April 25, 2015
Stocks handily recouped the previous week’s losses and moved into record territory. The Standard & Poor’s 500 Index and the smaller-cap benchmarks established all-time highs at the end of the week, helped by some better-than-expected earnings reports. More notable was the performance of the technology-heavy Nasdaq Composite, which finally managed to surmount the record closing high it established over 15 years ago. The gain is attributed to large-cap stocks such as Microsoft and Amazon. Microsoft reported revenue of $21.73 billion for the quarter, up 6.5% year-over-year and $670 million above what analysts were expecting, and its EPS of $0.61 was 10 cents higher than the forecast. After the earning release on Friday, the share price of Microsoft rose by 10.5% to $47.87, the highest level since December 2014. Amazon has also seen a favorable Q1. Though still incurring an operating loss of $234 million, Amazon’s AWS sales had jumped 49% to $1.57 billion with an operating income of $265 million. Meanwhile, Amazon’s core North American market boosted sales 24% to $13.4 billion in the quarter. As Amazon’s stock priced went up by 14% on Friday, its CEO Jeff Benzo saw a $5 billion increase in his net worth.