Investors are trying to navigate their way through volatile market conditions, and they got one new data point on Tuesday morning to consider. Stock market futures were higher just before the release of November data on the Consumer Price Index (CPI), and market participants were watching closely to see whether the latest numbers would signal slowing inflation or persistent price pressures. In the end, the CPI came in lower than expected, helping to support a broader early rally.
Some stocks, however, looked to build momentum regardless of what the inflation report said. Oracle (ORCL 1.05%) released its latest financial results late Monday to give shareholders a sense of where things stand with the software giant, while Boeing (BA 1.36%) enjoyed a big new order from a major customer that could help point the way toward a further recovery in the hard-hit aerospace leader's stock over the past few years.
Oracle has the answers
Shares of Oracle were higher by 3% in premarket trading Tuesday morning. The software company reported fiscal second-quarter financial results for the period ending Nov. 30, and most of those following the stock were pleasantly surprised with how the business performed.
Oracle's report was encouraging for those who had been concerned about the state of the tech industry. Revenue climbed 18% year over year to $12.28 billion, driven largely by a massive 43% rise in cloud-based revenue compared to year-ago results. Impressively, Oracle reined in operating expenses considerably, and that helped it reverse a loss in the year-earlier period and post net income of $1.74 billion. Adjusted earnings came in at $1.21 per share, which surpassed the expectations of most shareholders.
To be clear, a considerable portion of Oracle's growth came from its June 2022 acquisition of healthcare technology specialist Cerner. Yet Oracle sees plenty of additional opportunities to take advantage of needs to modernize healthcare information systems, and that could generate further business.
More broadly, Oracle CEO Safra Catz sees the company's infrastructure cloud having superior characteristics to similar products from competitors, and she sees opportunity in letting Oracle's clients direct their IT spending budgets to make investments in the specific niches that will generate the highest returns. That's something smaller software providers can't match, and it could be a key advantage for Oracle.
Boeing flies higher
Elsewhere, shares of Boeing were up about 2% before the market's regular trading session began on Tuesday morning. The aerospace and defense giant got a big aircraft order that should help to build confidence in Boeing products after a long period of doubt.
United Airlines (UAL 1.43%) placed an order for 100 new Boeing 787 Dreamliners. The move is intended to help United replace aging planes that are approaching the end of their normal operating lifespans, but the use of larger jets will also potentially give the airline more flexibility to rebuild and expand its international route map.
The news is especially good because of some of the challenges that the Dreamliner has had in its history. Manufacturing challenges threatened the 787 program in 2020, at a time when Boeing's reputation was already suffering from two crashes involving its 737 MAX line of aircraft. United's order isn't the first from an airline since then, with some major commitments coming earlier this year, but it does help build more positive momentum for Boeing's business.
Even with recent gains, Boeing stock trades for less than half what it fetched before the pandemic in 2019. That could give the aerospace giant more room to run if it can keep making progress toward a full recovery.
