Stock Market Today: The Beginning of a Tech Rebound?

Investors can expect a higher start to the stock market today, as the Dow Jones Industrial Average (DJINDICES: ^DJI  ) has gained 42 points in pre-market trading. Meanwhile, the tech-heavy Nasdaq Composite  (NASDAQINDEX: ^IXIC  ) looks poised to recover some of the ground it has lost to the Dow and other indexes recently, and it can thank Apple (NASDAQ: AAPL  ) and Facebook (NASDAQ: FB  ) for that boost. Both companies easily beat earnings estimates last night. The stocks, which together account for over $600 billion in market capitalization, are each up by more than 5% as of 7:30 a.m EDT.

Meanwhile, dozens of companies reported quarterly earnings results this morning, including Verizon (NYSE: VZ  ) and Under Armour (NYSE: UA  ) , which are on the move in pre-market trading.

Verizon today booked a 23% rise in adjusted earnings. Profit came in at $0.84 a share, a nice rise from the $0.68 it logged a year ago. Sales improved by 5% to hit $30.8 billion, which was slightly above analysts' expectations. The big milestone for Verizon in the quarter was closing its $130 billion deal to gain full control over its wireless business. In an earnings press release, CEO Lowell McAdam said that, although the quarter only included five weeks of fully integrated Verizon Wireless results, management is already energized by the "full access we now have to the significant cash flows" of that business. Indeed, wireless revenue grew by 6.9% as average monthly revenue per customer hit $160. That figure still has room to grow as smartphone penetration continues: those devices accounted for just 72% of Verizon's phone base, up from 70% a year ago. The stock was up 0.4% in pre-market trading.

Under Armour cleared some lofty earnings expectations this morning. Wall Street had been looking for a massive 27% quarterly sales boost to just under $600 million. But the performance clothing maker instead booked a 36% jump to $642 million. Earnings improved by $0.02 a share to reach $0.06 on a split-adjusted basis, also ahead of expectations, as profitability expanded by a full percentage point to 46.9% of sales. Under Armour's huge beat was powered by its apparel, footwear, and international businesses, which respectively grew by 33%, 41%, and 79%. After posting numbers like that, it's no wonder management sounds so confident: CEO Kevin Plank said there is "unlimited potential" ahead for the brand. Under Armour's stock was up 2.8% in pre-market trading.

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Comments from our Foolish Readers

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  • Report this Comment On April 24, 2014, at 10:05 AM, cvitte71 wrote:

    awesome commentary - maybe your predictions could use some work - earnings are never an indicator of market performance - great earnings can bring a malstrom of sales, ie. it can't get any better than this, time to sell...

  • Report this Comment On April 24, 2014, at 10:23 AM, TMFSigma wrote:

    @cvitte, I'm not crazy enough to make stock market predictions...the direction that stocks wiggle over the short term is anybody's guess.

    I agree that earnings aren't a great predictor of short term market performance, but they are *the* critical factor over time. To paraphrase Ben Graham: the stock market is a voting machine over the short term and a weighing machine in the long run. UA sellers are voting one direction right now, and meanwhile the company is getting heavier.




  • Report this Comment On April 24, 2014, at 12:29 PM, cvitte71 wrote:

    @TMFSigma - sorry for soundling like a jerk - pre-market looked so good and then.. BOOM - March and April have been devastating to me.. I keep telling myself.. "it can't go any lower" and then it does.. again.. my apologies.. :)


    Last year was great - up until Feb 27. 2014 - then ... well.. you know.

  • Report this Comment On April 24, 2014, at 12:50 PM, TMFSigma wrote:

    No worries, cvitte, I'm right there with you: I've seen a bunch of my stocks take a big haircut lately. If it helps, try to think of the extreme short-term volatility as the price you pay for an overall bigger portfolio of returns a few years from now. That's a good way to get the focus off of these quick and seemingly random swings.



  • Report this Comment On April 24, 2014, at 7:05 PM, ChuckinSC wrote:

    I have found during the down periods not to look at my scorecard. But, when going up - I look every day or several times a day. :-)

  • Report this Comment On April 25, 2014, at 8:26 AM, TMFSigma wrote:

    That works too, Chuck!

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Demitrios Kalogeropoulos

Demitrios covers consumer goods and media companies for, as well as broader moves in the economy.

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9/1/2015 4:35 PM
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NASDAQ Composite… CAPS Rating: No stars
UA $93.16 Down -2.37 -2.48%
Under Armour CAPS Rating: ****
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Verizon Communicat… CAPS Rating: ****