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Nasdaq Falls Over 1% as Wells Fargo Surpasses Expectations

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In the latest trading session, U.S. stocks experienced a decline, with the Nasdaq Composite dropping more than 1% on Friday. The Dow traded down 0.02% to 33,622.97, while the Nasdaq fell 1.27% to 13,401.56. The S&P 500 also fell, dropping 0.64% to 4,321.66.

Energy shares, however, saw an increase of 2.4% during this trading session, while information technology shares fell by 1.5%.

One of the top headlines from Fridayโ€™s trading is that Wells Fargo & Company (WFC) reported better-than-expected earnings for its third quarter. The bankโ€™s quarterly earnings per share (EPS) reached $1.48, surpassing the consensus of $1.24 and the previous yearโ€™s EPS of $0.86. Additionally, the bank reported third-quarter revenues of $20.86 billion, marking a 21% year-over-year increase and surpassing the consensus of $20.11 billion. For the fiscal year 2023, Wells Fargo expects a net interest income that is approximately 16% higher than the previous year, with the fourth quarter of 2023 expected to reach around $12.7 billion.

In terms of individual equities, Sigma Additive Solutions, Inc. (SASI) saw its shares soar by 115% after announcing the signing of a definitive agreement for the acquisition of NextTrip Holdings, Inc. Comtech Telecommunications Corp. (CMTL) also experienced a boost, with its shares shooting up 28% after posting better-than-expected fourth-quarter results. SunOpta Inc. (STKL) shares were up by 27% after the company disclosed third-quarter preliminary results, asset sales, and CFO transition details.

On the other hand, Outset Medical, Inc. (OM) shares dropped by 49% after reporting preliminary revenue for the third quarter that fell short of the consensus estimate. SMART Global Holdings, Inc. (SGH) also saw a decline of 44% in its shares after reporting worse-than-expected fourth-quarter financial results and issuing a weak forecast for the first quarter. Harmony Biosciences Holdings, Inc. (HRMY) experienced a 33% fall in its shares as the company announced topline results from the INTUNE Phase 3 study of pitolisant in patients with idiopathic hypersomnia (IH).

In commodities news, oil traded up 5% to $87.04, while gold traded up 3.1% at $1,941.40. Silver traded up 4.1% to $22.85, while copper fell 0.7% to $3.5670.

European shares were lower in todayโ€™s trading session. The eurozoneโ€™s STOXX 600 fell 0.98%, Londonโ€™s FTSE 100 fell 0.59%, and Spainโ€™s IBEX 35 Index fell 1.10%. The German DAX fell 1.55%, and the French CAC 40 fell 1.42%, while Italyโ€™s FTSE MIB Index fell 0.90%. Spainโ€™s annual consumer price inflation rose to a five-month high of 3.5% in September from 2.6% in August. Franceโ€™s annual inflation rate remained unchanged at 4.9% in September compared to the previous month.

In Asian markets, Japanโ€™s Nikkei 225 fell 0.55%, Chinaโ€™s Shanghai Composite Index fell 2.33%, and Hong Kongโ€™s Hang Seng Index dropped 0.64%. Indiaโ€™s S&P BSE Sensex slipped 0.2%. In economic news, India recorded a merchandise trade deficit of $19.4 billion in September, lower than the marketโ€™s expectation of a $23.3 billion gap. Chinaโ€™s producer prices declined 2.5% year-over-year in September, while consumer prices remained unchanged from a year ago.

Other economic data for the U.S. showed an increase in export prices by 0.7% month-over-month in September, while import prices rose 0.1% during the same period. The University of Michigan consumer sentiment declined to 63 in October from 68.1 in the previous month, marking the lowest reading in five months. Additionally, the total number of active U.S. oil rigs rose by 4 to 501 rigs this week.

In summary, the U.S. stock market experienced a decline, with the Nasdaq Composite falling over 1%. However, Wells Fargo outperformed expectations with its third-quarter earnings. Energy shares saw an increase, while information technology shares declined. Individual equities displayed mixed results, with some experiencing significant gains and others suffering losses. In commodities, oil and gold prices rose, while silver and copper showed mixed performance. European and Asian markets showed a downward trend, with various economic indicators influencing market sentiment.

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