AI optimism after Amazon earnings is boosting the tech sector
The Dow Jones Industrial Average (DJI), tech-heavy Nasdaq Composite Index (IXIC), and S&P 500 Index (SPX) are all enjoying gains after a strong batch of earnings and AI progress. Specifically, "Magnigicent 7" names Apple (AAPL) and Amazon.com (AMZN) are boosting market sentiment after impressive quarterly reports and upbeat guidance, with the latter also enjoying strong cloud and AI demand. All three major indexes are looking to close October higher as they pace for third-straight weekly wins.
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Amazon.com Inc (NYSE:AMZN) stock earlier hit a record high and was last seen up 11.4% at $248.25, breaking above long-term overhead resistance at $240. The company reported a third-quarter earnings and revenue beat, but its fourth-quarter sales forecast also came in above expectations. Options traders are buzzing, with 1.39 million calls and 673,000 puts exchanged already, 4 times the average intraday pace. Most popular is the expiring weekly 10/31 250-strike call, where new positions are being sold to open. The 200-day moving average has been a floor of support in recent months, aiding in the stock's now 13% year-to-date lead.
Software stock Twilio Inc (NYSE:TWLO) was last seen up 18.1% at $133.33, among the best on the New York Stock Exchange (NYSE), after the company reported a third-quarter earnings and revenue win. A hiked full-year forecast is also boosting shares. Analysts are flooding in, with no fewer than 13 price target hikes already issued, including one to $150 from $135 at UBS. In 2025, TWLO has added 23%.
One of the worst NYSE performers today is Advance Auto Parts Inc (NYSE:AAP), last seen down 7.8% to trade at $47.50, brushing aside a third-quarter earnings and revenue beat. Analysts have handed out several price-target hikes in response, the highest from J.P. Morgan Securities to $62 from $44. AAP is clinging to its year-to-date breakeven mark.