Morning Market Report - January 31, 2020
Futures Start Friday Lower
Amazon Crushes Earnings and Hits $1 Trillion Market Capitalization
Revenue grew 21% to $87.44 billion for the quarter, which indicates the company’s investments in speedier shipping are leading to more purchases. Amazon CEO Jeff Bezos said “more people joined Prime this quarter than ever before” and that the company now counts more than 150 million paid Prime members around the world. Amazon last gave an update on Prime subscribers in April 2018, saying it had more than 100 million members in the program.
- Earnings per share: $6.47 per share vs. expectations of $4.03 per share, according to analysts
- Revenue: $87.44 billion vs. expectations of $86.02 billion
- Amazon Web Services: $9.95 billion vs. expectations of $9.81 billion
Source: CNBC
IBM Trades Higher on New CEO Announcement
IBM shares traded higher last night after the company said Arvind Krishna is becoming its 10th CEO, replacing Virginia “Ginni” Rometty. The change is effective on April 6.
Jim Whitehurst, Red Hat’s former CEO, is becoming IBM’s president, the company said. IBM completed its $34 billion Red Hat acquisition in July.
Source: CNBC
Caterpiller Disappoints with 2020 Outlook
Profit for 2020 will be in a range of $8.50 to $10 per share, the company said in a statement Friday. Analysts had forecast $10.55 on average.
Exxon Trades Lower on Earnings Miss
- Adjusted earnings: 41 cents per share vs. 43 cents per share
- Revenue: $67.17 billion, versus $64.166 billion
- Upstream income: $2.19 billion vs. $2.44 billion
- Downstream income: $898M vs. $457.2M
Source: CNBC
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Coronavirus - China says death toll hits 213, total cases nears 10,000
China’s envoy to the United Nations said Friday that the number of confirmed coronavirus cases had risen to 9,809.