Sign InWednesday Markets: Nasdaq Rises, Key Tech Earnings Await
Alex Vellor
The Nasdaq Composite climbed 0.78% to a new high on Tuesday, driven by gains in tech stocks, while the S&P 500 inched up 0.16%. Meanwhile, the Dow Jones Industrial Average declined by 154.52 points, or 0.36%. As major tech firms prepare to report earnings this week, the focus of investors is shifting toward understanding the potential impact on the market.
Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT) are set to announce their quarterly earnings on Wednesday, followed by Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) on Thursday. Before markets opened on Wednesday, Alphabet (NASDAQ:GOOGL, GOOG) shares were up over 5% in premarket trading, reflecting confidence in its solid performance.
Alphabet’s quarterly report showed continued strong growth. Its cloud division reported $11.35 billion in revenue, up nearly 35% from last year, while its core search business generated $49.4 billion, marking a 12.3% increase from the same period in 2023. This solid cloud growth and reliable search revenue underscore Alphabet’s resilience, positioning it well in a rapidly evolving digital economy.
Premarket Movers:
| Company | Stock Ticker | Stock Movement | Reason |
|---|---|---|---|
| Alphabet | GOOGL | +6.5% | Q3 results topped estimates due to growth in advertising revenue. |
| AMD | AMD | -8% | Q4 revenue outlook missed estimates, with underwhelming guidance. |
| Caterpillar | CAT | -3.7% | Q3 earnings and revenue missed analyst expectations. |
| Biogen | BIIB | +1.9% | Raised annual earnings guidance and reported strong Q3 results. |
| Kraft Heinz | KHC | -2.5% | Steeper-than-expected revenue fall due to weak demand. |
| Humana | HUM | +0.9% | Beat Q3 profit estimates with strong Medicare Advantage business. |
| Eli Lilly | LLY | -6.8% | Missed Q3 profit estimates despite high demand for weight-loss drug. |
| Estee Lauder | EL | -0.3% | Named new CEO ahead of quarterly earnings release. |
U.S. Private Payrolls Surge in October
U.S. private payrolls growth defied expectations in October, despite potential disruptions from recent hurricanes and strikes. The ADP National Employment Report, jointly developed with Stanford’s Digital Economy Lab, showed private payrolls increased by 233,000 jobs last month, up from a revised 159,000 in September. This exceeded economists' forecast of a 114,000 gain.
The ADP report arrived ahead of Friday’s official October employment report from the Bureau of Labor Statistics (BLS). While ADP and BLS data have shown little correlation in recent months, ADP figures have tended to understate actual payroll growth. Economists expect Friday’s BLS data to show a 90,000-job increase in private payrolls, down from September's 223,000. Factoring in government employment, October's nonfarm payrolls are forecast to rise by 115,000, with the unemployment rate holding at 4.1%.
Economic Data and Consumer Confidence
The Conference Board’s consumer confidence index for October jumped more than 11%—its largest increase since March 2021—reaching a reading of 138. This figure sits well above the sub-80 mark often considered a recession signal, indicating growing optimism about the U.S. economy. However, the Bureau of Labor Statistics reported a decline in job openings, which fell to 7.44 million in September, the lowest since January 2021 and below Wall Street’s expectations. This drop suggests potential cooling in the labor market as fewer positions remain open across sectors.
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Alex Vellor
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