Wall Street’s key indexes opened lower on Wednesday, but the trend turned more positive after the first half hour.
At the time of review, the S&P 500 was up 0.2 percent and the Dow Jones was up 0.4 percent. The technology-focused Nasdaq 100, on the other hand, was at zero.
Server company Super Micro Computer was reeling from a 28 percent decline after the consulting and auditing firm Ernst & Young said he was resigning from the company, citing concerns about Super Micro’s governance practices and transparency.
Last month, the Wall Street Journal reported that the US Department of Justice has opened an investigation into claims by a former Super Micro employee that the company violated accounting rules.
All semiconductor companies in the S&P 500 index were also in the red. Inter alia Advanced Micro Devices was down nearly nine percent.
AMD’s operating result reported on Tuesday exceeded analysts’ expectations, and its revenue was slightly above the consensus forecast. AMD’s guidance for the current quarter is in line with forecasts, but with these prospects, AMD’s fourth-quarter turnover is expected to drop by around 22 percent.
Applied Materials was down 2.2 percent, Microchip Techonology in a decrease of 1.8 percent and Nvidia 1.7 percent down.
Among other S&P 500 companies, there was a rapid increase in, among others Google parent company Alphabetwhich bounced at Wednesday’s open after a strong earnings report. At the time of the review, Alphabet was up about six percent.
Both Alphabet’s earnings and revenue exceeded consensus forecasts. The turnover of the company’s cloud services swelled to 11.4 billion dollars from 8.4 billion dollars in the third quarter of last year.
A technology company known to consumers for, among other things, sports watches Garmin was increasing by more than 20 percent at the time of the review.
Garmin’s July-September earnings per share reached $1.99, while analysts’ consensus predicted $1.44. The company’s net sales exceeded expectations of $1.4 billion to $1.6 billion.
Jobs in the private sector exceeded expectations
On Wednesday, the market will also digest fresh macroeconomic data. There are indications, among other things, that the pull of the US labor market has remained strong.
In October, more than twice as many jobs were created in the private sector than expected, and in terms of quantity, the increase in jobs was the highest in more than a year, totaling 233,000. The September reading was revised upwards to 159,000 from the previously reported 143,000.
After the latest data, the market is reassessing the likelihood of a rate cut by the US Federal Reserve at the next meeting, although according to Bloomberg, the reaction was moderate.
Source: www.arvopaperi.fi
