President Donald Trump pulled the United States out of the Paris Climate Accord on Thursday afternoon — a move that didn’t do much to move the markets after the bell, but that did manage to send oil prices down amid a worry that the glut in global oil supplies will only continue. Thursday still managed to be a broad up day, though, with the S&P 500 finishing 0.8% better to close at fresh all-time highs.
Here’s a look at why.
Alphabet Inc (GOOGL)
Will today be the day?
GOOGL shares are headed just fractionally higher on Friday morning, but it won’t take much more than that to get Alphabet to the $1,000 mark, which it has been flirting with over the past week or so.
Pushing optimism for the stock is news that its Waymo self-driving vehicle unit is testing out autonomous truck technology. BuzzFeed reported that it saw a Waymo truck — a Class-8 semi truck — in a picture, then later confirmed this with a Waymo spokesperson.
Alphabet and Waymo are currently butting heads in court with Uber and truck subsidiary Otto, founded by former Alphabet executive Anthony Levandowski and later gobbled up by Uber. Alphabet claims Levandoski stole thousands of files with proprietary information.
As for GOOGL stock itself? Alphabet is currently in something of a no-man’s land, with no technical resistance overhead. However, shares are still trying to work off overbought conditions in its Relative Strength Index.
And of course, the $1,000 mark, while not technically significant at this point, marks a level of psychological resistance — one that Amazon.com, Inc. (NASDAQ:AMZN) has become intimately familiar with over the past few days.
Workday Inc (WDAY)
WDAY shares are on the slide despite a strong beat on the earnings front.
WorkDay generated an operating loss of $60.2 million. However, adjusted net income came to 29 cents for its first quarter — a 480% year-over-year surge that clobbered Wall Street expectations for 16 cents per share. Revenues were also robust, improving 38% to $480 million to easily top estimates for $467.3 million. That was powered by a roughly 43% improvement in subscription revenues, which hit $399.7 million for the quarter.
There wasn’t much to complain about on the outlook front, either, as Workday said Q1 subscription revenues would hit $421.5 million (38% growth), versus expectations for $411.5 million.
Meanwhile, the company generated $180 million in operating cash flows, which came out to nearly $150 million in free cash flows.
This simply may have been a sell-the-news event, as WDAY shares had already sprinted 54% higher in 2017, including a couple of days’ worth of gains heading into Thursday night’s report. Workday stock is off about 3% this morning.
Broadcom Ltd (AVGO)
AVGO stock is heading solidly higher on Friday morning after the company put up Street-beating results for its fiscal second quarter.
Braodcom reported an 18% jump in revenues to $4.201 billion, topping expectations of $4.109 billion. Meanwhile, net income surged 49% to $1.67 billion,or $3.69 on a per-share basis — much better than the $3.50 per share estimate from Wall Street analysts.
Q3 guidance also impressed, with Broadcom’s outlook for $4.45 billion at the midpoint coming ahead of expectations for $4.27 billion.
As a result, UBS analyst Stephen Chin reiterated his “Buy” rating on AVGO stock and upgraded his price target from $245 to $265. He further sees potential upside in content from Apple Inc. (NASDAQ:AAPL).
The beat-and-raise quarter is propelling AVGO shares 5% higher this morning, which will bring Broadcom’s year-to-date gains close to 40%.
As of this writing, Robert Martin did not hold a position in any of the aforementioned securities.