An Eli Lilly & Co. Zepbound injection pen, March 28, 2024.
My top 10 things to watch Wednesday, Oct. 30
1. Wall Street was looking at a mixed open. The Nasdaq closed at a record high on Tuesday and was steady early Wednesday. Dow stock Caterpillar weighed on the 30-stock average, which was in the red. The heavy equipment maker missed on earnings and cut guidance.
2. Bond yields remained lower despite the ADP's monthly report on hiring at U.S. companies more than doubled estimates with 233,000 jobs added in October. The government said the U.S. economy grew at a 2.8% pace in the third quarter. That was slower than expected.
3. Helping the case for tech stocks, Alphabet jumped more than 6%, the morning after the tech giant delivered a quarter of amazing growth. Google Cloud and ads on YouTube were strong. Not much on the Justice Department's antitrust litigation.
4. Club holding Advanced Micro Devices dropped 8% despite a solid quarter. Investors wanted to see faster growth in its artificial intelligence chip business. AMD raised its full-year sales projections on AI chips to exceed $5 billion. That's up $500 million from the outlook offered in July.
5. Eli Lilly shares fell roughly 12% after the drug giant missed estimates on quarterly revenue and earnings. The Club company cut guidance on disappointing sales of its weight loss drug Zepbound and diabetes treatment Mounjaro. Demand has been far outpacing supply, forcing Lilly to invest billions to increase manufacturing.
6. Club stock GE Healthcare was modestly higher after the company's morning release of better-than-expected quarterly earnings. Revenue matched. Ex-China the results were strong. Will people be willing to asterisk China? Investors were not willing to do so for Danaher.
Money Report
7. Reddit shares surged more than 20% in what might have been the strongest earnings report of Tuesday night. Surprise EPS positive and huge accelerating revenue growth. CEO Steven Huffman is hitting on all cylinders as he told me on Tuesday evening's "Mad Money."
8. Shares of Snap popped 7% on a good quarter. The Snapchat parent also announced a $500 million stock buyback program. Like Club name Meta Platforms, Snap is sticking with its push on augmented reality glasses, debuting last month the fifth generation of its Spectacles.
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9. Dow component Visa's quarter was nicely better than expected. The stock was higher. Consistent growth as always and no credit risk. There were at least eight price target boosts from Wall Street analysts.
10. Chipotle reported a mixed quarter. There were some signs of slowing but not the disaster people think. Good gains in throughput, the time it takes to make and deliver orders. It's a hallmark of former Chipotle CEO Brian Niccol who is looking for similar success leading Club name Starbucks.
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