Investors were pleasantly surprised by a durable goods report released this morning that showed orders for core capital goods rose 1.8% in May, well above the consensus estimate, which forecast a drop of 0.9%.
Heading into mid-day trading, the market was up 2%. Oracle (ORCL) was one of the stocks leading the charge, with gains of 9.1% as of mid-day. This came on the heels of Oracle’s fourth quarter earnings report, which showed better-than-expected results.
Despite profits declining 7% and earnings declining 4%, the company reported earnings per share of 46 cents, excluding one-time items. The consensus estimates called for 44 cents per share.
The primary reason for the decline in profits and earnings was a strong dollar. Since I see that changing in the future, I remain bullish on Oracle. I rate Oracle a B, or buy.