Big Tech sends stocks lower
Stocks were dragged down by yesterday’s Microsoft and Meta earnings as investors rotated out of Big Tech names.
Megacap tech dragged down the S&P 500 and Nasdaq 100 as every BATMMAAN stock was in the red except for Alphabet and Apple. The AI trade was off as investors expressed concerns about Meta’s big spending plans. Though the Russell 2000 also fell, it fared slightly better than the benchmark S&P 500 index and tech-heavy Nasdaq 100.
Stocks that moved higher:
Google had a banner day after it posted fiscal third-quarter earnings that surpassed Wall Street’s expectations yesterday evening, helped by big growth in its Google Cloud business.
Cloud software giant ServiceNow rose following better-than-expected earnings and the announcement of plans for a 5-for-1 stock split in yesterday’s earnings call.
Moderna shot higher after STAT reported that the company has flirted with the idea of tying up with a larger drugmaker.
Eli Lilly jumped after it reported earnings and revenue results that beat Wall Street expectations, driven by better-than-expected sales of its blockbuster diabetes shot Mounjaro.
Critical Metals jumped as China delayed new rare earth export restrictions while leaving past curbs intact.
Stocks that moved lower:
Meta plunged after posting record revenue in yesterday’s earning call, but missed on earnings thanks to a one-time tax charge. The earnings prompted a number of analysts to lower their price targets or downgrade the stock.
Nvidia dropped after President Trump said he didn’t discuss Blackwell chips in his meeting with Chinese President Xi Jinping.
Chipotle sank after the company cut its annual sales forecast for the third time this year, warning that spending weakness could persist through 2026.
Shares of eBay fell after the company gave a lower-than-expected profit forecast for the important holiday shopping season.
Microsoft beat expectations yesterday, but the stock dropped. Microsoft revealed on its earnings call that the company’s earnings net income took a $3.1 billion hit due to its investment in OpenAI.
Used car seller Carvana fell after posting worse-than-expected profit after the bell yesterday despite record revenue and vehicle sales.
Roblox dropped after warning that plans to prioritize safety may weigh on growth next year, overshadowing its Q3 sales beat.
Boeing slumped after the Trump-Xi meeting produced no purchase announcements. Analyst Scott Deuschle from Deutsche Bank lowered the stock to “hold” from “buy.”
Shares of luxury EV maker Lucid dipped lower as traders piled into bearish options bets.
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