U.S. equities continue to shrug off the overnight funding challenges being seen in the repurchase market, with the Federal Reserve having to inject liquidity for the third consecutive day. This is raising concerns that Wednesday’s interest rate cut wasn’t enough and that a restart of quantitative easing is on the horizon.
Obviously, this would be cause for huge excitement for investors as cheap money has been the primary motivator of higher asset prices over the last 10 years. It’s no surprise then that key large tech stocks are perking up nicely as momentum returns.
Apple (NASDAQ:AAPL) shares pushed to new highs on Thursday as the new iPhone 11 prepares to go on sale. This move takes the stock up and out of a consolidation range going back to early May and returns prices to the highs seen last September — recovering completely from the 3% decline into the lows set in December.
The company will next report results on Oct. 31 after the close. Analysts are looking for earnings of $2.83 per share on revenues of $62.8 billion.
Microsoft (NASDAQ:MSFT) shares are perking up as well, breaking up and out of a four-month consolidation range to push to new highs — continuing an impressive rally out of its 2015 lows that has seen a 2.5x return to shareholders. Management recently announced a dividend increase and a $40 billion share repurchase program.
Earnings will next be reported on Oct. 23 after the close. Analysts are looking for earnings of $1.24 per share on revenues of $32.2 billion.
Snapchat (NYSE:SNAP) parent Snap is enjoying a share price push above its 50-day moving average to break up and out of a three-month downtrend pattern and further extend a rally out of its December lows that has returned a 3x gain to shareholders.
The company will next report results on Oct. 22 after the close. Analysts are looking for a loss of five cents per share on revenues of $435.3 million.
Facebook (NASDAQ:FB) shares are challenging their 50-day moving average and likely preparing a push to its late July highs near $205. Such a move would be worth a gain of nearly 8% from here. The threat of regulation continues to hang over the company as it prepares to launch its Libra currency.
The company will next report results on Oct. 30 after the close. Analysts are looking for earnings of $1.86 on revenues of $17.3 billion.
eBay (NASDAQ:EBAY) shares are holding above their 50-day moving average and look set for a breakout push to challenge prior highs set back in early 2018 near the $44-a-share level. Investor interest is surrounding a possible spin off of its StubHub sports ticketing business.
The company will next report results on Oct. 16 after the close. Analysts are looking for earnings of 64 cents per share on revenues of $2.7 billion.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.