Stocks Mix as More Big Tech Earnings Reports Emerge; Gold at new record

AMD stock price levels to watch after earnings decline

12 minutes ago

Advanced micro devices (AMD) shares fell about 10% on Wednesday afternoon after the chipmaker reported it third-quarter profits that came in below expectations and issued a smooth quarter gain prospects, despite record data center revenues.

The stock has risen to the upper trendline of a descending channel, although lower volumes indicate larger market participants remained on the sidelines ahead of the company’s quarterly results.

Investors should pay attention to the key support levels on the AMD chart around $162, $132, and $112. If the stock resumes its longer-term uptrend, investors should keep an eye on a bullish price target around $275.

Read the full technical analysis piece here.

–Timothy Smit

Gold hits record highs as investors brace for stock volatility

1 hour and 10 minutes ago

Gold futures (GC1!) hit a new all-time high on Wednesday, briefly rising above $2,800 for the first time, as investors rushed to the precious metal as a safe haven investments in a context of uncertainty surrounding next week’s US presidential elections and simmering geopolitical tensions.

Gold futures eclipsed another all-time high yesterday, rising to $2,801.70 in early trading before giving up some of those gains. That makes gold one of the best-performing commodities this year, up about 35% and easily beating the S&P 500’s 22% gain.

Gold is traditionally seen as a safe haven when you expect stock market turbulence, or as a hedge against inflation. Many Americans to worry on how the outcome of next week’s presidential election could affect stock markets, the economy and their economies personal finance.

“Uncertainty ahead of next week’s US elections has also supported gold’s record rally this year, and we believe this will continue to contribute to gold’s upward momentum. Expect more volatility in the coming days as uncertainty about future US policy is likely to lead to a flight to safe havens,” ING analysts wrote on Wednesday.

Buying of gold by central banks, especially in China, prices pushed up throughout the year, as retail investors shied away from gold exchange traded funds (ETFs).

In recent months, private investors have not been alone billions poured into gold ETFs but also bought gold bars at their neighborhood Costco (COSTS), as uncertainty increased as to when the Federal Reserve would cut rates, the possibility arose that the The US would enter a recessionand rising tensions in the Middle East.

–Mrinalini Krishna

Why Wall Street is bullish on Google after the earnings results

1 hour and 27 minutes ago

Alphabet shares (GOOGL) rose 5% in afternoon trading to lead the Nasdaq Composite, after the Google parent company posted late yesterday third quarter profit that exceeded Street expectations and showed it artificial intelligence (AI) progress.

JPMorgan raised its price target on Alphabet from $208 to $212 and reiterated its overweight rating. The stock recently traded around $178.

Analysts at the company noted that “Google is feeling more confident” in the rollout of its AI search business; its strong cloud business, with revenue growing 35% year over year in the quarter; and benefit to corporate profits given the company’s plans to “reshape its cost structure” as the reason for the higher price target.

On the company’s earnings callAlphabet General Manager (CEO) Sundar Pichai said the company has seen Google Search usage increase among people using AI Overviews, and Google Lens generates 20 billion visual searches every month.

Citi analysts maintained their buy rating and price target of $212 for Alphabet. The broker, like JPMorgan, noted Google Cloud’s “accelerating growth driven by increased demand for GenAI,” thanks in part to Alphabet’s Gemini great language model.

Alphabet shares are up 27% since the start of 2024, slightly more than the Nasdaq Composite’s gain this year.

–Andreas Kessel

Charles Schwab expands 24-hour trading

3 hours and 10 minutes ago

Charles Schwab (SCHW) announced Wednesday that it plans to expand its 24-hour trading and become the latest broker to embrace 24-hour markets.

Select Schwab customers will be able to trade all S&P 500 and Nasdaq-100 stocks, as well as hundreds of exchange-traded funds (ETFs), anytime Monday through Friday. The company will gradually expand capabilities to all customers by 2025. Schwab clients can currently trade about two dozen ETFs during the overnight session.

“Our goal has always been to provide and expand access to 24/5 trading in a responsible manner that takes into account customer demand, the evolving dynamics of the overnight trading market, and – most importantly – provide customers of Schwab’s full library of educational content and 24-hour support to help them balance the opportunities and risks, as well as the unique considerations of overnight trading,” said James Kostulias, managing director and head of trading services for the firm, in a statement.

