CNBC Daily Open: More mega tech earnings in spotlight

The share worth of Facebook inventory is seen on the Nasdaq inventory market in New York.

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This report is from immediately’s CNBC Daily Open, our worldwide markets e-newsletter. CNBC Daily Open brings traders on top of things on every thing they should know, irrespective of the place they’re. Like what you see? You can subscribe here.

What you could know immediately

Wall Street rallies
Wall Street
closed on a positive note Thursday. The main indexes clawed again good points from the earlier session, which noticed a brutal sell-off after the Federal Reserve signaled {that a} March rate cut is unlikely. The 30-stock Dow closed increased on a recent report, which additionally wiped its losses from a day earlier. The S&P 500 added 1.25% and the tech-heavy Nasdaq additionally gained.

Meta soars
Facebook father or mother Meta shares surged on better-than-expected results and a first-ever dividend cost. The outcomes confirmed the corporate’s on-line advert enterprise continues to rebound from a brutal 2022. Part of Meta’s monetary restoration was additionally pushed by Chinese retailers.

Apple’s China woes
Apple reported fiscal first-quarter earnings that beat estimates for income and earnings. But it posted a 13% decline in gross sales in China, one in all its key markets, which led to a slide in its inventory in after-hours buying and selling. Apple‘s outlook additionally steered weak iPhone gross sales.  

Amazon bullish
Amazon gave optimistic guidance for the primary quarter as the corporate reported fourth-quarter outcomes that simply topped estimates. Sales at Amazon Web Services was up 13% in the fourth quarter, in line with Wall Street’s forecast. The inventory spiked 7% in prolonged buying and selling.

[Pro] Ford rides to the highest
Morgan Stanley’s analyst Adam Jonas has named Ford as the funding financial institution’s prime choose amongst U.S. automakers. He added chopping again spending plans for electrical autos may truly assist Ford to impress Wall Street traders.   

The backside line

It was a wild day of earnings for Big Tech firms. 

Three “Magnificent 7” outcomes hogged the headlines: Meta, Amazon and Apple. 

Wall Street appeared significantly impressed with Facebook father or mother Meta’s outcomes.

Shares of Meta surged 15% after the social-media giant defied analysts’ estimates. It posted better-than-expected fourth-quarter earnings of $5.33 per share on income of $40.11 billion. The firm additionally declared its first-ever dividend payment, pegged at 50 cents.

Investors additionally cheered Amazon’s earnings, which easily topped Wall Street’s expectations. The ecommerce large additionally offered a powerful outlook for the present quarter. The inventory jumped 7% in prolonged buying and selling.

“This This fall was a record-breaking Holiday procuring season and closed out a sturdy 2023 for Amazon,” CEO Andy Jassy stated in a press release. “As we enter 2024, our groups are delivering at a fast clip, and we’ve got quite a bit in entrance of us to be enthusiastic about.”

But Apple did not get the identical therapy regardless of posting stellar outcomes.

It additionally exceeded estimates, reporting income progress for the primary time in a 12 months. But shares of the tech titan slid greater than 2% in extending buying and selling after it posted a 13% decline in gross sales in China. Apple’s outlook suggesting weak iPhones gross sales could have additionally dissatisfied traders.

Well, this wraps up earnings season for tech’s mega cap firms.

Investor’s focus will shift to a different information level on Friday with the discharge of January’s U.S. jobs report, for clues on the energy of the labor market and the broader economic system.  

 — CNBC’s Jonathan Vanian contributed to this report.

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