Super Micro Computer plunged 31% to $33.95 after the company's auditors, Ernst & Young, resigned, citing material weakness in internal control. 

The company has still not released its financial statements for this year, and the company is reportedly under federal investigation. 

“We are resigning due to information that has recently come to our attention, which has led us to no longer be able to rely on management’s and the Audit Committee’s representations,” Ernst & Young said in their resignation letter. 

30 Oct, 2024

Advanced Micro Devices dropped 8.9% to $151.43 after the company's quarterly results and guidance fell short of investor expectations. 

Third quarter revenue increased 18% to $6.8 billion from $5.8 billion, net income advanced 158% to $771 million from $299 million, and diluted earnings per share rose to 47 cents from 18 cents a year ago. 

The company estimated a fourth quarter revenue increase of 22% from a year ago to $7.5 billion and a non-GAAP gross margin of 54%. 

30 Oct, 2024

McDonald's increased 0.7% to $299.07 after the fast food chain reported better-than-expected quarterly results. 

Consolidated revenue in the third quarter increased 3% to $6.9 billion from $6.7 billion, net income fell 3% to $2.25 billion from $2.32 billion, and earnings per share fell 1% to $3.13 from $3.17 a year ago. 

Global comparable sales declined 1.5% in the quarter, but sales in the U.S. rose 0.5%. 

However, the latest E. coli outbreak in 13 states linked to the company's Quarter Pounder burger is likely to dent sales in the current quarter. 

29 Oct, 2024

D.R. Horton plunged 9.6% to $163.05 after the homebuilder reported weaker-than-expected quarterly results. 

Revenue in the fiscal fourth quarter ending in September declined to $10.0 billion from $10.5 billion, net income fell to $1.3 billion from $1.5 billion, and diluted earnings per share dropped to $3.92 from $4.45 a year ago. 

The homebuilder offered weak annual revenue and unit home sale outlook as buyers struggle with affordability issues.

The company estimated fiscal year 2025 revenue between $36 billion and $37.5 billion, home completions between 90,000 and 92,000 units, stock repurchase of $2.4 billion, and dividend payment of $500 million. 

29 Oct, 2024

Cadence Design Systems jumped 10.5% to $279.24 after the chip design software company reported better-than-expected quarterly results. 

Revenue in the third quarter increased to $1.21 billion from $1.02 billion, net income decreased to $238.1 million from $254.3 million, and diluted earnings per share fell to 87 cents from 94 cents a year ago. 

The company reiterated its full-year 2024 revenue to range between $4.61 billion and $4.65 billion and diluted net income per share between $3.70 and $3.76. 

29 Oct, 2024

HSBC Holdings increased 4.3% to $47.12 after the UK- and Hong Kong-based bank reported rising revenue and earnings in the September quarter. 

Revenue increased 5% to $17.21 billion from $16.7 billion, and net income advanced 8% to $6.7 billion from $6.2 billion a year ago, respectively. 

The largest European bank also announced a stock repurchase plan of $3 billion. 

29 Oct, 2024

ON Semiconductor Corp. decreased 0.4% to $70.94 despite the advanced chipmaker for automobile and industrial systems reporting higher sales and earnings in its latest quarter. 

28 Oct, 2024

McDonald's Corp. decreased 2.7% to $299.0 after the company ruled out the outbreak of E. coli linked to the company's Quarter Pounders. The company said it plans to resume selling quarter pounders at impacted restaurants as early as this week. 

28 Oct, 2024

Boeing declined 1.3% to $153.08 after the embattled aviation company launched an offering to raise as much as $19 billion. 

The company is looking to sell 90 million shares and $5 billion of mandatory convertible securities. 

The commercial plane maker and defense contractor has struggled to stem cash outflow after 33,000 workers struck in September, halting production, including popular 737 Max aircraft. 

28 Oct, 2024

Deckers Outdoor Corporation jumped 10.7% to $168.28 after the maker of Ugg and Hoka reported sharply higher-than-expected fiscal second quarter earnings and revenue. 

