U.S. equity indexes experienced gains as quarterly earnings poured in and investors assessed a slower-than-expected rise in the advance estimate for Q3 economic growth. The S&P 500 saw an increase of 0.2%, reaching 5,845.4 after midday on Wednesday. Similarly, the Nasdaq Composite edged up 0.1% to 18,738.9, while the Dow Jones Industrial Average rose by 0.4% to 42,410.5.
The communication services sector emerged as the primary gainer, whereas technology and healthcare stocks were the only decliners during the intraday trading. In notable corporate news, shares of Alphabet surged by 5.8% intraday, making it the leading performer on the Nasdaq after the Internet search titan announced impressive year-over-year growth in Q3 earnings and revenue. In addition to Alphabet, four other companies from the renowned Magnificent Seven group are set to report their earnings this week.
Microsoft and Meta Platforms are expected to disclose their results after market close on Wednesday, while Apple and Amazon.com will follow with their quarterly announcements on Thursday. In contrast, Super Micro Computer's shares plummeted by 32% during intraday trading, marking it as the worst performer on the Nasdaq after Ernst & Young stepped down as its registered public accounting firm. On a brighter note, Garmin's shares climbed by 23% intraday, positioning it as the top gainer on the S&P 500 following the company’s announcement of increased Q3 non-GAAP earnings and net sales, along with an upgrade in its fiscal 2024 outlook. Visa reported fiscal Q4 non-GAAP earnings and revenue that surpassed market expectations, pushing its shares up by 3.5% intraday, thereby leading the Dow. In terms of economic developments, the U.S.
gross domestic product (GDP) showed an increase of 2.8% in Q3, which was a slowdown from the 3% rise in Q2 and fell short of the 2.9% increase predicted in a Bloomberg survey. U.S. Treasury yields presented mixed results during intraday trading; the two-year yield rose by 1.8 basis points to 4.14%, while the 10-year yield dipped by 2.4 basis points to 4.25%. Additionally, the price of West Texas Intermediate crude oil jumped by 2.5%, reaching $68.89 a barrel..