Wednesday, October 30, 2024
This afternoon, market indexes slipped from earlier gains, closing near session lows. Investors remain cautious as they await significant upcoming events: Friday’s Jobs Report, next week’s Federal Reserve decision on interest rates, and the General Election on November 5.
The Dow Jones Industrial Average fell by -0.22%, losing 99 points. The S&P 500 saw a slightly larger decline of -0.33%, down 19 points. Meanwhile, the Nasdaq, which finished at an all-time high yesterday, dropped -0.56%, or 104 points. Although the small-cap Russell 2000 started strong, it ended the session down -0.23%.
Surprising Spike in Pending Home Sales
Early data on Pending Home Sales for September revealed an unexpected increase of +7.4%, following a +0.6% rise in the previous month. This marks the highest level recorded in six months.
Last week, Existing Home Sales showed a decrease, dropping to 3.84 million annualized units from 3.88 million the week before.
Meta Platforms Surpasses Earnings Expectations
Meta Platforms (META), rated as Zacks Rank #2 (Buy), impressed investors with its Q3 earnings. The company announced earnings of $6.03 per share, significantly exceeding the $5.19 expected by analysts, supported by revenues of $40.59 billion—a +19% increase from the previous year.
Additionally, Daily Active People (DAP) rose by +5% year over year to 3.29 billion, while the Average Price per Advertisement increased by +11%. Despite this positive news, shares dropped -1.8% in after-hours trading, although they remain up more than +70% year to date.
Microsoft Reports Strong Q1 Performance
Microsoft (MSFT) also delivered a positive report this afternoon, beating analysts’ projections for fiscal Q1. The company posted earnings of $3.30 per share on revenues of $65.6 billion, surpassing the consensus of $3.08 and $64.41 billion, respectively.
Strong demand for AI capabilities, particularly for ChatGPT, has fueled growth within Microsoft’s AI division. Its Commercial Cloud revenue totaled $38.9 billion, exceeding the expected $38.1 billion estimate. Following this news, shares increased by +3.5% in late trading, adding to a modest year-to-date gain of +16%.
Starbucks Matches Earnings Estimates
In its first earnings announcement under former Chipotle CEO Brian Niccol, Starbucks (SBUX) met Wall Street’s estimate of 80 cents per share, with total revenues reaching $9.07 billion. However, global comparable store sales fell by -7%, largely impacted by a -14% decline in China. While investors remain hopeful that Niccol can lead a turnaround, Starbucks currently holds a Zacks Rank #4 (Sell).
Market Outlook for Thursday
Looking ahead to Thursday, along with the PCE report and weekly jobless claims data, a range of earnings reports will be released in the morning. These include updates from Mastercard (MA), Uber (UBER), ConocoPhillips (COP), and Bristol Myers (BMY).
After the market closes, major players such as Apple (AAPL) and Amazon (AMZN) will join the earnings parade, along with Intel (INTC) and more.
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Zacks Identifies Top Semiconductor Stock
Zacks has spotlighted a semiconductor stock that is significantly smaller than NVIDIA, which has soared over +800% since our recommendation. While NVIDIA remains robust, this new top choice has much potential for growth.
With promising earnings growth and a widening customer base, it’s set to capitalize on the booming demands for Artificial Intelligence, Machine Learning, and the Internet of Things. The global semiconductor manufacturing market is projected to expand from $452 billion in 2021 to $803 billion by 2028.
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Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Intel Corporation (INTC): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Mastercard Incorporated (MA): Free Stock Analysis Report
Bristol Myers Squibb Company (BMY): Free Stock Analysis Report
ConocoPhillips (COP): Free Stock Analysis Report
Starbucks Corporation (SBUX): Free Stock Analysis Report
Uber Technologies, Inc. (UBER): Free Stock Analysis Report
Meta Platforms, Inc. (META): Free Stock Analysis Report
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