Hair-Raising Facts to Know: Microsoft Corporation (NASDAQ: MSFT)

The Dow Jones industrial average fell sharply on Tuesday after Walmart shares dropped on the back of weaker-than-expected earnings.

As of 10:35 a.m. ET, the 30-stock index had pulled back 215 points. Walmart was by far the biggest decliner in the Dow, shedding more than 9 percent.

The S&P 500, meanwhile, slipped 0.4 percent, with consumer staples dropping 1.8 percent. The broad index was also pressured by interest rates trading near multi-year highs.

The benchmark 10-year U.S. note yield rose to 2.899 percent, after hitting its highest level since 2014 last week. The short-term two-year note yield, meanwhile, traded around a nine-year high.

Higher rates have kept Wall Street on edge recently as shareholders fear higher inflation could lead the Federal Reserve to tighten monetary policy faster than expected.

The S&P 500 practiced a 10.2 percent pullback between Jan. 26 and Feb. 8, losing $2.5 trillion in value, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. As of Friday’s close, the broad index had regained $1.3 trillion, Silverblatt said in a note. (Source: CNBC)

Stock in Focus: Microsoft Corporation (NASDAQ: MSFT)

Microsoft Corporation (NASDAQ: MSFT) has grabbed attention from the analysts when it experienced a change of 0.61% in the current trading session to trade at $92.56. A total of 8,483,799 shares exchanged hands during the intra-day trade contrast with its average trading volume of 28.36M shares, while its relative volume stands at 0.95. Relative volume is the comparison of current volume to average volume for the same time of day, and it’s displayed as a ratio. If RVOL is less than 1 it is not In Play on this trading day and Investors may decide not to trade it. If RVOL is above 2 it is In Play and this is more evidence Investors ought to be in the name. When stocks are *very* In Play one can see a RVOL of 5 and above. The higher the RVOL the more In Play the stock is.

Day traders strive to make money by exploiting minute price movements in individual assets (usually stocks, though currencies, futures, and options are traded as well), usually leveraging large amounts of capital to do so, therefore they trade on Stocks in Play. In Play Stocks are volatile enough to produce good risk and reward trading opportunities for both bull and bear traders intraday. Most company stocks have very little volatility. They generally move extremely slowly and they only produce big price swings when the company produces good or bad trading results, which may only happen a couple of times a year at best.

In deciding what to focus on – in a stock, say – a typical day trader looks for three things: liquidity, volatility and trading volume. Liquidity allows an investor to enter and exit a stock at a good price (i.e. tight spreads, or the difference between the bid and ask price of a stock, and low slippage, or the difference between the predictable price of a trade and the actual price). If a stock does not have good liquidity then it may take some time before a broker is able to negotiate a deal to buy or sell a stock and the broker may not be able to get the sell or buy price that the trader is looking for. This is a problem for day traders and it could mean the difference between a profitable and non-profitable trade.

Traders have different rules for what constitutes liquidity and a good guide is the volume of trades and volume of shares that are traded each day. 100,000 shares traded per day would be a minimum for most traders and some require 1,000,000.

Trading volume is a gauge of how many times a stock is bought and sold in a given time period (most commonly, within a day of trading, known as the average daily trading volume – ADTV). A high degree of volume indicates a lot of interest in a stock. Often, a boost in the volume of a stock is a harbinger of a price jump, either up or down.

Volatility is simply a measure of the predictable daily price range—the range in which a day trader operates. More volatility means greater profit or loss. After a recent check, Microsoft Corporation (NASDAQ: MSFT) stock is found to be 2.34% volatile for the week, while 2.85% volatility is recorded for the month.

Technical’s Snapshot:

The stock has a market cap of $714.83B and the number of outstanding shares has been calculated 7.77B. Based on a recent bid, its distance from 20 days simple moving average is 1.38%, and its distance from 50 days simple moving average is 4.65% while it has a distance of 18.64% from the 200 days simple moving average. The company’s distance from 52-week high price is -3.65% and the current price is 45.49% away from 52-week low price. The company has Relative Strength Index (RSI 14) of 56.42 together with Average True Range (ATR 14) of 2.49.

Stock’s Valuation:

Past 5 years growth of MSFT observed at 6.30%, and for the next five years the analysts that follow this company is expecting its growth at 11.07%. The stock’s price to sales ratio for trailing twelve months is 7.23 and price to book ratio for the most recent quarter is 9.06, whereas price to cash per share for the most recent quarter are 5.01. Its quick ratio for the most recent quarter is 2.90. Analysts mean recommendation for the stock is 1.80. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.

Disclaimer: Any news, report, research, and analysis published on Alphabetastock.com are only for information purposes.Alpha Beta Stock (ABS) makes sure to keep the information up to date and correct, but we didn’t suggest or recommend buying or selling of any financial instrument unless that information is subsequently confirmed on your own.Information in this release is fact checked and produced by competent editors of Alpha Beta Stock; however, human error can exist.

Jason P. Vasser gives us an insight into the most recent news hitting the Technology Sector in Wall Street. He has been an independent financial adviser for over 10 years in the city and in recent years turned his experience in finance and passion for journalism into a full time role. He performs analysis of Companies and publicizes valuable information for shareholder community.

Jason is an accomplished journalist who has a passion for travel. His desire to see the world has taken him to countries around the world and given him the opportunity to report for some of the top news organizations.

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