Stocks are little changed as investors evaluate rush of mixed earnings
Stocks were muted Wednesday as traders digested a deluge of earnings results and looked toward further reports from major technology companies.
The S&P 500 was marginally higher. The Dow Jones Industrial Average added 121 points, or 0.3%, while Nasdaq Composite traded near the flatline.
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 surged more than 6%.
Meanwhile, chipmaker AMD slid 10% as its fourth-quarter revenue guidance failed to impress investors. The broader semiconductor sector fell on the day as shares of Super Micro Computer plunged 32%.
Construction equipment stock Caterpillar weighed upon the Dow. Shares dropped 4% Wednesday after the company missed on earnings in the third quarter and lowered its full-year revenue guidance.
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.
Source: CNBC
