Breaking it: The epidemic continues to extinguish Microsoft’s business, which – as my CNN business associate Claire Duffy reports – helped companies get to work with the sale of computer and gaming systems, as well as cloud computing tools is.
“These were blankout numbers that would be another feather in the cap for the tech sector,” WebSch Securities analyst Daniel Ilyas told clients. “Cloud growth party is just beginning.”
Apple is also expected to show strong demand for electronic devices, especially given that it launched its new iPhone 12 in the previous quarter. Bank of America analyst Vamsi Mohan said in a research note this week, “Despite the subsequent launch of iPhones, demand for high-end models remains strong.”
Facebook, for its part, is set to get a boost from new shopping and video capabilities, which brought in significant revenue at home due to the number of people sticking to their phones and computers.
The company has been profitable for five straight quarters, marking the first time in its 17-year history. But now that this S&P 500 has been closely watched, there is new pressure to deliver. Guidance on 2021 deliveries will be important.
But strong results from Internet giants will only feed the pro-stock narrative, propelling the tech-heavy Nasdaq Composite to new heights. The matter of bubbles is only due to growth.
“We don’t think we’re in the final stages of a bubble in the overall stock market,” said John Higgins, chief economist at Capital Economics, in a note on Tuesday. “Nevertheless, we acknowledge that the surge in Nasdaq composites suggests that we may be in the early stage of at least one bubble, even as the index climbed partly from boosting earnings of companies in the technology sector Let the universal pandemic be justified. “
‘Unnatural, insane’ GameStop rally keeps going
Latest: GameStop’s stock exploded 93% on Tuesday, ending the day at $ 147.98. The bets against GameSpot are also being taken advantage of by traders running to buy stocks to limit their risk as a “low squeeze”.
Remember: GameStop shares, which are expected to lose money for the next two years, closed at $ 18.84 per share by 2020. It is clear that demand has completely fallen short of expectations about future earnings and implied value.
Instead, online commentators are re-watching what they see as David vs. Goliath Triumph against hedge funds and short sellers, with the joy of democratizing investment through no-fee trading platforms like Robinhood.
But dramatically investing in GameStop’s stock is causing growing concern in the community – even among those who were already sharper.
“If I put [GameStop] On your radar, and you did well, I’m really happy for you. However, what is going on now – there should be legal and regulatory consequences, “he tweeted on Tuesday. It is unnatural, insane and dangerous.”
US companies still struggling with capital riots
CNN surveyed about 280 companies in the Fortune 500 that supported 147 Republican lawmakers who objected to certifying President Joe Biden’s victory. About 150 responded, representing $ 14 million in donations to politicians during the 2020 cycle.
Among the findings: Many of the firms chosen to suspend campaign donations have made broader contributions across the board, rather than targeting Republican objections.
While 120 companies said they had decided to stop or end political giving in one form or the other, 73 said they would withhold donations to all federal candidates. Only 31 companies had specific timetables for how long they would suspend political activity.
Sheila Krumholz, executive director of the Nonpartisan Center for Responsive Politics, said how long the corporate revolt will last is an open question, especially since fundraising campaigns usually slow in the months following the election.
“Right now, it’s easy enough for them to sit back,” Krumholz said. “It is hard to imagine that this will happen through the primaries and general election in 2022.”
Even today: The Federal Reserve announces its latest policy decision at 2 pm ET, followed by a press conference led by Chair Jerome Powell. Any comments on the purchase of the Fed Bowder or raising interest rates will be under the microscope.
Coming Tomorrow: How did the US economy fare during the last three months of 2020? Investors will find out when the GDP number is posted.