Nasdaq Dips 1.5%; Alphabet Misses Q3 Estimates

Nasdaq Dips 1.5%; Alphabet Misses Q3 Estimates

U.S. stocks traded mostly lower this morning, with the Nasdaq Composite dropping around 1.5% on Wednesday.

Following the market opening Wednesday, the Dow traded up 0.10% to 31,868.78 while the NASDAQ fell 1.52% to 11,028.45. The S&P 500 also fell, dropping, 0.63% to 3,834.92.

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Leading and Lagging Sectors


Health care shares climbed 0.9% on Wednesday. Leading the sector was strength from NextGen Healthcare, Inc. NXGN and Community Health Systems, Inc. CYH.


In trading on Wednesday, communication services shares dipped by 3.4%.


Top Headline

 

Alphabet Inc. GOOGL reported weaker-than-expected earnings results for its third quarter after the closing bell on Tuesday.


YouTube and Network revenue were down on a year-over-year basis, bringing overall Google Ad revenue to $54.48 billion, up from last year’s $53.13 billion.


Equities Trading UP

 

  • New Oriental Education & Technology Group Inc. EDU shares shot up 17% to $24.71 after the company reported better-than-expected Q1 EPS and sales results.
  • Shares of ChampionX Corporation CHX got a boost, shooting 15% to $28.40 after the company reported Q3 results and announced a $750 million buyback authorization.
  • Community Health Systems, Inc. CYH shares were also up, gaining 13% to $2.40. The company is set to release quarterly earnings after the closing bell today.

 

Equities Trading DOWN

  • Stride, Inc. LRN shares tumbled 25% to $34.77 following weak quarterly earnings.
  • Shares of Cardio Diagnostics Holdings Inc. CDIO were down 30% to $4.2056. Cardio Diagnostics Holdings reported the completion of its business combination with Mana Capital Acquisition Corp.
  • Taysha Gene Therapies, Inc. TSHA was down, falling 19% to $2.4005 after the company announced a $30 million public offering of common stock.

 

Also check out: Market Volatility Decreases As US Stocks Extend Gains


Commodities

In commodity news, oil traded up 1.7% to $86.76, while gold traded up 0.7% at $1,670.30


Silver traded up 1.4% to $19.615 on Wednesday while copper rose 3.3% to $3.5075.


Euro zone


European shares were mixed today. The eurozone’s STOXX 600 fell 0.2%, London’s FTSE 100 fell 0.2% while Spain’s IBEX 35 Index rose 0.2%. The German DAX gained 0.3%, French CAC 40 fell 0.2% and Italy’s FTSE MIB Index fell 0.3%.

Loans to households in the Eurozone increased 4.4% year-over-year in September, while consumer confidence in France rose to 82 in October from 79 in September.

 

Economics

 

  • The trade gap on goods increased to a three-month high of $92.2 billion in September from a $87.3 billion deficit in the previous month.
  • Wholesale inventories in the US increased by 0.8% month-over-month to $921.7 billion in September.
  • Building permits rose 1.4% month-over-month to an annualized rate of 1.564 million in September.
  • US new home sales fell to a 603,000 annual rate in September compared to a revised 677,000 a month ago.
  • The Energy Information Administration’s weekly report on petroleum inventories in the U.S. will be released at 10:30 a.m. ET.
  • The survey of business uncertainty report for October will be released at 11:00 a.m. ET.
  • The Treasury is set to auction 5-year notes at 1:00 a.m. ET.


Check out this: Investor Sentiment Improves As Wall Street Rises For Third Straight Session


COVID-19 Update

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 99,141,250 cases with around 1,093,330 deaths. India confirmed a total of at least 44,645,760 cases and 528,980 deaths, while France reported over 36,666,380 COVID-19 cases with 156,640 deaths. In total, there were at least 633,889,150 cases of COVID-19 worldwide with more than 6,586,230 deaths.

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