S&P Closes Lower, Markets Brace for Big Tech Earnings
October 30,2024 04:33 pm EST
Stocks slipped on Wednesday as investors digested a deluge of earnings reports and looked toward more results from megacap technology companies.
The Dow Jones Industrials said goodbye to previous gains and fell 91.45 points to close Wednesday at 42,141.60.
The S&P 500 index staggered 19.19 points to 5,813.73
The NASDAQ ditched 104.82 points to 18,607.93.
Alphabet kicked off a major week for megacap tech earnings. The Google parent exceeded analysts' expectations as the company saw strong quarterly revenue growth from its cloud business. Shares jumped around 4%.
Elsewhere, earnings results were less upbeat. Shares of chipmaker AMD slid nearly 10% as its fourth-quarter revenue guidance failed to impress investors. The broader semiconductor sector fell as shares of Super Micro Computer plunged 31.4% after the departure of the company's auditor raised concerns about its financial statements.
Tech titans Meta Platforms and Microsoft are set to report on Wednesday, while Apple and Amazon are due Thursday.
On the economic front, the latest numbers pointed to a mixed backdrop.
The U.S. economy grew at a slower-than-expected rate in the third quarter, according to gross domestic product figures for the third quarter. GDP rose at a 2.8% annualized rate, while economists surveyed by Dow Jones had been looking for an increase of 3.1%.
However, payrolls data on Wednesday pointed to a stronger-than-expected labor market. According to the latest ADP report for October, private-job creation jumped to its highest level in more than a year.
Prices for the 10-year Treasury dropped by the close, raising yields to 4.28% from Tuesday's 4.26%. Treasury prices and yields move in opposite directions.
Oil prices jumped $1.76 to $68.97 U.S. a barrel.
Prices for gold jumped $16.20 an ounce to $2.797.30 U.S.
S&P Closes Lower, Markets Brace for Big Tech Earnings
Currencies
