U.S. Stocks Moving Sharply Higher Despite Steep Drop By AmazonNovember 4, 2022
With traders shrugging off disappointing guidance from Amazon (AMZN), stocks have moved sharply higher during trading on Friday. The major averages have all shown strong moves to the upside following the mixed performance seen in the previous session.
In recent trading, the major averages have reached new highs for the session. The Dow is up 565.08 points or 1.8 percent at 32,598.36, the Nasdaq is up 172.48 points or 1.6 percent at 10,965.16 and the S&P 500 is up 55.74 points or 1.5 percent at 3,863.04.
The rally on Wall Street comes despite a steep drop by shares of Amazon, with the online retail giant plunging by 8.9 percent.
Amazon has come under pressure after reporting mixed third quarter results and providing disappointing fourth quarter revenue guidance.
Traders have reacted more positively to other earnings news, with semiconductor giant Intel (INTC) soaring despite lowering its full-year guidance. Intel reported third quarter results that beat analyst estimates.
Shares of Apple (AAPL) have also moved sharply higher after the tech giant reported better than expected fiscal fourth quarter earnings but forecast slower revenue growth in the current quarter.
Energy giant Exxon Mobil (XOM) has also moved to the upside after reporting record profits in the third quarter due to higher energy prices.
Buying interest may also have been generated in reaction to a Commerce Department report showing core consumer price growth accelerated by slightly less than expected in September.
The Commerce Department said the annual rate of core consumer price growth accelerated to 5.1 percent in September from 4.9 percent in August.
Economists had expected the annual rate of growth in core consumer prices, which exclude food and energy prices, to accelerate to 5.2 percent.
Telecom stocks are turning in some of the market’s best performances in morning trading, with the NYSE Arca North American Telecom Index surging by 3.2 percent to its best intraday level in a month.
Wireless network operator T-Mobile (TMUS) is posting a standout gain after reporting strong third quarter subscriber growth and raising its full-year guidance.
Substantial strength has also emerged among semiconductor stocks, as reflected by the 2.6 percent jump by the Philadelphia Semiconductor Index. Intel has helped lead the sector.
Computer hardware stocks are also seeing considerable strength on the day, driving the NYSE Arca Computer Hardware Index up by 2.2 percent.
Interest rate sensitive utilities and commercial real estate stocks have also shown strong moves to the upside, while steel, oil service and gold stocks have moved sharply lower.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan’s Nikkei 225 Index slid by 0.9 percent, while China’s Shanghai Composite Index tumbled by 2.3 percent.
Meanwhile, the major European markets have turned mixed on the day. While the U.K.’s FTSE 100 Index is down by 0.4 percent, the German DAX Index is up by 0.3 percent and the French CAC 40 Index is up by 0.4 percent.
In the bond market, treasuries are giving back ground after moving sharply higher over the past few sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 3.2 basis points at 3.969 percent.
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