Thursday Markets: TSMC Profits Surge, Nokia Faces Decline

The Dow Jones Industrial Average reached a new record high on Wednesday, adding 337.28 points, or 0.79%, to close the session strong.
This recovery came after a brief setback in the previous trading day. The broader S&P 500 also moved up, rising by 0.47%, while the tech-heavy Nasdaq Composite gained 0.28%. Investors are seeing optimism as third-quarter earnings reports begin to roll in, with a solid 79% of companies so far exceeding analysts’ forecasts.
Premarket Movers:
Company | Event / Stock Movement |
---|---|
Alcoa (NYSE:AA) | Shares rose after the aluminum producer unveiled better-than-anticipated adjusted core earnings for the third quarter that were boosted by a jump in alumina prices. |
Expedia (NASDAQ:EXPE) | Shares spiked following a report in the Financial Times that ride-hailing giant Uber (NYSE:UBER) had explored a possible offer for the digital travel booking firm. |
CSX Corporation (NASDAQ:CSX) | Shares slumped on weaker-than-expected third-quarter earnings per share and revenue, with analysts citing the impact of recent hurricane activity. |
Fortinet (NASDAQ:FTNT) | Shares slipped after analysts at Mizuho downgraded their rating of the security software business. |
SolarEdge Technologies (NASDAQ:SEDG) | Shares dipped after analysts at Guggenheim lowered their rating of the solar company to "Sell" from "Neutral". |
Topgolf Callaway Brands (NYSE:MODG) | Dropped after B. Riley analysts slashed their rating of the golf company due to weakness at its eponymous chain of driving ranges. |
TSMC | Chip stocks rose after TSMC's blowout earnings report. |
Nvidia (NASDAQ:NVDA) | Shares climbed 3.1% in premarket trading. |
Advanced Micro Devices (NASDAQ:AMD) | Shares added 2.7%. |
Broadcom (NASDAQ:AVGO) | Shares increased by 2.8%. |
Intel (NASDAQ:INTC) | Shares advanced by 1.2%. |
Qualcomm (NASDAQ:QCOM) | Shares increased by 2.3%. |
Micron Technology (NASDAQ:MU) | Shares gained 2.2%. |
Solid Earnings Bolster Market Sentiment
Earnings season has kicked off on a positive note. Of the roughly 50 companies in the S&P 500 that have reported their third-quarter results, a significant majority have outperformed expectations. This has injected a dose of confidence into the markets, encouraging a rally across major indices.
Morgan Stanley (NYSE:MS) was one of the standout performers on Wednesday. Its shares surged 6.5% following better-than-expected earnings. The investment bank's robust results reflected solid revenue growth in wealth management, an area it has strategically prioritized. The gains in Morgan Stanley’s stock helped lift the Dow, which has a heavy concentration of financial stocks.
Meanwhile, United Airlines (NYSE:UAL) also posted strong earnings, sending its shares up by 12.4%. The airline benefited from a steady recovery in travel demand, especially for international routes. While high fuel costs have been a concern for the airline industry, United’s ability to pass on some of those costs to passengers helped buoy its results.
TSMC Rides the AI Wave
The semiconductor sector, which has been at the heart of the tech rally, saw another boost on Thursday as Taiwan Semiconductor Manufacturing Company (NYSE:TSM) reported a sharp increase in profits.
The world’s largest producer of advanced chips revealed a 54% jump in net profit for the third quarter, beating analyst expectations.
In premarket trading, U.S. shares of TSMC surged over 8%. The company also provided an upbeat forecast, predicting revenue growth in the fourth quarter. TSMC’s success is closely tied to its role as a key supplier for tech giants like Apple and Nvidia, which rely on its chips for their high-demand products. The company has been a significant beneficiary of the ongoing demand for AI-related hardware, which has kept order books full.
The outlook for the semiconductor industry remains strong, particularly as companies across various sectors rush to integrate AI capabilities. For investors, TSMC’s positive earnings report and guidance signal potential continued growth in the AI chip market, which is a critical area to watch.
Nokia Struggles Amid Sales Decline
While U.S. stocks mostly celebrated positive earnings, Nokia (NYSE:NOK) faced challenges.
Shares of the Finnish telecom company dropped more than 5% after it reported an 8% decline in third-quarter sales. The company attributed the slump to a slowdown in the Indian market, a crucial region for Nokia’s growth strategy.
Despite the sales dip, Nokia’s profit increased by 22%, suggesting some cost management efforts have paid off. However, CEO Pekka Lundmark’s cautious tone regarding future earnings guidance did little to inspire confidence. He stated that the company’s full-year profit would likely fall within the lower half of its previously set range, tempering investor expectations.
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