Markets News 

Microsoft could beat Apple to being the first $1 trillion company

“If Microsoft’s cloud margins are close to what Evercore is predicting, a $1 trillion market capitalization isn’t very far-fetched at all” writes Timothy Green for businessinsider.com. If you had wondered out loud five years ago whether Microsoft  could be the first public company to reach a $1 trillion valuation, you would have been laughed out of the room.Analysts are Evercore ISI believe that Microsoft could hit a $1 trillion valuation by 2020 or sooner, driven by the company’s cloud and subscription businesses. Source: businessinsider.com Share This:

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Cramer’s game plan: Strong earnings will drive the market higher

“As the bull market surged higher despite holdups in the Republican tax overhaul, CNBC’s Jim Cramer took the temperature of the market to see if the strength could continue” writes Elizabeth Gurdus for cnbc.com. “We still don’t even know what’s finally going to happen in Washington, but as I told you last night, we’re in a ‘damn the torpedoes, full speed ahead’ moment … because of corporate earnings — witness the pin action from Costco and Adobe,” the “Mad Money” host said. Source: cnbc.com Share This:

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Micron earnings: Bullish sentiment remains on horizon for memory chips

“Earnings: Of 24 analysts polled by FactSet, Micron is expected to report consensus earnings of $2.19 a share, up from the $1.74 a share consensus when the quarter began” writes Wallace Witkowski for marketwatch.com. On average, analysts have a consensus $54.22 price target, nearly 28% above Friday’s closing price.Estimize, a software platform that uses crowdsourcing from hedge-fund executives, brokerages, buy-side analysts and others, calls for an adjusted earnings consensus of $2.26 a share.He noted: Cowen analyst Karl Ackerman, who has a buy rating and a $43 price target, had this…

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Oracle shares drop as cloud growth, outlook miss Street view

“For the second quarter, total cloud revenue rose 44% to $1.52 billion while software-as-a-service revenue grew 55% to $1.12 billion” writes Wallace Witkowski for marketwatch.com. The cloud revenue forecast appeared even more grim.Analysts had forecast total cloud revenue of $1.56 billion, and SaaS revenue of $1.14 billion.Catz said cloud revenue should rise 21% to 25%, while analysts are forecasting $1.69 billion, or an increase of 42%.Oracle’s second-quarter growth in the cloud did not hit Wall Street targets, and neither did its forecast for the third quarter. Source: marketwatch.com Share This:

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Oracle topped Wall Street targets, but the stock is sinking over 4%

“Oracle’s cloud computing software and services compete head-to-head with the likes of Amazon Web Services and Microsoft Azure, which are seen as the leaders in the enterprise cloud market” writes Matt Weinberger for businessinsider.com. Amazon Web Services is expected to do $18 billion in revenue this year, while Microsoft’s cloud computing business is on a $20 billion annualized run rate.In a press release, Oracle attributes much of its growth to its cloud computing business, which it says grew 44% from the year-ago period to revenues of $1.5 billion.Oracle CEO Mark…

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Wall Street analysts got earnings right, but undershot optimism

“The average earnings per share for the S&P 500 was about $127” writes Anora M for marketwatch.com. According to FactSet, the bottom-up consensus estimate for the S&P 500 in December of 2016 was $133.Such a price target suggests that analysts were assuming investors would pay 18.8 times forward earnings. Source: marketwatch.com Share This:

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‘The gap has narrowed’: UK unemployment is close to a record low — and wage growth is finally picking up

“That means that while earnings growth may be picking up, it is still lagging inflation and UK workers are seeing their real wages continuing to decline” writes Will Martin for businessinsider.com. LONDON – UK unemployment remains at its joint lowest level since 1975, while wage growth is beginning to pick up, according to the latest data from the Office of National Statistics. “There has been a slight pick-up in pay growth in cash terms, which means that although earnings are still growing less than inflation, the gap has narrowed.”.  Source:…

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2017 has been a stellar year for Asian stocks, and HSBC says there are more gains to come

“So expected earnings growth looks set to be a little lower next year, but what about potential growth in PE multiples?” writes David Scutt for businessinsider.com. The highest 2018 growth is, for now, expected in India, Indonesia and China.” This table from HSBC shows current market expectations for earnings growth by individual market. However, even with the risks, HSBC still thinks there’s plenty of fuel in the tank to propel stocks even higher.2017 has been a very good year for Asian stocks. Source: businessinsider.com Share This:

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