US markets ended their three-day decline caused by Fed pessimism today, with a day of gains led by the technology sector. The NASDAQ composite (^IXIC) jumped by $15.12, or 0.47%, while the Dow Jones Industrial Average (^DJI) rose by a modest $27.03, or 14%. These gains were caused by impressive performances from large technology stocks, which were heavily traded and had stratospheric increases in price.
Deal-of-the-day website Groupon (NASDAQ: GRPN) surged by $1.89, or 21.67%. This was due to strong Q2 earnings, as well as a $300 million share buyback plan. However, the company's Q3 forecast isn't as optimistic - with a predicted EPS of negative one to one cent versus general consensus of five cents. For today, however, anticipation for GRPN's share buyback has caused the stock to be the fifth largest gainer on the NASDAQ market by percentage. In addition, it was also the most traded stock on US markets.
Venerable tech giant Microsoft (NASDAQ: MSFT) rose by $0.83, or 2.58%. Yesterday, the stock received an order for 30,000 Surface tablets from Meiji Yasuda Life Insurance. Today, firm Evercore upgraded MSFT's rating from "equal weight" to "overweight", which means that the firm believes the company is undervalued. Better yet, its price target was raised from $35 to $38. MSFT, which recently dropped from $35 due to a devastating $900 million (reduction of book value due to market sentiment that the asset in question is overvalued,) is starting to show signs of recovery. The Surface is one of Microsoft's more successful forays into the mobile market, and shows that Microsoft is far from dead in this sector; instead, it is a major contender in the battle to dominate this massive, multi-trillion dollar industry.
Electric-car manufacturer Tesla (NASDAQ: TSLA) jumped by $19.35 (14.34%). The company released Q2 earnings that showed a massive increase in revenue and a rapidly shrinking net loss. TSLA's adjusted net income was actually positive, with an EPS of $0.26 versus a consensus estimate of $0.17. The company reported net revenue of $405.14 million versus $26.65 - a massive increase. As the company begins to ship cars outside of North America, revenue (and stock price) for TSLA could explode over the upcoming quarters.
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