Majors markets all moved into the positive on the heels of a positive austerity vote in Greece. While markets were up for the day, they basically regained losses taken Friday when the austerity measures were not certain. Markets were trading around the level seen early last week as investors were patiently awaiting a resolution in Europe.
Stock Market Summary
- Closing numbers: DJIA +72.81 (0.57%), NASDAQ +27.51 (0.95%), S&P 500 +9.13 (0.68%)
- Volume was noticeably lower
- 25 of the 30 Dow Components Closed Higher
- Gold retreated $6 -0.32%, to close at $1,719 an ounce. Note: Warren Buffett criticized gold as an investment.
Stocks Making News Today
APPLE Inc. (AAPL) closed above 500 for the fist time in the stock’s history at $502.60 per share up 1/9%. Read more on Apple Stock.
Rackspace Hosting Inc. (RAX) – The operators of servers and cloud service for client website and applications announced profits that surpassed estimates. Growth in cloud computing services, web-based computing services metered over the internet, were very strong. Earnings reported were 18 cents of 283.3 million vs the analysts’ expected 15 cents on 281 million.
RAX traded up +0.72 (1.49%) during intraday trading and +3.37 (6.85%) in after hour trading. Note that todays close is over 10 times the stocks all time low. What is most intriguing is the fact that the longer that clients are with company the higher the company’s profit margin.
Stock to Watch Tomorrow
ZYNGA Inc. (ZNGA) The social media gaming provider is expected to announce its first earning report as a public company. Investors are watching closely to determine if the stock is going to go down the path of the recently released earning of Linkedin or Groupon. While Linkedin impressed shareholders with better than expected earnings, Groupon surprised them a unexpected loss. The company collects revenue through sales of online ‘virtual goods’. Zynga expects higher revenues but will it turn a profit? Shares of Zynga are up about 28% this month.
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