25 Oct, 2024

DexCom declined 3.5% to $72.33 despite the company reporting higher-than-expected quarterly earnings, but slower revenue growth weighed on the stock. 

25 Oct, 2024

Tapestry Inc. increased 13.9% to $50.63, and Capri Holdings declined 47% to $22.09 after a federal judge blocked a merger between the two fashion companies. 

25 Oct, 2024

U.S. Movers: Booking Holdings, Carvana, Microsoft, Starbucks, Uber Technologies

Scott Peters
31 Oct, 2024
New York City

Wall Street indexes fell more than 1% after forward-looking announcements from big tech companies disappointed investors. 

The alternative measure of inflation, which generally understates price increases, confirmed stubborn and well-anchored inflation into the economy. 

The S&P 500 index decreased 0.8% to 5,768.24, the Nasdaq Composite fell 1.3% to 18,365.20, and the Russell 2000 index declined 0.2% to 2,233.04. 

The yield on 2-year Treasury notes edged higher to 4.20%, 10-year Treasury notes inched higher to 4.30%, and 30-year Treasury bonds inched higher to 4.50%.

Microsoft Corp. declined 4.8% to $411.89 after the software company reported strong quarterly results, but the company's revenue outlook for the current quarter fell short of investor expectations. 

Microsoft estimated revenue in the fiscal second quarter to range between $68.1 billion and $69.1 billion.

Booking Holdings increased 6.3% to $4,745.43 after the online reservation company's adjusted earnings in the latest quarter surpassed market expectations. 

Starbucks Corp. increased 2.4% to $95.94 after the coffee chain operator reported sharply lower-than-expected revenue and earnings in its latest quarter amid demand weakness in the U.S. and China. 

Global comparable same-store sales plunged 7% in the fiscal fourth quarter. 

Uber Technologies dropped 9.9% to $71.77 after the ride-hailing service provider reported strong quarterly earnings but gross bookings disappointed investors. 

Carvana Co. jumped 20.4% to $249.39 after the used car dealer reported sharply higher sales and earnings. 

The company also lifted its full-year earnings outlook, and added results are expected to surpass the high end of its previous estimate. 

S&P 500 and Nasdaq Between 1% and 2% After Big Tech Outlook Disappoints Investors

Barry Adams
31 Oct, 2024
New York City

Stock market indexes on Wall Street eased after big tech earnings fell short of market expectations. 

The S&P 500 index fell 0.8% and the Nasdaq Composite declined 1.3% following disappointing announcements from Microsoft and Meta Platforms. 

Investors also reacted to the latest quarter results from Uber Technologies, eBay, Roku, Starbucks, Carvana, and Booking Holdings. 

On the economic front, the Personal Consumption Expenditure Price Index rose by 0.2% from the previous month in September, following a 0.1% increase in the previous month, the U.S. Bureau of Economic Analysis reported Thursday.

The Core PCE index, which excludes food and energy prices, accelerated to a five-month high of 0.3% from the upwardly revised 0.2% in the previous month. 

On an annual basis, the alternative measure of inflation fell to 2.1%, the lowest since February 2021, from an upwardly revised 2.3% in the previous month. 

The annual core rate of inflation was steady at 2.7%, highlighting the stubborn and well-anchored inflation into the economy. 

Despite eleven interest rate hikes over 2022 and 2024, the Fed has failed to bring down inflation to its target rate of 2%, and prices are still rising at a faster rate as many businesses and service providers are looking to pass on higher costs to consumers. 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.8% to 5,768.24, the Nasdaq Composite fell 1.3% to 18,365.20, and the Russell 2000 index declined 0.2% to 2,233.04. 

The yield on 2-year Treasury notes edged higher to 4.20%, 10-year Treasury notes inched higher to 4.30%, and 30-year Treasury bonds inched higher to 4.50%.

WTI crude oil increased $0.69 to $69.33 a barrel, and natural gas prices edged down 7 cents to $2.77 a thermal unit.

