Market Recap: Nasdaq Hits Record High Despite Mixed Results

ICARO Media Group
News
29/10/2024 21h06

**Nasdaq Reaches Record High Amid Mixed Market Results**

Stocks concluded Tuesday's trading session with varied outcomes, as the Nasdaq surged to a new all-time high while the Dow Jones Industrial Average and small-cap stocks declined. The Dow fell by 0.4%, closing near its session lows, whereas the Nasdaq composite gained 0.8%. The S&P 500 saw a modest increase of 0.2%, despite a late pullback.

Contrary to the Nasdaq's upward trend, the small-cap Russell 2000 dropped 0.3%, giving back some of its 1.6% gain from Monday. The Innovator IBD 50 ETF (FFTY) added 0.4%, indicating a slight improvement. However, on the Nasdaq exchange, falling stocks outnumbered rising issues by a 9-to-7 ratio. The trend was more pronounced on the New York Stock Exchange, where losers outpaced gainers by about 12-to-5.

In corporate news, Alphabet (GOOGL) saw its stock climb roughly 4% in after-hours trading following a third-quarter earnings report that exceeded expectations. The stock had already risen nearly 1% during the regular trading session.

Despite the mixed day, the 10-year Treasury yield held steady at 4.27%. Crude oil experienced a slight decline of around 0.3%, closing at $67.14 per barrel on the Nymex.

Warren Buffett-backed Nu Holdings (NU) continued to perform well, gaining more than 1% and remaining within a buy zone up to 15.92 from a flat-base buy point of 15.16. The company's shares have surged 88% this year, earning it the designation of IBD Stock of the Day.

Conversely, Stanley Black & Decker (SWK) plummeted over 8% in heavy trading after missing third-quarter sales estimates. The tool maker's steep drop below the 50-day line prompted a sell signal, although the shares found some support around the 200-day line.

In other significant movements, Trump Media & Technology (DJT) jumped nearly 14% after experiencing wild fluctuations and temporary trading halts earlier in the day. This followed Monday’s 21.6% rise and Friday’s 11.4% increase. The stock is largely influenced by former President Donald Trump, who owns 57% of the company.

Tech giants also saw positive movements, with Alphabet (GOOGL) rising 1.9% ahead of its earnings report and Microsoft (MSFT) advancing 1.3% with its own report due Wednesday. Amazon.com (AMZN) similarly increased 1.4%, with its earnings report expected on Halloween.

Among other notable stock actions, Commvault (CVLT) surged more than 20% after reporting better-than-expected fiscal second-quarter results and raising its future sales guidance. Incyte (INCY) rallied 11.7% following a strong sales report and boosted full-year revenue guidance.

Not all was rosy, however, as Harmonic (HLIT) fell over 24% despite positive third-quarter results, due to lower-than-expected full-year guidance. TransMedics Group (TMDX) fared even worse, plunging nearly 30% after missing Q3 profit and revenue estimates and issuing a disappointing full-year outlook.

Footwear stocks showed varied results, with VF Corp (VFC) rocketing more than 23% after exceeding fiscal second-quarter expectations, whereas Crocs (CROX) dropped over 17% despite positive Q3 results but lowered full-year earnings guidance.

In the payment sector, PayPal Holdings (PYPL) dipped around 6.6% after missing third-quarter sales estimates. Meanwhile, major homebuilder D.R. Horton (DHI) plummeted more than 12%, dragging rival stocks PulteGroup (PHM) and M/I Homes (MHO) down by over 5% and 6%, respectively.

The market's mixed performance reflects a day where individual stock movements were largely driven by earnings reports and future guidance, demonstrating the continued volatility and the importance of a company's projections on investor confidence.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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