Dow Jones is over 30,000.Microsoft and Boeing stock surge

TheĀ· Dow Jones Industrial Average (DJINDICES: ^ DJI) It surpassed 30,000 for the first time on Tuesday as investors piled up shares. The Dow rose about 1.5% at 1:55 EST. A combination of optimism about the COVID-19 vaccine, expectations for new stimulus spending, and several moves by the General Procurement Bureau to summon the apparent winner of the US presidential election, Joe Biden, contributed to Tuesday’s profits. There may be.

Share Microsoft (NASDAQ: MSFT) It rose on Tuesday after analysts predicted further profits for tech stocks thanks to the growth of the cloud and subscription software business. Boeing (NYSE: BA) It also posted profits after European aviation regulators began the process of ungrounding the 737 MAX.

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Microsoft gets a purchase rating

Software and cloud computing giant Microsoft’s stock rose on Tuesday after KeyBanc analysts began to overvalue and cover stocks. Key Banc analyst Michael Turits has also set a price target of $ 250. Microsoft’s share price rose 1.6% early Tuesday afternoon, trading at around $ 213.

Turits is optimistic about the strengths of Microsoft’s cloud and subscription software business. Turits believes that tech giants will be able to achieve annual revenue growth of 11% over the next few years, primarily driven by these two businesses.

So far, Microsoft hasn’t felt much of a pandemic inspiration. The company reported a 12% increase in first-quarter earnings and a 32% increase in earnings per share, one mile above analysts’ estimates. The company has benefited from strong demand for PCs, and demand for cloud computing services and gaming products continues to rise throughout the pandemic.

One of the areas where Microsoft is suffering is the commercial PC business. The company expects second-quarter Windows Pro OEM revenue to decline significantly by a single digit due to sluggish commercial demand. For non-Pro versions of Windows OEMs, the company expects strong growth to continue.

Microsoft isn’t a cheap stock after a fierce backlash this year. Tech giant stocks are currently trading at about 35 times the historically high level of earnings. Investors may not be very optimistic about equities if Microsoft begins to feel a pinch as corporate clients pull back spending during the current wave of pandemics.

Including Tuesday’s profits, Microsoft’s share has risen about 35% since the beginning of the year.

Boeing 737 MAX to return to Europe

The news is finally starting to be positive for Boeing and its plagued 737 MAX. The Federal Aviation Administration recertified the commercial service of airplanes last week. This means that the airline can resume using the plane once the required maintenance and pilot training have been completed.

On Tuesday, European regulators began the process of allowing the 737 MAX to fly the continent again. The European Union Aviation Safety Agency (EASA) requires new pilot training and updated software for its flight control system, which was identified as the cause of the two fatal crashes that led to the aircraft touchdown in 2019. .. The 28-day comment period has begun. EASA expects the plane to not officially touch down in mid-January.

The 737 MAX should carry passengers again in the coming months, but it’s not easy to sell planes to airlines suffering from a pandemic declining demand for air travel. It can take years for passenger numbers to fully recover, especially if the economic impact of the pandemic continues long after the widespread availability of the vaccine.

Boeing’s share price rose 3.3% on Tuesday afternoon. This year’s inventory is still down about 33% so far.

Dow Jones is over 30,000.Microsoft and Boeing stock surge

Source link Dow Jones is over 30,000.Microsoft and Boeing stock surge

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