Tuesday started on a bearish note but gained slight momentum as news emerged that tensions in the U.S.-China trade dispute were easing.
- The S&P 500 gained midday momentum with earnings reports from major banks, only to slip 0.2% at the close.
- The tech-heavy Nasdaq Composite was down 0.8%, with stocks of major tech companies, including Nvidia, Tesla, Amazon, and Microsoft, slipping.
- The Dow Jones Industrial Average regained composure, up 0.4% at the close.
- The Russell 2000 reached a record high on Tuesday, closing up 1.3%.
Wells Fargo, Goldman Sachs, JPMorgan Chase, Citigroup and BlackRock kicked off the earnings season on Tuesday, exceeding expectations.
Tomorrow, we look forward to the earnings reports from Bank of America and Morgan Stanley.
Amidst positive earnings reports and gains, Gold continues its rally, up 0.7%, registering a new record. Another precious metal, Silver, also recorded a high before slipping 0.7% at the close.
Wells Fargo topped the S&P 500 charts, with its stock up 7% after the earnings announcement. Meanwhile, Goldman Sachs, despite a strong earnings report, saw its stock slip 2% at the close, although it gained after hours.
JPMorgan’s stock also fell 1.9%, while Palantir’s stock gained 1.4% amidst bullish analyst ratings.
Here are the most active stocks today
Five S&P 500 stocks making big moves today are:
- Wells Fargo & Co: +7.1%
- Builders FirstSource Inc : +6.1%
- Generac Holdings: +5.6%
- Mohawk Industries : +5.4%
- Walmart Inc : +4.9%
The worst-performing five S&P 500 stocks today are:
- Arista Networks : -5.9%
- Western Digital Corp : -4.8%
- NVIDIA Corp : -4.4%
- Coinbase Global Inc : -4.3%
- Intel Corp : -4.2%
Stocks also worth noting include:
- Beyond Meat : -24.2%
- Micron : -2.9%
- Alibaba ADR: -2.4%
- Plug Power: +3.7%
- MP Materials: +3.8%.
Major banks lead with robust earnings
Wells Fargo’s stock rocketed 7% after its earnings announcement, noting that the company is “positioned for continued higher growth and returns.”
It expects 2025 net interest income to be in line with 2024 net interest income of $47.7 billion. Wells Fargo is pleased with the Q3 results, attributing them to the benefits of previous investments and factors such as improved credit performance and higher growth and returns.
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Goldman Sachs, which reported a net revenue of $15.18 billion and net earnings of $4.10 billion in its Q3 report, saw its stock slip 2% at the close.
“This quarter’s results reflect the strength of our client franchise and focus on executing our strategic priorities in an improved market environment,” shared David Solomon, Chairman and CEO of Goldman Sachs.
Solomon also emphasised the importance of risk management and efficiency, with a focus on deploying AI technologies to enhance execution.
Related: JPMorgan to invest $1.5 trillion in U.S. national security
JPMorgan’s stock slipped 1.9% today, but is up 26% year-to-date.
“The Firm reported strong results in the third quarter, generating net income of $14.4 billion,” said CEO Jamie Dimon.
Adding that each line of business performed well, and they continue to “benefit from higher client activity and demand for financing in Markets, with record third-quarter Markets revenue of nearly $9 billion.”
While commenting on a resilient economy despite softening job growth, Dimon also flagged risks of tariffs and trade uncertainty, sticky inflation and complex geopolitical conditions.
Palantir extends rally on AI expansion
Palantir’s stock, up 2.5% on Tuesday, has seen a 300% increase over the year.
Piper Sandler cited tremendous visibility on future revenue for Palantir and raised its price target to $201 from $182, keeping an Overweight rating.
Analysts said that the $1 trillion US spending market and the company’s accelerating triple-digit growth have positioned Palantir beneficially. Sandler also noted that it has not yet reached peak growth, and therefore, the firm does not see a reason to halt its current momentum, as reported by TheFly.
Related: Palantir rival quietly builds a big business
Last week, OneMetNet Corporation selected Palantir Technologies to power its healthcare data analytics operations. The move reinforces Palantir’s expansion into the healthcare sector.
The company statement notes “access to healthcare data remains a key barrier to unlocking the % $868 billion market opportunity in AI-driven healthcare by 2030.”
Adding to it,
“Palantir’s software will be used to advance OneMedNet’s mission to bring the most current data to life sciences organization, decreasing costs and time to market for novel healthcare solutions,” opening a whole new world of healthcare and AI-driven opportunity.
