Stocks Lower Ahead Of Tech Earnings

Plus 5 New Strong Buys for Today

Profit from the Pros By Kevin Matras Executive Vice President

Stocks Lower Ahead Of Tech Earnings Image: Bigstock Stocks closed lower yesterday ahead of some big name tech earnings this week. Google announced earnings after the close yesterday and beat on revenue (+3.40% positive sales surprise), but missed on earnings (-4.73% negative EPS surprise). Even though their report could have been better, it also could have been a lot worse. And GOOG was up nearly 9% in after-hours trade. Google's services along with their cloud-based offerings and YouTube were bright spots. But advertising revenue, while strong in Jan. and Feb., were a drag in March. Nonetheless, all things considered, it was a fine enough report. And if Google is any indicator of what's in store for other big-tech names, it may not be as scary as people fear. We'll get Microsoft and Facebook this afternoon (after the close), and Amazon and Apple tomorrow (after the close). Earnings will continue to drive the market this week, and for the next few weeks. But March was a completely different environment compared to now. Everybody was bracing for the worst back then. But gladly, the reality of what's happened is nowhere near what was predicted. As a result, stocks rebounded sharply and the focus has shifted to reopening our economy. So the current environment couldn't be more different than what it was like during the worst of the outbreak. And that's why the upcoming earnings reports, as ugly as some may be, may not be reacted to that poorly. Remember, the market is forward looking. And since the outlook is way, way, way better than what things looked like back then, the bad numbers may just be discounted as old news, given how different things are now. Of course, there's bound to be some reports of hot spots or flare ups of new cases in some reopened areas. That's to be expected. But if the reopen goes smoothly and safely (defying the worst expectations just like we did with the outbreak), then the economy and the market will continue on the road to recovery. See you tomorrow, Kevin Matras Executive Vice President, Zacks Investment Research Sponsor The Top Tech Stocks to Buy Now Louis Navellier predicted the rise of Cisco, Amazon, Oracle, and Google. Now he's targeting 6 new tech stocks poised for similar explosive growth. You can see how to get his recommendations FREE by going here. Most Popular Articles from Zacks.com Image: Bigstock 5 Top-Ranked Nasdaq Stocks to Buy Ahead of Earnings Results Despite the coronavirus-induced economic disaster and stock market turmoil, a handful of Nasdaq stocks are set to beat earnings estimates. Read More » Image: Bigstock The Best Earnings Charts of the 5 Big Tech Titans The FAANG stocks and Microsoft are reporting earnings this week. Investors think they're sure things, but are they? Read More » Image: Bigstock 3 Stocks in Focus as Coronavirus Boosts Medical Oxygen Demand The delayed response to the pandemic has pushed medical device manufacturers to ramp up their production of critical items, most of which are oxygen products. Read More » Image: Bigstock 3 Stocks to Benefit From Race to Develop Coronavirus Vaccines Investors have been closely observing the progress of top pharmaceutical and biotechnology companies as they participate in the development and production of potential COVID-19 remedies. Read More » Image: Bigstock Video Streaming Gains Traction With HBO Max On Track With television productions shut down globally due to the pandemic, streaming services have become a preferred mode of entertainment. Read More » Sponsor Notification of Release: 5 Stocks Set to Double Five Zacks' experts each revealed their single favorite stock with the best chance to gain +100% and more in the months ahead. For example, one is an Internet service with surging earnings, double-digit 2019 sales increase and rampantly growing user base. Today, you are invited to download the just-released Special Report that names these stocks and spotlights why their gain potential is so exceptional. See Stocks Now >> Image: Bigstock Bull of the Day: Eli Lilly (LLY) Double digit earnings growth expected in 2020 and it pays a dividend too. Read More » New Zacks Strong Buys for April 29th Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. Read More »   Download our app for convenient on-the-go access to even more—daily and weekly newsletters published by Zacks experts, proprietary research and tools, and Portfolio Tracker on Zacks.com. Visit Success Stories to hear how Zacks research, tools and portfolios help our members outperform the market. Get all of our market insights and much more when you connect with us. This free resource is being sent by Zacks.com. We look for investment resources and inform you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The Zacks #1 Rank Performance covers the period beginning on January 1, 1988 through March 2, 2020. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank #1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed above. Zacks Emails If you would prefer to not receive future profit-producing emails from Zacks.com the primary purpose of which is the commercial advertisement or promotion of a commercial product or service, then please click here and confirm your request. If you have trouble with the unsubscribe link, please email support@zacks.com. Zacks Investment Research 10 S. Riverside Plaza, Suite 1600 Chicago, IL 60606