NEW YORK, September 21, 2018 /PRNewswire/ --
U.S. stocks continued to rise higher despite continued trade war tensions between the U.S. and China. The Dow Jones Industrial Average jumped 514.9 points, or 1.9%, hitting a new high this year of 26,642.57 from its previous high back in January of 26,616.71. Earlier in the week, the President announced his intent to implement USD 200 Billion of tariffs on China, to which China retaliated with tariffs on about USD 60 Billion of products as well. Tech stocks, especially FANG stocks, were notable losers early in the week. On Thursday, tensions eased after the Chinese commerce ministry said they hope to rectify the situation with the U.S. and take proper steps. Micron Technology, Inc. (NASDAQ: MU), Red Hat, Inc. (NYSE: RHT), General Mills, Inc. (NYSE: GIS), AutoZone, Inc. (NYSE: AZO), Oracle Corporation (NYSE: ORCL)
The positive news eased tech stocks such as Facebook Inc. (NASDAQ: FB), Amazon.com Inc. (NASDAQ: AMZN), Netflix Inc. (NASDAQ: NFLX) and Apple Inc. (NASDAQ: AAPL) began to rise on settling tensions. The S&P 500 hit an all-time high of 2,925.48, gaining 25.91 points. The Nasdaq Composite edged slightly higher as well, gaining 48.45 points. Paul Brigandi, Managing Director and Head of Trading for Direxion, in a MarketWatch report explained that, "Fundamentally and technically, the market is really strong right now. Corporate earnings have been good, and economic data has been really good. At the same time, there's a sense that China's most recent trade retaliation wasn't as severe as expected, which led to some optimism and relief that the situation may not turn into a full-blown trade war."
Micron Technology, Inc. (NASDAQ: MU) announced Thursday after markets closed results of operations for its fourth quarter and full year of fiscal 2018, which ended August 30th, 2018. Revenues for the quarter were USD 8.44 Billion, up 38% compared with the same period last year. For the year, revenues of USD 30.39 Billion, up 50% compared with the prior fiscal year. "Micron delivered an exceptional fourth quarter and capped record fiscal year results by becoming the second largest semiconductor company in the U.S.," said Sanjay Mehrotra, President and CEO of Micron Technology. "In the fourth quarter, we set revenue records across all our major markets, from automotive and industrial to mobile and cloud datacenters. The secular and diversified growth drivers in our industry combined with accelerating pace of transformation of the new Micron form a tremendous catalyst for us to create enduring value for our customers and investors in 2019 and the years ahead."
Red Hat, Inc. (NYSE: RHT) reported it second quarter financial results for fiscal year 2019. Red Hat reported total quarterly revenue of USD 823 Million, increasing 14% year over year. Quarterly revenue from its Application Development and technology subscription revenue was USD 196 Million, increasing 31% year over year. The Company reported earnings per share of USD 85 cents. Analysts projected revenue of USD 830 Million and earnings per share of USD 82 cents. Red Hat shares fell by 5%. "Customers continue to prioritize their digital transformation initiatives, and they are adopting Red Hat's hybrid cloud enabling technologies to modernize their applications and drive greater efficiency and effectiveness in their business," stated Jim Whitehurst, President and Chief Executive Officer of Red Hat. "The expansion of our technology portfolio has increased our strategic importance with customers, which is evidenced by the number of deals over five million dollars in the second quarter more than doubling year-over-year."
General Mills, Inc. (NYSE: GIS) reported its first quarter financial results for fiscal year 2019 on Monday during after-hours. General Mills reported revenue of USD 4.1 Billion, increasing 9% year over year and an earnings per share of USD 71 cents. Analysts forecasted revenue of USD 4.13 Billion and an earnings per share of USD 64 cents. General Mills shares fell by 8.62% on Tuesday at the opening bell. "Fiscal 2019 is off to a good start," said General Mills Chairman and Chief Executive Officer Jeff Harmening. "We drove organic net sales growth for the fourth consecutive quarter. The Blue Buffalo transition is progressing well, and we continue to expect double-digit top and bottom-line growth for that business this year, excluding acquisition-related charges. And we're on track to deliver our financial commitments, with first-quarter adjusted operating profit and adjusted diluted EPS results ahead of our expectations. Based on these results and our outlook for the year, we are reaffirming our full-year fiscal 2019 targets."
AutoZone, Inc. (NYSE: AZO) reported its fourth quarter financial results before the opening bell on Tuesday. For the quarter, AutoZone reported net sales of USD 3.6 Billion, increasing 1.3% year over year. Domestic same-store sales increased by 2.2%. Net income for the quarter decreased by 7.7% year over year to USD 400.3 Million, or a diluted earnings per share of USD 15.02. Shares fell by 2.96% on Tuesday. "I would like to thank our entire organization for their efforts that delivered solid financial results again in fiscal 2018. Our culture of exceptional customer service continues to guide us every day and is our driving force. We were pleased to deliver positive same-store sales for both our Retail and Commercial businesses. We expected our sales, particularly in the Rust Belt, to increase this summer and, for the most part, that materialized. Additionally, our Commercial sales performance accelerated nicely in the quarter growing 8.8%. While these were positive developments, we believe we have further opportunities to improve our operations and results. As we are investing to grow, we will remain committed to our disciplined approach to increasing operating earnings and utilizing our capital effectively," said Bill Rhodes, Chairman, President and Chief Executive Officer.
Oracle Corporation (NYSE: ORCL) announced fiscal 2019 Q1 results earlier this week. Total Revenues were USD 9.2 Billion, up 1% in U.S. dollars and up 2% in constant currency, compared to Q1 last year. Total Cloud Services and License Support plus Cloud License and On-Premise License revenues were up 2% to USD 7.5 Billion. Cloud Services and License Support revenues were USD 6.6 Billion, while Cloud License and On-Premise License revenues were USD 867 Million. "We are off to an excellent start with Q1 non-GAAP earnings per share growing 19% in constant currency," said Oracle CEO, Safra Catz. "That strong earnings per share growth rate increases my confidence that we will deliver on another fiscal year of double-digit non-GAAP earnings per share growth."
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