U.S. stocks opened lower on Friday as investors focus on 2nd quarter corporate earnings results with no major economic data out today and the record run for tech stocks is at risk during the close of the week.
Shares of GE are struggling in early trading and are down over 4 percent after the company’s 2nd quarter net profit dropped over 50 percent for the quarter, even as the company’s cash flow increased, and focus shifts to its industrial businesses.
GE CEO Jeff Immelt said during the earnings call that they expect cash flow to continue to improve throughout the year.
“We’ve reduced our Industrial structural costs year to date by $670 million and we are on track to meet or exceed our $1 billion cost reduction target for the year. The global scale of the Company, along with our ability to innovate industry-leading products and services, will help us navigate the current environment and unlock productivity across our businesses and markets” Immelt said today.
John Flannery will take over as GE CEO on August 1st.
Microsoft posted strong Q4 corporate earning results yesterday as the company seeks to build on its cloud computing platform.
“Innovation across our cloud platforms drove strong results this quarter” said Satya Nadella, CEO of Microsoft.
“Customers are looking to Microsoft and our thriving partner ecosystem to accelerate their own digital transformations and to unlock new opportunity in this era of intelligent cloud and intelligent edge” Nadella Nadella said.
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