US Stock Market Overview – Stocks Rose Led by Real-estate Energy Bucked the TrendTelsa beat on the Top and Bottom Line
US stocks moved higher on Wednesday driven by defensive sectors such as real-estate and utilities. Energy bucked the trend. The dollar continues to slide which paved the way for higher gold prices. US yields were also under pressure. The U.S. ordered the closure of the Chinese Consulate in Houston, accusing China of extensive interference in domestic affairs which was an escalation of bilateral tensions that Beijing called outrageous and unprecedented. US existing home sales jumped June according to the National Association of Realtors. Tesla reported earnings after the bell, and shares jumped 6% in after-hours trading. Microsoft also reported earnings and shares dipped 3%.
US Existing Home Sales Rose More than Expected
US existing home sales jumped nearly 21% in June compared with May, according to the National Association of Realtors. It was the largest monthly gain since the Realtors began tracking the data in 1968 and came after sharp declines over the previous three months due to the coronavirus pandemic. Sales were still 11.3% lower annually.
Tesla Reports Q2 Earnings
Tesla just reported its Q2 results which were better than expected. Earnings per share rose by $2.18 versus 0.03 expected. Revenue came in at $6.04 billion compared to $5.37 billion expected. Net income was $104 million. Tesla also reported its first full year of profitability on a GAAP basis, which means it can now be considered for inclusion on the S&P 500 index.
Microsoft Beat on the Bottom Line
Microsoft reported better than expected earnings and revenue. The company reported Earnings per share of $1.46 versus $1.34 per share expected. Revenue came in at $38.03 billion versus $36.50 billion expected. Microsoft’s overall revenue grew 13% on an annualized basis in the quarter, which ended on June 30. Revenue went up 15% in the prior quarter.