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Amazon, Alphabet deliver on earnings; Wall St mixed

Thursday, July 28, 2016 - 01:24

Tech titans Amazon and Alphabet reported strong earnings results after the close on Thursday. Stocks were mostly higher in the regular trading session. Bobbi Rebell reports.

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Tech titans reporting after the close included Google parent Alphabet. Revenue was up a better-than-expected 21 percent in the second quarter, driven by strong advertising sales on mobile devices, and for video content. Amazon also with impressive revenue numbers. They too were higher than forecasts, thanks to blockbuster growth in its cloud services unit, and an increase in subscriptions for its Prime loyalty program. During the regular session, stocks traded in a narrow range, and closed out the session mixed. Kevin Mahn of Hennion and Walsh believes an upward earnings trend will boost stocks. (SOUNDBITE) KEVIN MAHN, CHIEF INVESTMENT OFFICER, HENNION AND WALSH, (ENGLISH) SAYING: "If you look at traditional valuation standards, p/e ratios, the S&P is trading richer than historical averages. But, if you look to the end of the year or to 2017, those come back in below historical averages from a historical perspective." Ford's shares dropped after the carmaker posted weak quarterly profit and declared that the U.S. auto industry's long recovery was at an end. The stock was the biggest drag on the S&P 500 index. Shares of GM were lower as well. Oracle working to boost its cloud business. The business software maker buying NetSuite for about 9.3 billion in cash - about a 19 percent premium. European stocks took a step backwards on weakness in financials and disappointing corporate earnings.

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Amazon, Alphabet deliver on earnings; Wall St mixed

Thursday, July 28, 2016 - 01:24