Stocks fell lower on Wednesday as investors weighed a large batch of quarterly earnings and looked ahead toward more mega-cap tech reports and a key labor market report later in the week. The Dow Jones Industrial Average declined over 90 points, while the S&P 500 Index and Nasdaq Composite lost about 0.3% and 0.6%, respectively.
Here's how the market settled on Wednesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
On the Earnings Front:
Alphabet
"People are asking longer and more complex questions and exploring a wider range of websites," CEO Sundar Pichai said, speaking on the search engine's AI Overviews -- which now reach 1 billion users on a monthly basis. "What's particularly exciting is that this growth actually increases over time as people learn that Google can answer more of their questions."
Advanced Micro Devices
"AMD numbers were essentially in line with consensus and our preview, and we were somewhat surprised at the selloff after hours," Morgan Stanley analyst Joseph Moore wrote in a note to clients. "That said, we still see 2024-25 as investment years for the AI opportunity, and think some revenue/earnings expectations are still too high."
Reddit
"It was another strong quarter for Reddit and our communities as we achieved important milestones, including new levels of user traffic, revenue growth, and profitability," CEO Steve Huffman said in a statement. "Reddit continues to be one of the most visited and trusted sites in the world with opportunities available to us that aren't available to most companies."
Chipotle Mexican Grill
For its full year, Chipotle reiterated its same-store sales growth outlook to increase by a mid- to high-single-digit percentage. The company also expects to open between 285 and 315 new restaurants this year. For 2025, Chipotle plans to open between 315 and 345 new locations, with more than 80% of those restaurants having a Chipotlane.
Eli Lilly
The drugmaker also lowered its full-year outlook, noe guiding for adjusted earnings of between $13.02 and $13.52 per share, down from its prior forecast of $16.10 to $16.60 per share. Eli Lilly also now expects full-year sales of between $45.4 billion and $46 billion, the low-end of its previous guidance for revenue of as much as $46.6 billion.
In Economic News:
Private Payrolls in October rose to their highest level in more than a year, ADP reported Wednesday, despite major labor market disruptions throughout the month. Employers hired 233,000 new workers, the payrolls processing firms said, above September's upwardly revised print of 159,000 and well ahead of expectations. Moreover, wages grew 4.6% annually in October.
"Even amid hurricane recovery, job growth was strong in October," said Nela Richardson, chief economist at ADP, in a statement. "As we round out the year, hiring in the U.S. is proving to be robust and broadly resilient."
In the News:
Super Micro Computer
For Thursday:
Investors will reacts to earnings from companies including Meta Platforms