Brokers and exchanges alike have sought to capitalize on the exceptional performance of the US stock market in recent years by pushing for extend the trading day. Robinhood (CAP) launched its 24-hour market last year and has since expanded the list of stocks and ETFs that investors can trade in the middle of the night.

Intercontinental exchange (ICE), the parent company of the New York Stock Exchange, said last week that this is the case planned to expand trade on its digital platform up to 22 hours a day, a decision that executives say “underlines the strength of our U.S. capital markets and the growing demand for our listed securities around the world.”

–Colin Laidley

Super microcomputer tumbles as the auditor stops

3 hours and 47 minutes ago

Supermicrocomputer (SMCIShares fell 30% on Wednesday morning after accounting firm EY resigned as the company’s auditor following months of speculation about the company’s accounting practices.

EY, one of the “Big FourAccounting firms told Super Micro Computer’s board that the decision was made “in response to information that recently came to our attention which has meant that we can no longer rely on the statements of management and the Audit Committee.” EY added that it is “not prepared to do this.” related to the financial statements prepared by management.”

Super Micro Computer says it does not agree with EY’s decision, because the audit for which it hired EY last year has not yet been completed, and that it rejects the concerns that the accounting firm has expressed about whether the company demonstrates a commitment to integrity. takes seriously.

The layoff comes as shares of Super Micro Computer have decreased in recent months amid speculation about accounting practices afterward submission postponed of his annual 10-K and a report from short seller Hindenburg research alleging “accounting manipulation” and other issues.

Last month, reports appeared that the Justice Department had opened an investigation into Super Micro Computer’s accounting practices following the Hindenburg Report.

Following EY’s resignation, Hindenburg founder Nate Anderson said the company’s resignation letter was “about as strongly worded as I’ve seen,” and suggested that EY’s decision would have affected partners like Nvidia (NVDA) ask to do business with Super Micro Computer in the future.

–Aaron McDade

Eli Lilly Stock Plummets on Weak Earnings and Outlook

4 hours and 8 minutes ago

Eli Lilly (LLYShares fell more than 10% in early trading on Wednesday after the company’s third-quarter results fell well below analysts’ expectations and full-year expectations were lowered.

The pharmaceutical giant recorded $11.44 billion gain– above last year’s $9.50 billion but below the consensus estimate of $12.18 billion from analysts polled by Visible Alpha – as weight-loss drugs Mounjaro and Zepbound continue to boost Eli Lilly’s sales. However, analysts were looking for greater sales of the blockbuster drugs.

Lilly posted a profit of $970.3 million, or $1.07 per share, but still well below the $1.69 billion and $1.87 per share that analysts were looking for. Adjusted earnings per share of $1.18 were barely half of the expected $2.18.

Lilly lowered its 2024 earnings per share guidance to a range of $12.05 to $12.55, from $15.10 to $15.60, and adjusted earnings per share to $13.02 to $13.52, from $16 .10 to $16.60. These were both driven by the ongoing $2.83 billion acquisition research and development costs incurred in the third quarter. Lilly also lowered the top end of its full-year revenue to $46.0 billion from $46.6 billion.

Lilly and Danish rival Novo Nordisk (NVO) – which has its own blockbuster drugs in Ozempic and Wegovy – have billions spent on one variety of acquisitions to help boost production of their weight-loss drugs. Shares of Novo Nordisk fell about 2% early Wednesday.

Shares of Eli Lilly traded at their lowest level since early August.

–Aaron McDade

Reddit levels to watch as shares rise 20% after earnings

5 hours and 42 minutes ago

Reddit (RDDT) shares rose 20% in premarket trading Wednesday after the company reported earnings that beat estimates and offered a strong outlook as the social media platform benefits from robust digital ad spending and lucrative AI content licensing deals.

Since going public in March, Reddit’s shares have fluctuated within an ascending triangle before breaking above the pattern’s highest trendline earlier this month.

The measurement principle, which calculates the distance between the two trendlines of the ascending triangle and adds that amount to the breakout point, projects an upside target for the stock of $115. In recent premarket trading, the stock was trading around $100.

During retracements, investors should keep an eye on key support levels on Reddit’s chart around $75 and $65.

Read the full technical analysis piece here.

–Timothy Smit

Stock index futures mixed but little changed

6 hours and 14 minutes ago

Futures tied to the Dow Jones Industrial Average fell 0.2%.

Futures on the S&P 500 fell fractionally.

Nasdaq 100 futures rose less than 0.1%.