Nasdaq Claws Back Almost 2% as Trump-Amazon Spat Gives Way to Google
(Bloomberg) -- What started out as a potentially ugly day for technology stocks turned into a reprieve as Google’s earnings overshadowed President Donald Trump’s tweets.
Google parent Alphabet Inc. gained 5.4 percent in post-market trading as of 4:47 p.m. in New York after reporting higher-than-expected revenue and a jump in the tech giant’s advertising business. That helped pull an exchange-traded fund tracking the Nasdaq 100, the Invesco QQQ Trust Series 1, up 0.8 percent in aftermarket hours. From the morning lows, the reversal was nearly 2 percent.
“No question” that earnings outweigh any news headlines or tweets, said Gary Bradshaw, a portfolio manager at Hodges Capital Management in Dallas. Google currently makes up a 3 percent position in the firm’s Hodges Blue Chip Equity Income Fund.
“It’s all about earnings and if earnings continue to deliver, the stock market is going to go higher,” Bradshaw said by phone. “Tonight Google blew away the numbers. Tech continues to outperform the rest of the market.”
It was an about-face for the Faang cohort, another display of resilience as earnings season enters its busiest week of the quarter. Amazon fell Monday morning after President Trump took to Twitter to slam the company on anti-trust grounds, falling as much as 2.4 percent in trading hours. After Google’s earnings report, Amazon pared nearly all its losses to trade nearly unchanged.
Facebook Inc will report Wednesday and Amazon is scheduled for Thursday. Apple Inc reports next week.
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