Wall Street erases the initial decline this Wednesday and moves into the green across all of its indices, as traders digest an avalanche of earnings results and prepare for more reports from big tech companies.
The Dow Jones Industrial Average rises 0.4%. The S&P 500 rises 0.2%and the Nasdaq Composite does so by 0.3%.
Alphabet began an important week for the profits of large technology companies. Google’s parent company beat analyst expectations by seeing strong quarterly revenue growth in its cloud business. Shares rose more than 6%.
Meanwhile, chipmaker AMD fell 9% and dragged down the broader semiconductor sector as its fourth-quarter revenue guidance failed to impress investors.
Wall Street faces a week full of data
Shares of Caterpillar, a construction equipment maker, weighed on the Dow. Shares fell nearly 5% on Wednesday after the company missed earnings expectations in the third quarter and lowered its full-year revenue guidance.
Tech titans Meta Platforms and Microsoft are scheduled to report on Wednesday, while Apple and Amazon will report on Thursday.
In the economic sphere, the latest data pointed to a mixed outlook.
The US economy grew at a slower pace than expected in the third quarter, according to gross domestic product (GDP) figures for that period. GDP rose at an annualized rate of 2.8%, while economists surveyed by Dow Jones expected a 3.1% increase.
However, payroll data on Wednesday signaled a stronger-than-expected labor market. According to ADP’s latest report for October, private sector job creation hit its highest level in more than a year.
The S&P 500 and Nasdaq posted a winning session on Tuesday. However, the Dow lagged, falling slightly.
“Growth-oriented stocks, like the NASDAQ 100, led again,” Rob Haworth, senior investment strategist at US Bank Asset Management, said on Tuesday. “We are closely monitoring technology earnings reports to ensure that enterprise investment in artificial intelligence and other productivity-enhancing tools remains robust to support strong earnings growth in the future.”
Source: Ambito
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