AMZN, MSFT Boost Nasdaq

Microsoft handily beat analysts estimates, posting first-quarter net income of $3.574 billion or $.40 cents a share, down from $4.373 billion or $.48 cents a share last year. Revenues for the quarter were $12.92 billion, down from $15.06 billion in the prior year's quarter. Better than expected but still down year over year. Nevertheless, the stock was up 10% on the open, but has given some of that back as the rest of the market is not participating.

Amazon, on the other hand, is up a whopping 20%, on some very robust earnings results. Third-quarter profits were up 69% helped by a 44% rise in sales of electronics and general merchandise. Net income for the quarter increased to $199 million, or 45 cents a share, from $118 million or 27 cents a share in the year ago quarter. Overall sales were up 28% to $5.45 billion. Amazon is forecasting sales growth between 21% and 35% for the fourth quarter, with net income projected to rise between 10% and 56%. Great numbers in the face of a tough retail environment, but the stock is now trading at a 74 p/e. A bit much perhaps?