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Stocks – Techs Lead S&P to Small Gain, 3M Weighs on Dow

Published 10/24/2019, 03:52 PM
Updated 10/24/2019, 04:49 PM
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Investing.com - Technology stocks drove the S&P 500 and Nasdaq higher Thursday thanks to big earnings beats from key stocks, including Microsoft (NASDAQ:MSFT) and Tesla (NASDAQ:TSLA).

The S&P 500 rose 0.19%. The Nasdaq Composite index added 0.81% and the Nasdaq 100 index rose nearly 1%. The Dow Jones industrials ended down 0.11% after falling as many as 120 points early in the session.

Microsoft, PayPal Holdings (NASDAQ:PYPL), Tesla and Amazon.com (NASDAQ:AMZN) were responsible for more than 40 points of the Nasdaq 100's 70-point gain. The first three reported either late Wednesday or Thursday.

Amazon shares, however, fell nearly 8% after hours when third-quarter earnings per share came in a $4.23. The consensus estimate from analysts tracked by Investing.com was $4.59. Worse, the EPS was the lower than a year ago and first profit decline in two years. The online retail giant had warned it was making heavy investments in being to deliver purchases to Amazon Prime customers in a little as a day. In addition, its guidance for fourth-quarter sales were lower than expected.

Still, revenue was up 23.7% to $69.98 billion and ahead of the Wall Street estimate of $68.8 billion.

Intel (NASDAQ:INTC) shares, however, jumped 8% after third-quarter earnings of $1.42 beat the estimate of $1.23.

Microsoft also added nearly 18 points to the Dow, which was held back primarily by a weak earnings report from 3M (NYSE:MMM).

But Twitter (NYSE:TWTR) shares dropped nearly 21% as earnings badly missed Wall Street estimates.

It was a busy day for markets, which experienced the heaviest day of third-quarter earnings reports.

In addition, Vice President Mike Pence, in a speech today, criticized the National Basketball Association for failing to back protesters in Hong Kong. Worries that the remarks, which were a defense of the protestors, might affect the ongoing U.S.-China trade talks faded as the day went on.

Economic data, particularly durable goods orders and new home sales, were a little lighter than expected.

Nonetheless, the market tone was better that what the numbers said. No fewer than 162 stocks hit 52-week highs, including Apple (NASDAQ:AAPL), Applied Materials (NASDAQ:AMAT), JPMorgan Chase (NYSE:JPM) and recreational vehicle maker Winnebago (NYSE:WGO).

Oil prices moved higher, as did gold. Interest rates were modestly higher.

Orthodontics company Align Technology (NASDAQ:ALGN), chip company Lam Research (NASDAQ:LRCX), Auto parts retailer O’Reilly Automotive (NASDAQ:ORLY) and chip-equipment maker Applied Materials (NASDAQ:AMAT) were among the top S&P 500 performers on the day.

Twitter (NYSE:TWTR), marketing company Alliance Data Systems (NYSE:ADS), TechnipFMC (NYSE:FTI) and drug maker Baxter International (NYSE:BAX) were among the weakest S&P performers on the day.

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