre the classic leaders of any advance. Theres so many Financial Institutions out there, so many Tech Companies involved in semi conductors, communication, big data. True hardware plays that its really difficult to crush the entire market when these two groups are going strong. Sometimes it helps to analyze the market as though its made up of a series of neighborhoods. Right now the socs and financial eotf are fantastic neighborhoods with sharply rising property values. When you look at the market this way its easy to see why a bad house in a terrific neighborhood can be much better than the best house in soso neighborhoods. Consider two stocks. Citigroup and intel. Two stocks that seem pretty hopeless before the feds announcement yesterday which some interpreted as indicating that the relatively imminent end of the federal reserves Bond Buying Program is upon us. Then of course a rapid return to ra
Matters. Yeah. Value of all things, its playing a role. I mean a longterm value. And its springing up everywhere, unlike the real spring which is nowhere to be found. Thats why the dow climbed 91 points. And the nasdaq, which last i looked doesnt add a lot of value. Therefore, advanced only. 19 . Look, i know it sounds like im being facetious here. Doesnt the stock market always care about value . Honest, simple answer is no. Plenty of times the predominant investors, the ones that matter because they move stocks only care about Growth Stocks. At those moments, value gets ignored because value doesnt move unless management does something drastic like a breakup, spinoff. Growth rolls higher as the managers keep reaching and reaching, paying ever higher prices. Thats the kind of market weve had for a very long time. But over the last week, theres been a remarkable transformation. The aggressive buyers are now the ones seeking value if the economy gets better, right . And theyre taking no