Dow Jones May Take a Hit Today
The Dow Jones Industrial Average (DJIA) may come under some selling pressure in the stock market today as the markets around the world reel under the executive order of President Donald Trump banning refugees and citizens from seven Muslim-majority countries.
The DJIA index closed down about seven points at 20,093.78 on Friday, with Chevron Corporation (NYSE:CVX) losing more than two percent.
The S&P 500 lost about two points to close at 2,294.69, whereas the NASDAQ composite ended in the green, gaining 5.61 points and closing at 5,660.78.
The NASDAQ gained on the back of good earnings reports last week, but in today’s session, with uncertainties surrounding the U.S. technology sector on account of the Trump Immigration order, the technology stocks are likely to trade lower.
Stocks to Watch Today
Microsoft Corporation (NASDAQ:MSFT)
Microsoft announced its FY17 Q2 earnings Thursday and posted better-than-expected results. MSFT stock gained 2.35% on Friday and closed at $65.78.
The company posted adjusted earnings of $0.83 and revenue of $26.1 billion. Microsoft also completed its acquisition of LinkedIn Corp (NYSE:LNKD) on December 8, 2016. Microsoft Chief Executive Officer Satya Nadella said, “Our customers are seeing greater value and opportunity as we partner with them through their digital transformation.” He further added that accelerating advancements in AI across our platforms and services will provide further opportunity to drive growth in “Microsoft Cloud.” (Source: “Microsoft Posts Strong Fiscal Q2 Earnings, Beating Consensus On Cloud Growth,” Forbes, January 26, 2017.)
Microsoft’s focus on “Azure” has started to pay off as it competes with Amazon.com, Inc.’s (NASDAQ:AMZN) “Amazon Web Services.” Azure revenue increased 93% year-over-year and is expected to be a critical factor in the growth of MSFT stock in future.
Apple Inc. (NASDAQ:AAPL)
Apple Inc. has been in the news recently over the likely agreement with Indian officials to build an “iPhone” plant in India, as the company considers the Indian market to be an important growth driver for its smartphones. Investors would be expecting some formal announcement on this development as they wait for the quarterly earnings report to be released Tuesday.
The company has got into another sort of trouble, as President Trump has passed an immigration order banning citizens from countries like Syria, Iran, and Iraq from entering the United States. Apple CEO Tim Cook wrote an email to his employees on Saturday, clarifying that the company does not support this policy. As the Trump administration considers changes in the H1-B program as well, the company, as well as AAPL stock, is expected to be in the news as Apple hires talent from all around the world. (Source: “Apple CEO Tim Cook on Trump’s immigration order: ‘It is not a policy we support’,” Business Insider, January 28, 2017.)
Tesla Motors Inc (NASDAQ:TSLA)
Tesla stock gained slightly in the last trading session and closed at $252.95. As the date for Tesla’s quarterly earnings announcement comes closer, investors are focusing on the new equation that is building between Elon Musk and Donald Trump. Tesla Motors is one of the few U.S. companies that has its manufacturing plants in the country and plans to hire more American workers in the future.
However, given the recent Trump Immigration order, Tesla CEO Elon Musk is in the news following his tweet post that said, “The blanket entry ban on citizens from certain primarily Muslim countries is not the best way to address the country’s challenges.” (Source: “Twitter post,” Elon Musk Twitter account, January 28, 2017, 8:34 p.m.)
As Musk meets Trump on Friday, along with other members of the business advisory panel, all eyes will be on what step would Trump take to ease the pressure on technology companies.