Wall Street saw a volatile trading day on Wednesday, a reflection of the market’s struggle to interpret a mixed bag of corporate earnings and economic indicators. The U.S. economy, according to advance estimates, expanded at an annualized rate of 2.8% in the third quarter. While positive, this marked a slowdown from the previous quarter’s 3% pace and fell short of analyst expectations of 3%.
Despite the slight economic deceleration, the labor market showed strength. The ADP National Employment report revealed that private payrolls surged by 233,000 in October, a significant jump from the revised 159,000 in September and far exceeding the forecast of 115,000. This robust job growth, coming ahead of Friday’s official jobs report, suggests continued resilience in the labor market.
Individual company news also influenced the market. Advanced Micro Devices (AMD) stock tumbled 10% after releasing quarterly results that met expectations but failed to excite investors. This decline dragged down the broader semiconductor sector, with the iShares Semiconductor ETF (SOXX) falling over 3%. On the other hand, Alphabet Inc. soared over 5% after posting a strong earnings report that surpassed Wall Street expectations, boosting optimism around mega-cap tech stocks.
At midday, major U.S. indexes traded in a mixed fashion. The S&P 500 and the tech-heavy Nasdaq 100 remained flat, while the small-cap Russell 2000 outperformed, gaining 0.5%.
Beyond the stock market, gold prices continued their upward trajectory, reaching an all-time high, up 0.5% to $2,787 per ounce. Oil prices also surged 2% fueled by concerns about supply constraints. Bitcoin, on the other hand, pulled back from recent highs, easing 0.8% to $72,100.
Key Stock Movers:
*
Super Micro Computer Inc. (SMCI)
plunged 33% after auditors Ernst & Young announced their resignation amid reporting issues, five days ahead of the company’s earnings report.*
Eli Lilly and Company (LLY)
fell 8% following its earnings release.*
Visa Inc. (V)
climbed 3.6% after reporting earnings.*
AbbVie Inc. (ABBV)
surged over 5% on strong earnings news.*
Caterpillar Inc. (CAT)
declined 1.4% following its earnings announcement.*
Chubb Ltd. (CB)
dipped 1% after releasing earnings results.*
Mondelez International Inc. (MDLZ)
gained 1% after reporting earnings.*
Chipotle Mexican Grill Inc. (CMG)
dropped over 7% following its earnings report.*
Snap Inc. (SNAP)
jumped 15% after announcing positive earnings results.*
Reddit Inc. (RDDT)
soared 38% following its earnings release.*
Automatic Data Processing Inc. (ADP)
rose 1% after reporting earnings.*
Garmin Ltd. (GRMN)
gained 24% on the back of strong earnings results.Major companies reporting earnings after the close on Wednesday include Microsoft Corp. (MSFT), Meta Platforms Inc. (META), Amgen Inc. (AMGN), and Booking Holdings Inc. (BKNG).
