Fred Imbert, Silvia Amaro
Around 7:25 a.m. ET, Dow Jones Industrial Average futures indicated a gain of more than 45 points at the open. S&P 500 and Nasdaq 100 also pointed to slight gains.
Microsoft reported earnings per share of $1.38 on revenue of $33.06 billion for the previous quarter. Analysts polled by Refinitiv expected a profit of $1.25 per share on revenue of $32.23 billion. Microsoft’s strong quarterly performance was driven in part by Azure, its cloud business, which saw revenues grow by 59% on a year-over-year basis. The stock rose about 1% in the premarket.
“MSFT delivered strength across the board with no blemishes and importantly gave stronger than expected December quarter guidance which speaks to an inflection point in deal flow as more enterprises pick Redmond for the cloud,” Dan Ives, an analyst at Wedbush Securities, said in a note.
Tesla shares spiked more than 18% after the electric car maker posted a surprise quarterly profit. The company also told investors its new Shanghai factor is “ready for production.”
NBCUniversal-parent Comcast, Dow Inc. and PayPal also traded higher on earnings that beat analyst expectations. Twitter, however, plunged about 20% after posting disappointing earnings.
More than 31% of S&P 500 companies have reported quarterly earnings thus far, with nearly 80% of them posting results that beat analyst estimates, according to FactSet.
Amazon, Intel and Visa are among the companies scheduled to report after the bell as investors slog through the busiest day of the earnings season.