The Dow Jones Industrial Average rose to another record high on Wednesday, as the broader market rebounded from the previous session's sell-off. The 30-stock index jumped over 300 points, while the S&P 500 Index and Nasdaq Composite added roughly 0.5% and 0.3%, respectively.
Here's how the market settled on Wednesday:
S&P 500 Index (NYSE: SPY): +0.47% or +27.20 points to 5,842.46
Dow Jones Industrial Average (NYSE: DIA): +0.79% or +337.28 points to 43,077.70
Nasdaq Composite Index (NASDAQ: QQQ): +0.28% or +51.49 points to 18,367.08
On the Earnings Front:
United Airlines (NASDAQ: UAL) reported better-than-expected third-quarter earnings late Tuesday, and announced a $1.5 billion share buyback program -- its first since before the coronavirus pandemic. The airline also expects to post adjusted earnings per share between $2.50 to $3.00 in the fourth quarter, topping estimates and the $2.00 earned a year earlier.
"Like other leading airlines and companies, we are initiating a measured, strategic share repurchase program," CEO Scott Kirby said in a note to staff on Tuesday. "Importantly, my commitment to you is that investing in our people and our business will always be my top priority even while we institute this share repurchase program."
Morgan Stanley (NYSE: MS) reported strong third-quarter earnings on Wednesday, following peers like JPMorgan Chase (NYSE: JPM), Goldman Sachs (NYSE: GS) and Citigroup (NYSE: C), as each of its three main segments topped expectations.
"The Firm reported a strong third quarter in a constructive environment across our global footprint. Institutional Securities saw momentum in the markets and underwriting businesses on solid client engagement. Total client assets have surpassed $7.5 trillion across Wealth and Investment Management supported by buoyant equity markets and net asset inflows. Our business model is delivering strong returns while accreting capital, producing an ROTCE of 18.2% through the first three quarters of 2024," CEO Ted Pick said in a release.
In the News:
Piper Sandler Chief Global Economist Nancy Lazar called Middle America the firm's top "emerging market" on Wednesday, citing the region's manufacturing and energy growth.
"Energy independence, relatively low corporate tax rates, and a no-longer-competitive China make the U.S. the place to invest," Lazar wrote in a note to clients. "Middle America is benefiting disproportionately, thanks to its cost advantages, and inbound investment/reshoring -- creating jobs and depressing unemployment."
Bank of America U.S. Economist Shruti Mishra believes the U.S. labor market will continue to soften following September's better-than-expected jobs report, naming three reasons: job growth was narrow; the month of September is historically a transitional as school years begin and summer jobs end; and the report only showed one month of data and not broader trends.
"The bottom line is that we don't think there was sufficient evidence to change our soft-landing outlook for the labor market," Misha wrote in a note. "Following the strong September employment report print, we revised our Fed call but made no change to our labor market outlook."
Novavax (NASDAQ: NVAX) shares dropped Wednesday after the biotech announced the U.S. Food and Drug Administration (FDA) put its COVID/ influenza combination vaccine's application on hold due to a single report of nerve damage in a patient in a phase two clinical trial. The federal regulator also post a hold on the company's stand-alone flu shot.
"Our goal is to successfully resolve this matter and to start our Phase 3 trial as soon as possible," said Dr. Robert Walker, chief medical officer at Novavax, in a release.
For Thursday:
Market participants will turn their attention towards September's U.S. retail sales, alongside quarterly earnings reports from companies including Taiwan Semiconductor Manufacturing (NYSE: TSM) and Netflix (NASDAQ: NFLX) on Thursday.