Geopolitics has been side-lined for now and the focus has switched to earnings results from, in the words of Janet Yellen some of the more “stretched” sectors of the stock market. As it turns out, the earnings performance has been impressive with Biogen, Gilead Sciences and especially Facebook all knocking the ball out of the park helping US markets look towards a higher open. Futures suggest the Dow Jones will open 31 points higher at 17,117 with the S&P500 expected to open 2 points higher at 1,989 and the Nasdaq 7 points higher at 3,993. Shares in Biogen flew higher by 11% after reporting 23% earnings growth and a big jump in sales boosted by its successful multiple-sclerosis drugs. Gilead Sciences have put aside political debate over the pricing of its Hepatitis C drug Sovaldi as sales, profits and its stock price soared. Facebook continue to impress in the areas that have held back other social media companies, with mobile ad revenue and user growth both seeing big gains and pushing the stock to all-time highs. Up today are earnings from Ford, Caterpillar, Visa, Amazon, American Airlines and Starbucks. CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
Facebook and biotech valuations not looking as “stretched”
19:00, 23 July 2014