After earnings from Meta and Microsoft sent markets deep into the red, markets are just now starting to pivot higher. The Dow is now up another 205 points, as the S&P 500 and NASDAQ regain momentum, as well.
All as the markets digest the latest round of earnings, positive trade war news, and the Federal Reserve’s decision to again cut interest rates.
Helping, Bank of America just reiterated its buy rating on GOOG, with a price target of $335 from $280 after earnings. Bank of America also reiterated its buy rating on META, lowering its price target to $810 from $900 after earnings.
In addition, Morgan Stanley reiterated its overweight rating on Microsoft, raising its price target to $650 following earnings.
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After several record-setting days, markets are flat to down at the moment.
Dow futures are down 139, as the S&P 500 fights to hold on to a single point. The NASDAQ is up about three points. All as investors digest the latest round of earnings. Plus, President Trump’s meeting with Chinese President Xi Jinping seems to have gone well, with rare earth restrictions lifted.
With earnings, Alphabet (NASDAQ: GOOG | GOOG Price Prediction) popped after posting strong results. EPS of $3.10 was better than expectations of $2.33. Revenue of $102.35 billion was also better than the estimates of $99.89 billion. The company also posted solid numbers in its cloud business thanks to growing demand for artificial intelligence. And it increased capex for 2025.
“With the growth across our business and demand from Cloud customers, we now expect 2025 capital expenditures to be in a range of $91 billion to $93 billion,” the company said in its earnings report, as quoted by CNBC.
Meanwhile, Meta (NASDAQ: META) is down about 9% in premarket on its earnings. While META posted its highest revenue growth since 2024, it did get hit with a one-time charge of $15.93 billion. EPS of $7.25 was better than the estimates of $6.69. Revenue of $51.24 billion was better than the estimates of $49.41 billion.
Microsoft (NASDAQ: MSFT) is down about 2% in premarket on earnings. The company took a one-time hit of $3.1 billion in net income because of its investment in OpenAI. Net income still rose to $27.7 billion, or $3.72 a share, from $24.67 billion, or $3.30 a share, year over year.
Beijing paused export controls on rare earths for a year, while Trump cut fentanyl-linked tariffs, following a meeting between U.S. President Donald Trump and Chinese counterpart Xi Jinping.
China will continue to dominate rare earths for the foreseeable future.
After all, as noted by CNBC, “China is the undisputed leader of the critical minerals supply chain, producing roughly 70% of the world’s supply of rare earths and processing almost 90%, which means it is importing these materials from other countries and processing them.”
Slightly helping, Trump did sign an agreement with Japan to help secure minerals. minerals. That’s in addition to deals with Australia, Malaysia, and Thailand.
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Ian Cooper is a veteran market analyst and investment strategist with more than 20 years of experience covering stocks, commodities, and macro trends. Since 1999, he has helped investors identify market opportunities using a blend of technical analysis, fundamental research, and market sentiment.
He is the creator of the ADD News Flow Strategy, which focuses on trading market reactions to major news events and investor psychology. Cooper was also among the analysts who warned about the 2008 financial crisis and major financial institution collapses ahead of the broader market.
Before joining 247 Wall St., Cooper wrote extensively for InvestorPlace and other financial publications, covering market trends, trading strategies, and investment opportunities.
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