US stock index Dow Jones Industrial Average traded up 302 points (about 1.25 percent) on Wednesday as Boeing and Apple both beat expectations. Whether related to the Dow Jones bump, both the Standard & Poor’s index and the Nasdaq Composite saw increases of 0.6 and 1 percent, respectively.
Boeing saw a nearly 7 point bump on the day after sharing that quarterly results easily beat previous expectations. In addition, the aerospace giant posted annual revenue in excess of $100 billion for the first time in the company’s history, which also led to improving earnings guidance for 2019.
On the other hand, Apple found a moderate increase of 4.8 percent after the technology company reported quarterly profit had also beat earlier estimates. Even as iPhone sales—the company’s leading product—did not meet its sales estimates, Apple’s overall quarterly revenue still beat out analyst expectations. The report comes at a time following a cut to revenue guidance, as Apple cites a slowdown in China as the cause.
Regarding these numbers, Apple CEO Tim Cook comments, “While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide. Our active installed base of devices reached an all-time high of 1.4 billion in the first quarter, growing in each of our geographic segments.”
The positive outlook from Dow members come during what has been the busiest week of this earnings season. As a matter of fact, more than 20 percent of S&P 500 companies will have released their quarterly results within the next few days. And as of today, more than 70 percent have already comped up with earnings far better than what had been expected.
Looking more closely at a handful of stocks it is easy to see this to be true. For example, Advanced Micro Devices Inc (AMD) is up nearly 15 percent, with the chipmaker meeting Wall Street estimates for fourth-quarter earnings. Alibaba Group Holding Co also posted fiscal third-quarter results better than they had expected.
On the other hand, AT&T met analyst estimates, adjusting earnings by 86 cents a share in Q4 before posting revenue came in just shy of analyst estimates. McDonald’s is also down 0.4 percent and eBay shares have lost nearly 2 percent of their value.