U.S. stock futures are pointing to a higher open on Friday, boosted by strong tech earnings reports from several corporations including Alphabet, Amazon, and Microsoft which comes as the euro continues to slide against the U.S. dollar following yesterday’s dovish move by ECB to keep it prime interest rate unchanged while announcing its quantitative easing program of €30 billion in net asset purchases will continue through the end of September 2018 or beyond if necessary.
During a press conference yesterday with ECB President Mario Draghi, he said that a “large majority of the Governing Council expressed its preference for keeping it open-ended” concerning the ECB’s decision to keep open and lengthen the period of its asset purchase program through September 2018 while citing a variety of reasons such as “uncertainty.”
Draghi indicated that tapering of its asset purchases “wasn’t discussed” at their policy meeting and admitted that their decision to lengthen their asset purchases through September 2018 was just a downsize of its €60 billion asset purchase program which continues through December 2017.
Strong Tech Earnings
Bullish sentiment in the market over the past several weeks has been fueled by a dovish ECB, decent corporate earnings, and the hope of large scale tax cuts in the U.S.
On Thursday several tech corporations including Alphabet-Google, Amazon, and Microsoft posted strong earning reports that outperformed estimates from analysts.
Alphabet posted total Q3 quarterly revenues of $27.8 billion that showed an increase of 24 percent year over year.
Google site revenues were $19.7 billion for the quarter, up 23 percent year over year, led by mobile search and a strong performance from You Tube.
“YouTube continues to see phenomenal growth as the premier global destination where people go to watch video. Three of the key areas we are focused on are; strengthening the existing community, continuing to drive growth and expanding our subscriptions business” said Google CEO Sundar Pichai during the conference call.
Pichai reported that YouTube now has over 1.5 billion users and said that on average, these users spend 60 minutes a day on mobile.
He also explained that YouTube receives over 100 million hours of watch time in the living room every day, up 70 percent in the past year.
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