Stock Market Today: The Beginning of a Tech Rebound?
Investors can expect a higher start to the stock market today, as the Dow Jones Industrial Average has gained 42 points in pre-market trading. Meanwhile, the tech-heavy Nasdaq Composite looks poised to recover some of the ground it has lost to the Dow and other indexes recently, and it can thank Apple and Facebook for that boost. Both companies easily beat earnings estimates last night. The stocks, which together account for over $600 billion in market capitalization, are each up by more than 5% as of 7:30 a.m EDT.
Meanwhile, dozens of companies reported quarterly earnings results this morning, including Verizon and Under Armour , which are on the move in pre-market trading.
Verizon today booked a 23% rise in adjusted earnings. Profit came in at $0.84 a share, a nice rise from the $0.68 it logged a year ago. Sales improved by 5% to hit $30.8 billion, which was slightly above analysts' expectations. The big milestone for Verizon in the quarter was closing its $130 billion deal to gain full control over its wireless business. In an earnings press release, CEO Lowell McAdam said that, although the quarter only included five weeks of fully integrated Verizon Wireless results, management is already energized by the "full access we now have to the significant cash flows" of that business. Indeed, wireless revenue grew by 6.9% as average monthly revenue per customer hit $160. That figure still has room to grow as smartphone penetration continues: those devices accounted for just 72% of Verizon's phone base, up from 70% a year ago. The stock was up 0.4% in pre-market trading.
Under Armour cleared some lofty earnings expectations this morning. Wall Street had been looking for a massive 27% quarterly sales boost to just under $600 million. But the performance clothing maker instead booked a 36% jump to $642 million. Earnings improved by $0.02 a share to reach $0.06 on a split-adjusted basis, also ahead of expectations, as profitability expanded by a full percentage point to 46.9% of sales. Under Armour's huge beat was powered by its apparel, footwear, and international businesses, which respectively grew by 33%, 41%, and 79%. After posting numbers like that, it's no wonder management sounds so confident: CEO Kevin Plank said there is "unlimited potential" ahead for the brand. Under Armour's stock was up 2.8% in pre-market trading.
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The article Stock Market Today: The Beginning of a Tech Rebound? originally appeared on Fool.com.Demitrios Kalogeropoulos owns shares of Apple and Facebook. The Motley Fool recommends Apple, Facebook, and Under Armour. The Motley Fool owns shares of Apple, Facebook, and Under Armour. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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