U.S. stocks were in the green on Wednesday, ahead of good corporate results. The Dow Jones Industrial Average gained 0.43% to 28,846, the S&P 500 index rose 0.34% to 3,287 and the Nasdaq Composite Index jumped 0.37% to 9,303.
Advanced Micro Devices, Inc.
Non-index stocks have also posted gains and losses recently. Shares of Advanced Micro Devices, Inc. (AMD, Financial) fell more than 7% on Wednesday after the company announced fourth quarter results. The company posted earnings of 32 cents per share, beating earnings estimates by 1 cent. Revenue of $2.13 billion topped expectations by $20 million.
“2019 marked a significant milestone in our multi-year journey as we successfully launched and ramped the strongest product portfolio in our 50-year history,” said Dr. Lisa Su, AMD's president and CEO.
In the trimester, the gross margin reached 45% compared to 38% a year ago and 43% in the third quarter. Non-GAAP gross margin was 45% compared to 41% a year ago and 43% in the most recent quarter.
Further, the operating income was $348 million, higher than $28 million in 2018 and $186 million in the prior quarter. Non-GAAP operating income was $405 million compared to $109 million a year ago and $240 million in the prior quarter. Those improvements were explained by revenue growth and higher margins. The free cash flow was $400 million compared to $79 million a year ago and $179 million in the prior quarter.
Looking forward to the first quarter of 2020, the company expects revenue to be $1.8 billion, plus or minus $50 million, and non-GAAP gross margin to be 46%.
During the quarter ended Sept. 30, Ken Heebner sold out the stock, while Pal Tudor Jones boosted his holding by 31% to 62,448 shares.
Overall market gainers
• L Brands, Inc. (LB, Financial) +13.5%
• General Electric Company (GE, Financial) +10%
• F5 Networks Inc (FFIV, Financial) +1.1%
• Broadcom Inc (AVGO, Financial) +0.5%
Losers
• KLA Corp (KLAC, Financial) -1.4%
• Qorvo Inc (QRVO, Financial) -1.3%
• NVIDIA Corp (NVDA, Financial) -1.1%
• Garmin Ltd (GRMN, Financial) -0.9%
• Ford Motor Co (F, Financial) -0.6%
Global markets
The main European stock markets traded in the green.The UK.'s FTSE 100 gained 0.04%, France's CAC 40 jumped 0.49%, Germany's Dax advanced 0.16% and Spain's Ibex 35 rose0.66%.
In Asia, Japan's Nikkei 225 gained 0.71%, India’s BSE Sensex rose 0.57%, Hong Kong's Hang Seng plummeted 2.82% and China's Shanghai Composite declined 2.75%.
Disclosure: The author holdsno positions in any stocks mentioned.
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