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Dow Jones rebounds: Apple, Amazon and Meta report results after hours

The Dow Jones Industrial Average rose Thursday as stocks recover from a dismal day for the major averages after the Federal Reserve held steady on rates but signalled that a March cut is unlikely.

The 30-stock Dow added 370 points, or 0.97 per cent, while the S&P 500 added 1.25 per cent. The Nasdaq Composite gained 1.3 per cent.

Ahead of the opening of the US markets, pharmaceutical company Merck turned in a fourth-quarter beat, which helped prop up the Dow, as its shares climbed more than 4 per cent.

Wall Street is coming off a poor session. The Dow fell 317 points, or 0.8 per cent, posting its worst day since December. The S&P 500 slid 1.6 per cent on Wednesday in its worst day since September. The Nasdaq Composite lost 2.2 per cent, its worst session since October.

Those losses come after Fed Chair Jerome Powell in his post-meeting conference discouraged investor hopes for a rate cut as soon as March, sending equities tumbling.

Bond yields slumped further, with the 10-year Treasury pulling back to a one-month low. The benchmark was last 10 basis points lower at 3.86 per cent.

In commodity-related news, executives from some of the top silver producers are pushing for the inclusion of the metal to the critical minerals list in Canada and the US. CEOs from 19 miners stated that this would position Canada as a supplier of choice for strategic allies, as per a letter sent to the Canadian Minister of Energy and Natural Resources.

Turning to US sectors, all closed higher overnight except for Energy. Consumer Discretionary was the best performer.

Investors will now turn their attention to the first jobs report of the year due out Friday morning.

After the bell, Meta, Amazon and Apple reported results.

As a result, Meta’s shares jumped over 10 per cent in after-hours trading on strong Q4 results, including its first-ever dividend of 50 cents per share, and solid user numbers surpassing expectations. The company also announced a $50 billion share buyback program.

Amazon’s Q4 results outperformed expectations, with earnings of $1.00 per share and revenue of $170.0 billion, driving a more than 3 per cent increase in the stock’s value during extended trading. Key highlights include $24.2 billion in Amazon Web Services revenue and $14.2 billion in advertising revenue.

Apple exceeded revenue and earnings estimates in its fiscal first-quarter report, with $119.58 billion in revenue, but it saw a 13 per cent decline in Chinese sales. Strong iPhone sales at $69.70 billion and an 11 per cent growth in the services business were highlights, while iPad sales fell 25 per cent and the wearables business declined by 11 per cent.

Futures

The SPI futures are pointing to a 0.4 per cent gain.

Currency

One Australian dollar at 8.30am was buying 65.74 US cents.

Commodities

Gold has gained 0.21 per cent. Silver has added 0.44 per cent. Copper has fallen 1.47 per cent. Oil has lost 2.43 per cent.

Figures around the globe

European markets closed lower. London’s FTSE fell 0.11 per cent, Frankfurt lost 0.26 per cent, and Paris closed 0.89 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei lost 0.76 per cent, Hong Kong’s Hang Seng added 0.52 per cent and China’s Shanghai Composite fell 0.64 per cent lower.

Yesterday, the Australian share market closed 1.20 per cent lower at 7,588.19.

Ex-dividends
Australian Foundation Investment Co (ASX:AFI) is paying 11.5 cents fully franked
Euroz Hartleys Group (ASX:EZL) is paying 1.75 cents fully franked
Nickel Industries (ASX:NIC) is paying 2.5 cents unfranked

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

Disclaimer

The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.