In midday trading on Wednesday, US equity indexes were showing mixed results as quarterly earnings reports were released and crude oil futures exhibited further declines. The Nasdaq Composite experienced a slight dip of less than 0.1%, settling at 18,305.2. Meanwhile, the S&P 500 increased by 0.1% to reach 5,822.1, and the Dow Jones Industrial Average saw a climb of 0.4%, closing at 42,924.5.
Interestingly, sectors such as communication services, energy, and technology led the declines during intraday trading. A significant drop was observed in shares of ASML, a Netherlands-based company recognized as a bellwether in the chip production equipment sector. The firm's stock fell by 5.7% during intraday trading, marking the steepest decline on the S&P 500.
This downturn is a continuation from Tuesday's performance when ASML's fiscal Q3 results were inadvertently published a day early, revealing a full-year 2025 outlook that fell short of analyst estimates. The negative guidance from ASML has remained detrimental to the overall technology sector, continuing to exert pressure on its peers as evidenced on Wednesday afternoon. On a more positive note, United Airlines ($UAL) reported adjusted Q3 earnings late Tuesday that exceeded market expectations, largely driven by an increase in sales year-over-year.
Additionally, the airline announced a robust share repurchase program valued at up to $1.5 billion, which led to a significant jump in its stock price, soaring past 11% intraday, making it the top gainer on the S&P 500. Morgan Stanley ($MS) also reported an impressive performance, with its shares rising 7.5% intraday, placing it among the leading gainers on the S&P 500 list.
This uptick followed the company's announcement of higher Q3 earnings and net revenue figures. In commodities, West Texas Intermediate crude oil prices saw a minor retreat, with a decrease of 0.14%, settling at $70.48 a barrel. In terms of geopolitical events, Israel’s strategy regarding its response to the recent Iranian attack has been prepared, as reported by CNN, which cited informed sources.
Israeli officials, including Prime Minister Benjamin Netanyahu, have communicated to US counterparts that any counterstrike would focus on military targets only, explicitly avoiding oil or nuclear installations. Shifting to economic indicators, the New York Federal Reserve reported that its services index fell to a concerning minus 2.2 in October, down from 0.5 in September.
This index is one of the initial reports reflecting the performance of the services sector this month and indicates a contraction within this area of the economy. Moreover, in recent economic data, US import prices dropped by 0.4% in September, contrasting with the anticipated 0.3% decrease as per a Bloomberg-compiled survey, following a 0.2% reduction in August.
Likewise, export prices showed a decline of 0.7% in September, markedly worse than the expected 0.4% drop and a 0.9% fall seen in August. Almost all US Treasury yields have experienced decreases during intraday trading, with the 10-year yield down by 4.1 points to 3.99%, while the two-year yield fell by 3.3 basis points to 3.92%.
The financial markets are grappling with mixed signals from earnings and economic reports, leaving investors watching closely for future developments..