Saul Lob | AFP | Picture of Getty
Stock futures jumped on Thursday night, preparing Wall Street for the end of the week on a high note, as some of the largest stocks of technology – Facebook, Amazon, Alphabet and Apple – reported quarterly results that beat high expectations.
Futures on the Nasdaq 100 traded up 1.2%. The average futures on the Dow Jones Industrial Average scored 237 points, or 0.9%. Futures on the S&P 500 rose 0.8%.
Apple reported an explosion in the quarter, total sales increased by 11%. Apple also announced a 4-on-1 split.
“Apple’s earnings report has been exciting,” said Andrew Smith, chief investment strategist at Delos Capital Advisors. “Double-digit revenue growth during the quarter in which much of the U.S. economy took place is extraordinary. This earnings report shows that Apple is firing at all cylinders. shares, which was the icing on the cake for investors. “
Amazon, meanwhile, traded 5.3 percent higher when the company saw sales increase during the coronavirus pandemic. Facebook shares rose more than 7% after the bell, as the social media giant noted an 11% increase in revenue, even against the backdrop of the recession of the coronavirus pandemic. The company also issued stronger-than-expected sales instructions for the current quarter.
Google’s parent alphabet also posted better-than-expected results, with a margin of 0.4%. Stock performance has been subdued compared to other Big Tech names as the company’s total revenue has declined over its history. Revenue from Google Cloud was also slightly below analysts’ expectations.
“The numbers were surprising in terms of expectations,” said Peter Bukvar, chief investment officer at Bleakley. “We’ll see after their conference calls at what prices and what not.”
With these earnings, the four shares intended to add about $ 200 billion to the total market, resulting in more than $ 5 trillion.
This year, Big Tech became a fan on Wall Street. Amazon and Apple grew by 65.2% and 31% respectively by 2020. Facebook and Alphabet grew by more than 14% during this period.
Both the Dow and the S&P 500 fell on Thursday after the US government released data showing the largest quarterly decline in gross domestic product in the country. The Dow fell more than 200 points and the S&P 500 ended the day by 0.4%. During the second quarter, US GDP shrank by 32.9%, surpassing the record decline since mid-1921.
– CNBC’s Patti Domm contributed to this report.
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