Gold fell by $18.82 to $2,766.72 an ounce, and silver decreased by $0.47 to $33.25.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 103.94.

U.S. Stock Movers

Microsoft Corp. declined 4.8% to $411.89 after the software company reported strong quarterly results, but the company's revenue outlook for the current quarter fell short of investor expectations. 

Microsoft estimated revenue in the fiscal second quarter to range between $68.1 billion and $69.1 billion.

Booking Holdings increased 6.3% to $4,745.43 after the online reservation company's adjusted earnings in the latest quarter surpassed market expectations. 

Starbucks Corp. increased 2.4% to $95.94 after the coffee chain operator reported sharply lower-than-expected revenue and earnings in its latest quarter amid demand weakness in the U.S. and China. 

Global comparable same-store sales plunged 7% in the fiscal fourth quarter. 

Uber Technologies dropped 9.9% to $71.77 after the ride-hailing service provider reported strong quarterly earnings but gross bookings disappointed investors. 

Carvana Co. jumped 20.4% to $249.39 after the used car dealer reported sharply higher sales and earnings. 

The company also lifted its full-year earnings outlook, and added results are expected to surpass the high end of its previous estimate. 

Europe Movers: AB InBev, Airbus, BNP Paribas, Dansk Bank, Shell, Societe Generale, TotalEnergies

Inga Muller
31 Oct, 2024
Frankfurt

Benchmark indexes in Paris, London, and Frankfurt extended losses in the month. 

Investors reacted to the latest earnings from Societe Generale, BNP, Airbus, AB InBev, and TotalEnergies. 

The DAX index decreased by 0.5% to 19,161.70; the CAC-40 index fell by 0.9% to 7,360.22; and the FTSE 100 index fell by 0.8% to 8,093.66. 

The yield on 10-year German bonds edged higher to 2.40%, French bonds inched higher to 3.13%, the UK gilts edged higher to 4.41%, and Italian bonds increased to 3.65%.

Airbus SE increased 1.6% to €142.04 after the commercial aviation company reaffirmed its target to deliver 770 aircraft in the current year.

TotalEnergies SE declined 2.9% to €57.43 after the French energy company reported lower-than-expected adjusted earnings in the third quarter.

Societe Generale increased 9.3% to €25.92 after the French lender reported strong quarterly results and a broad management shakeup. 

BNP Paribas SA declined 5.5% to €61.92 after the French bank reported weaker-than-expected third quarter earnings.

Revenue increased 3.1% to 11.9 billion from €11.6 billion, and net income increased 7.8% from a year ago to €2.87 billion from €2.66 billion. 

Equities trading division revenue rose 13% to €820 million, and revenue from trading of bonds, currencies, and commodities advanced 12% to €1.2 billion. 

Corporate and institutional banking divisions reported an increase of 9% in revenue.

However, revenue from the Commercial, Personal Banking, and Services division, the largest division by revenue, decreased 2.6% from a year earlier, largely because of weakness in the automobile lease segment. 

Last month, the company agreed to acquire the German private banking operation of HSBC as the company looked for ways to strengthen its wealth management unit in Germany and increase its asset under management to €40 billion. 

The company retained its full-year net income target of €11.2 billion. 

Anheuser-Busch InBev SA declined 4.9% to €55.52 after the brewery reported a decline in beer sales volume due to weakness in China and Argentina. 

Danske Bank AS increased 3.3% to DKK.202.70 after the Danish bank raised its annual earnings outlook. 

Shell PLC increased 1.5% to 2,526.50 pence after energy explorer launched a new stock repurchase plan of $3.5 billion to be completed by January 30, 2025.  

Revenue in the third quarter declined to $71.1 billion from $73.3 billion, net income declined to $4.2 billion from $7.2 billion, and diluted earnings per share fell to 68 cents from $1.05 a year earlier. 

The company also announced an interim cash dividend of 34.4 cents per share payable on December 19 to shareholders on record on November 15.