Thursday, October 22, 2009

Amazon Blows Away Estimates After Huge Up Day

Markets were mixed early, but a day-long rally, helped along by earnings results from key Dow components including AT&T (T), McDonald's (MCD) and others, pushed stocks back near recent highs after yesterday's late-day sell-off.

After the bell, online retailer Amazon (AMZN) blew away estimates for the quarter, posting earnings of 45 cents per share on $199 million profit, far ahead of estimates of 33 cents per share and well ahead of the prior year's 3rd quarter of 27 cents and $118 million in profits.

On a day which witnessed the largest number of S&P companies reporting to date, stocks flew higher and prospects on the back of Amazon's earnings look especially juicy for technology companies. Microsoft, the undisputed world's leader in personal computer operating systems, reports before the bell on Friday.

Dow 10,081.31, +131.95 (1.33%)
Nasdaq 2,165.29, +14.56 (0.68%)
S&P 500 1,092.91, +11.51 (1.06%)
NYSE Composite 7,182.91, +75.70 (1.07%)

Advancing issues, which were beaten down earlier in the day, handily beat decliners, 4142-2301. There were 263 new highs and 43 new lows, both numbers negatively affected by the trading range of the past week, between 9500 and 10,100. Volume was in line with most active days over the past two weeks.

NYSE Volume 5,985,040,500
Nasdaq Volume 2,282,756,500

Commodities were held down after strong recent advances. Oil for December delivery fell 18 cents, to $81.19. Gold was clipped $5.90, to $1,058.60, while silver slid 28 cents, to $17.55.

More earnings are being released after hours and early on Friday. The markets are set to record yet another week of gains, though this week will be rather muted in comparison to others unless markets soar again on the final day of the week.

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