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Market Update

Surge in Alphabet, Amazon, Intel and Microsoft Lift Indexes


Author: Mukesh Buch
ticker.com
Last Update: 1:57 PM EDT October 27 2017

1:45 PM New York – Alphabet beats earnings estimates on rising aggregate advertising revenues. Amazon Roars ahead with broader revenues rise. CVS is in talks to acquire Aetna for $66 billion. Exxon profit surges. Intel PC revenues drop but report strong quarterly revenues. Microsoft rides cloud boom.

Tollbooth Index jumped 173.11 or 1.3% to 13,079.46.

Earnings Review

Alphabet Inc (GOOG) soared 6.4% or $62.44 to $1,035.13 after the search engine services provider reported revenues in the third-quarter ending in September soared 23.7% from a year ago to $27.8 billion.

Net income in the quarter surged 31.4% to $6.7 billion or $9.57 per diluted share from $5.1 billion or $7.25 in the same quarter last year.

Alphabet reported cost per click declined 21% but aggregate paid clicks jumped 47% and operating margin advanced 28% from 26% in a year ago period.

Amazon.com, Inc (AMZN) surged 11.4% or $111.26 to $1,083.71 after the online market place said net sales in the third-quarter ending in September jumped 34% from a year ago to $43.7 billion.

Net income in the quarter increased 1.6% to $256 million from $252 million or diluted earnings per share were flat at 52 cents from in the same quarter last year.

Amazon forecasted fiscal 2017 net sales between $56 billion and $60.5 billion or may grow between 28% and 38% from fourth-quarter of fiscal 2016 and operating income between $300 million and $1.65 billion, compared to $1.3 billion compared to fourth-quarter 2016

CVS Health Corp (CVS) declined 4.6% or $3.32 to $69.93 after the drug retailer said is in talks to acquire diversified healthcare benefits provider Aetna Inc for more than $200 per share or more than $66 billion.

Aetna Inc stock slumped 2.5% to $175.59.

Colgate-Palmolive Company (CL) slipped 1.7% or $1.18 to $70.04 after the consumer products maker said revenues in the third-quarter ending in September advanced 3% from a year ago to $3.97 billion.

Net income in the quarter declined 13.5% to $607 million or 68 cents per diluted share from $702 million or 78 cents in the same quarter last year.

Colgate lifted global growth and efficiency restructuring program to generate charges of $1.28 billion to $1.38 billion from earlier estimate of $1.12 billion to $1.17 billion.

Exxon Mobil Corporation (XOM) increased 51 cents to $83.95 after the oil and gas explorer reported revenues in the third-quarter ending in September jumped 12.8% from a year ago to $66.2 billion.

Net income in the quarter surged 49.8% to $3.97 billion or 93 cents per diluted share from $2.65 billion or 63 cents in the same quarter last year.

Intel Corporation (INTL) jumped 7.1% or $2.94 to $44.30 after the computer processor maker said revenues in the third-quarter ending in September rose 2% from a year ago to $16.1 billion.

Net income in the quarter soared 34% to $4.5 billion or 94 cents per diluted share from $3.4 billion or 69 cents in the same quarter last year.

Intel said its PC business related revenues in the quarter were flat at $8.9 billion from a year ago period.

Intel lifted fiscal 2017 revenues forecast by $700 million to $62 billion and diluted earnings per share to increase by 27 cents to $2.93.

Microsoft Corporation (MSFT) soared 7.3% or $5.74 to $84.50 after the information technology provider reported revenues in the first-quarter ending in September advanced 12% from a year ago to $24.5 billion.

Net income in the quarter jumped 16% to $6.6 billion or 84 cents per diluted share from $5.7 billion or 72 cents in the same quarter last year.

Revenue in productivity and business processes segment jumped 28% to $8.2 billion, cloud business soared 14% to $6.9 billion while revenues in personal computing segment were flat at $9.4 billion.

“This quarter we exceeded $20 billion in commercial cloud ARR, outpacing the goal we set just over two years ago,” said chief executive officer Satya Nadella.

Merck & Co., Inc (MRK) slumped 4.9% or $3.03 to $58.97 after the healthcare products maker said revenues in the third-quarter ending in September decreased 2% from a year ago to $10.3 billion.

Net in the quarter swung to a loss of $56 million or 2 cents per diluted share from profit of $2.2 billion or 78 cents in the same quarter last year.

Merck forecasted fiscal 2017 revenues in the range of $40 billion and $40.5 billion and diluted earnings per share between $1.78 and $1.84.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc