Amazon Amazes as Stocks Soar
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Amazon.com (NASDAQ: AMZN) capped a stellar day for stocks with a blow-out earnings report.
Amazon soared past $100 a share for the first time in two years after the company reported earnings of 45 cents a share, 12 cents better than the Thomson Reuters forecast, on a 28 percent increase in sales to $5.45 billion, about $400 million more than expected.
Amazon said it could take in between $8.13 billion and $9.13 billion in revenues for the fourth quarter, with the latter figure $1 billion more than analysts were anticipating. The Kindle electronic reader has now become the company's biggest seller.
Amazon's all-time high of $113 was set in December 1999.
Stocks surged during the day on strong reports from blue chip stocks, and even the Nasdaq joined in the rally despite eBay's (NASDAQ: EBAY) uninspiring earnings report.
VMware (NYSE: VMW) and EMC (NYSE: EMC) were mixed despite better than expected results.
Microsoft (NASDAQ: MSFT) was little changed on the launch of Windows 7. The software giant will report earnings tomorrow morning.
F5 (NASDAQ: FFIV) surged on its results, while Switch and Data (NASDAQ: SDXC) soared on news that it will be acquired by Equinix (NASDAQ: EQIX).
Ericsson (NASDAQ: ERIC), Network Equipment (NASDAQ: NWK) and TriQuint (NASDAQ: TQNT) fell on their earnings reports.
The Nasdaq gained 14 to 2165, the S&P 500 rose 11 to 1092, and the Dow surged 131 to 10,081. Volume declined to 5.19 billion shares on the NYSE, and 2.28 billion on the Nasdaq. Advancers led by a 24-13 margin on the NYSE, and 16-10 on the Nasdaq. Upside volume was 74 percent on the NYSE, and 66 percent on the Nasdaq. New highs-new lows were 201-29 on the NYSE, and 61-20 on the Nasdaq.