FXEMPIRE
All
Ad
Advertisement
Advertisement
David Becker
Add to Bookmarks
apple store in new york

US stocks moved higher on turnaround Tuesday, initially driven by financials following stronger than expected earnings from Bank of America. Johnson and Johnson also beat on the top and bottom line but its shares whipsawed closing up but well off the highs of the session. The chip sectors continue to make new highs following news that Apple and Qualcomm of settled their royalty dispute. The SMH Semiconductor ETF surged more than 2%. Sectors were mixed led by a surge in financial. Healthcare and utilities bucked the trend. All three major averages settled in the black, with the Nasdaq outperforming. Energy shares were positive led by a rally in crude oil prices. 1.2%

Advertisement
Know where WTI Crude Oil is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Bank of American Beat on the Bottom Line

Bank of America Corp.’s Q1 profits increased led to a strong performance in its massive consumer business. Profits rose to $7.31 billion, compared with $6.92 billion a year earlier. Earnings per share were $0.70 compared to expectations that the second largest US bank would earn $0.66 per share. First-quarter revenue was $23 billion, flat year over year. The driver of the solid returns was the consumer banking business which increased 25% due higher interest rates and loan growth. Profit climbed 14% in its wealth-management unit, which added new clients in the quarter.

Advertisement

Apple and Qualcomm Settled Their Dispute

Apple and Qualcomm announced that they had settled their royalty dispute. The settlement includes a payment from Apple to Qualcomm as well as a chipset supply agreement, suggesting that Apple will buy Qualcomm chips for future iPhones. Qualcomm stock rose over 20% after the news broke, boosting its market cap by about $14.5 billion. The company announced that it expects incremental earnings per share of $2. The two companies started proceedings in a trial in federal court in San Diego on Monday, which was expected to last until May.

The FDA Order Boston Scientific to Stop Selling Surgical Mesh

The Food and Drug Administration ordered Boston Scientific and Coloplast to stop selling surgical mesh used for some pelvic operations. The agency said the companies did not reasonably show that their products were safe.  The companies have 10 days to submit their plans to withdraw the products from the market. Shares of Boston Scientific and Coloplast fell about 4%.

Netflix drops on Earnings Release

Netflix reported financial results after the closing bell. The company reported earnings of 0.76 per shares on 4.528 billion in revenues. The company beat on the top line but declined on softer than expected guidance. Netflix forecasts 5-million new subscripers in the Q2 compared to expectations of 5.5-million. The company also reported guidance of lower than expected earnings in the Q2. Separately, IBM reported earnings that were better than expected, but missed on the top line. IBM reported earnings of $2.25 per share compared to expectations of $2.22 per share. Revenue was 18.18 billion compared to expectations of 18.40 billion. The stock was down 3% in the aftermarket.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker