Facebook and Tesla report quarterly earnings
Microsoft's (MSFT) bet on the cloud continues to pay off.
On Wednesday, the company said sales for its most recent quarter rose 14% to $30.6 billion, which was above Wall Street's estimates. The increase in revenue was helped by the company's commercial cloud business, which jumped 41% to $9.6 billion from last year.
Earnings-per-share also beat analysts' expectations. The stock rose more than 2% in after-hours trading.
The company has heavily invested in cloud services in the last several years, shifting focus away from its legacy business, Windows.
Microsoft's efforts have placed the company near the top of the fast-growing cloud technology sector. Its key cloud-computing platform is Azure, which competes with Amazon Web Services (AWS).
Stocks ended Wednesday’s trading day lower, just one day after the S&P 500 and Nasdaq finished at a record high.
So much for more record breaking…Losses were led by companies in energy, as well as telecommunications services and basic materials.
Investors took a ton of money out of funds in the first quarter, suggesting that a lot of people haven't taken part in the stock market rally this year.
But when these players come back to the market, stocks will get another boost, said Kristen Bitterly, head of capital markets Americas at Citi Private Bank.
She predicts a 5% to 7% upside in stocks.
On top of that, volatility was low, Bitterly said. So maybe it's a good time to buy some protection for whatever there is to come next.
A recession, however, will likely not be it. At least not any time soon, said Bitterly.
Don't read too much into the flat stock market today, cautioned Jonathan Corpina, senior managing partner at Meridian Equity Partners, on CNN Business' Markets Now live show.
"We don't want one-way markets, going straight up or straight down," he said.
So don't worry too much about any one day in markets. Stay calm out there.
The US dollar reached its best level of the year today, which is great for the buck but perhaps less great for stocks.
A strong currency usually weighs on the stock market. That notwithstanding, the greenback has been trending higher for much of the year, and stocks didn't seem to mind too much. Yesterday, the S&P 500 and Nasdaq Composite hit new all-time closing highs.
In Wednesday trading, the ICE US Dollar Index, which measures the US currency against six major rivals, climbed to a high of 97.991, a level last reached in June 2017, according to Refinitiv.
About half-way through the trading day, stocks are little changed.
In the Dow, consumer companies are stronger, holding the balance against a drop in energy and basic materials shares.
More tech earnings are coming up. Wedbush Securities analyst Daniel Ives wrote in a note that he expects earnings to be "rock solid," adding:
While tech stocks continue to make new highs we believe this rally still has legs as the underlying growth drivers across consumer and enterprise tech names remain healthy."
Ives added that cloud computing and cyber security "remain the sectors to own for tech investors." He pointed to Microsoft as a strong name on that front.
Here's when some big tech companies report: