US: Corporate earnings drive shares in opposite directions

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[NEW YORK] A bruising earnings report from industrial giant 3M dragged the Dow lower on Thursday but strong results from Microsoft and Facebook boosted the Nasdaq. Read more at The Business Times.

But Facebook surged 5.8 per cent following its report, while Microsoft jumped 3.3 per cent, lifting its market capitalization above US$1 trillion.

"It's 100 per cent about earnings," analyst Adam Sarhan of 50 Park Investment told AFP."Investors digest a lot of data and we are getting mixed signals with respect to earnings but mostly positive."Among others reporting results, Tesla Motors fell 4.3 per cent and UPS slumped 8.1 per cent. After markets closed, Amazon reported earnings had more than doubled in the first quarter to US$3.6 billion, and its share price rose in after-hours trading.

Analysts also were encouraged by US data showing an unexpected jump in durable goods in March, rising on strong demand for aircraft and communications equipment along with record auto sales.

 

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