Microsoft was one of the strongest risers on the New York stock exchanges on Wednesday. The large American software group booked more turnover and profit last quarter than experts had expected.
Microsoft also saw the turnover of its important cloud services rise sharply, and the company expects that the investments in artificial intelligence (AI) will lead to further turnover growth. As a result, investors rewarded the share with a price gain of more than 7 percent.
The results of Google’s parent company, Alphabet were also appreciated. That group booked a profit for the first time with its cloud activities last quarter. Alphabet gained 1 percent.
Thanks to the price gains of Microsoft and Alphabet, the American tech exchange Nasdaq rebounded after the heavy price loss the day before. The indicator, which lost 2 percent on Tuesday, was 1 percent higher at 11,912 points shortly after the start of trading. The Dow Jones index gained 0.1 percent to 33,552 points, and the broad S&P 500 rose 0.2 percent to 4,078 points.
Activision Blizzard fell nearly 9 percent. The British competition watchdog CMA blocks Microsoft’s takeover of the computer game company. The CMA had previously stated that the acquisition would limit competition in the UK video games market. Microsoft, which makes the Xbox game computer, wants to buy the developer of games such as Call of Duty and World of Warcraft for $ 69 billion. The US authorities are also trying to stop the takeover. However, Brussels is still investigating whether the takeover may go ahead.
Boeing also gained 3.5 percent in market value. The American aircraft manufacturer suffered more losses than expected last quarter. Turnover was higher. Boeing also announced to increase production of the 737 MAX and the Dreamliner 787.
First Republic Bank, in turn, fell more than 20 percent, after which trading in the stock was temporarily halted. After a disappointing quarterly report, the regional bank saw almost half of its stock market value evaporate on Tuesday. During the recent banking crisis, customers withdrew many of their assets from the bank, rekindling fears for the bank’s survival. To save costs, the bank is going to lay off up to a quarter of its staff and wants to sell assets to strengthen its balance sheet.