NEW YORK ( TheStreet) -- The S&P 500 made fresh all-time highs as Federal Reserve Chairman Ben Bernanke reassured investors that the Fed would continue to support the economy.
Thursday's action saw both eBay (EBAY) and Intel (INTC) trading lower from poor earnings results. It didn't get any easier for the tech sector as both Google (GOOG) and Microsoft (MSFT) missed top- and bottom-line estimates.
Google missed top-line estimates for the seventh quarter in the row, as higher tax rates and expenses plagued its earnings per share. On CNBC's "Fast Money" TV show, Karen Finerman said because of those factors, the miss looks worse than it actually is.
However, she did note that the lower cost-per-clicks reported was pretty troubling. She said she was long the stock and would probably look to add more, although likely not Friday.Guy Adami said that when Google was making its push higher, $850 was seen as a level of resistance; that has since turned to support. Although he doesn't expect the stock to get that low, it is a good reference point for traders to get out of a long position if it fails to hold. Brian Kelly noted that we're starting to see a lot of companies missing top-line estimates, which means companies are failing to grow. This is troubling because the market has already started to price in revenue and earnings growth of 4%-6% and that's simply not happening. Dan Nathan added that Google tends to be volatile around earnings, citing that the company doesn't provide a whole lot of guidance for investors and traders. The show's host, Melissa Lee, added that Google has moved up 20% since its last earnings report back in April. On Microsoft, the crew talked to Dan Niles, co-CIO of Alpha One Capital Partners, who noted that it's the fourth top-line miss in the past five earnings reports for the company, with slumping PC sales continuing to plague results. He also said the company missed revenue estimates for all five of its major business segments. "Shame on you" if investors didn't take any money off the table with the stock up over 30% year to date, Nathan said. He added the Surface tablet has been an absolute disaster and the cloud is "so necessary" for Microsoft to get right.
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