The Nasdaq jumped by 60 points to 4,528, the S&P 500 rose by 14 points to 1,897 and the Dow Jones Industrial Average added 130 points to trade at 16,077.
Facebook stock shot up this morning by over 13 percent to $107 after the company on Wednesday reported revenue swelled by 52 percent to $5.84 billion for the quarter. Mobile advertising revenue now accounts to 80 percent of Facebook’s revenue.
Under Armour stock was popping over 14 percent to $78.03 in pre-market trading after the athletic apparel brand reported that net revenues increased 31 percent for the third quarter to $895 million. Some analysts had expected Under Armour to be hurt by the warm winter and that wasn’t the case at all. Apparel net revenues rose 22 percent to $865 million, while footwear net revenues increased 95 percent to $167 million mostly due to the Stephen Curry signature basketball line. The earnings a share of 48 cents beat the FactSet consensus of 46 cents and sales of $1.17 billion topped the expectations of $1.11 billion. Net income increased 21 percent to $106 million for the third quarter as compared to $88 million last year.
H&M Hennes & Mauritz reported revenue for the fourth quarter excluding sales tax was 48.7 billion Swedish krona, or $5.7 billion, at today’s currency exchange rates, which was lower than the expected 49.5 billion SEK, or $5.8 billion. The stock is falling by over 4 percent to 283.60 SEK, to $33.20. The company blamed unpredictable weather in Germany and North America for the miss. Quarterly net profit dropped to 5.5 billion SEK or $645 million, down from last year’s 6.22 billion SEK. H&M added 413 new stores and 10 new online markets. Sales in December 2015 increased by 10 percent in local currencies compared to November. H&M plans to 425 new stores for the 2015/2016 financial year.
Alibaba stock rose over 4 percent to $72.54 after the Chinese e-commerce giant beat earnings expectations. Alibaba reported earnings per share of 99 cents, which was better than the FactSet expectations of 89 cents, and sales of $5.3 billion topped the consensus of $5.1 billion. Alibaba reached a milestone of over 400 million annual active buyers. Investors have been very worried about Alibaba with regards to the weakening Chinese economy. Gross merchandise volume growth increased, but the increased has slowed. Still, the revenue per active user is rising.
Ebay wasn’t able to report as rosy of an outlook as Alibaba. The stock is plunging over 11 percent to $23.33 after giving a lower guidance for the first quarter and full year. Spinning off payments company PayPal is hurting eBay’s operating costs as the company rebuilds its payment infrastructure. EBay reported fourth-quarter revenue of $2.32 billion, which was a bit higher than the FactSet estimate of $2.31 billion.
Amazon.com stock increased over 4 percent to $609 after the domestic e-commerce site said sales on its Exclusives platform topped $50 million in less than a year since its launch. Amazon reports fourth-quarter earnings after the close today and analysts expect the company to quadruple its profits year over year.
Elsewhere, China’s Shanghai Composite dropped 2.9 percent, Japan’s Nikkei fell 0.7 percent and the Hong Kong Hang Seng rose 0.8 percent. In Europe, indices were trading lower as the Eurozone January business and consumer survey fell to 105 from 106.7. Germany’s DAX is dropping1.6 percent, France’s CAC is losing 1.2 percent and Italy’s MIB is down 2.9 percent.