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Markets Rally as Tech Giants Soar on Strong Earnings, Intel’s Forecast Brightens Outlook

Markets showed positive momentum during midday trading, with technology stocks leading the charge following Amazon’s strong earnings report. The S&P 500 advanced 0.44%, while the Nasdaq Composite saw gains of 0.73%. The Dow Jones Industrial Average moved up 0.64%, and the Russell 2000 added 0.42%.

Among the day’s notable performers, Waters Corporation emerged as the top gainer in the S&P 500, surging 16.9%, followed by Charter Communications with a 12.7% increase. Lululemon Athletica and Intel also posted significant gains of 7.9% and 6.9% respectively, while Cardinal Health rounded out the top five with a 6.6% rise.

Conversely, Super Micro Computer experienced the steepest decline, dropping 9.7%. Other significant declines included AES falling 8.9%, while Erie Indemnity and Amcor both shed 8.1%. Entergy completed the list of major decliners with a 5.6% decrease.

Intel’s shares jumped 6% after reporting better-than-expected financial results. The semiconductor manufacturer posted adjusted earnings of 17 cents per share, significantly outperforming
expectations of a 2-cent loss. Revenue reached $13.28 billion, exceeding analyst projections of $13.02 billion despite being down 6% year-over-year. Looking ahead, Intel provided optimistic guidance, forecasting adjusted earnings of 12 cents per share for the fourth quarter, with revenue expected between $13.3 billion and $14.3 billion.

Apple shares declined 1.5% despite exceeding earnings expectations. The technology giant reported adjusted earnings of $1.64 per share on revenue of $94.93 billion, both surpassing analyst estimates. iPhone revenue grew 6% year-over-year to $46.22 billion, though other segments fell short of expectations. The company anticipates low-to-mid-single-digit percentage sales growth for the December quarter.

Amazon’s stock rose 6% following impressive quarterly results, with earnings of $1.43 per share exceeding the expected $1.14. Revenue reached $158.88 billion, surpassing forecasts of $157.2 billion, driven by strong performance in cloud computing and advertising. Amazon Web Services generated $27.4 billion in revenue, showing 19% year-over-year growth, though slightly missing analyst expectations of $27.5 billion.

CEO Andy Jassy announced ambitious capital expenditure plans, with $75 billion allocated for 2024 and potentially more for 2025, largely focused on generative AI initiatives, which he described as a “once-in-a-lifetime type of opportunity.”

The positive market sentiment was further supported by other tech giants, with Microsoft gaining 1.42% and Nvidia advancing 1.76%. However, Tesla experienced a slight decline of 1.05%.

Apple’s CEO Tim Cook highlighted strong customer response to their latest iOS update, noting that iOS 18.1 adoption rates were double compared to the previous year’s iOS 17.1 release. The company’s services division continues to show momentum, with Apple Intelligence features rolling out as part of the recent update.

Intel’s CEO Pat Gelsinger emphasized the company’s ongoing
transformation efforts, including significant workforce reductions and real estate optimization, with plans to complete these initiatives by late 2025. The company also revealed plans to restructure its foundry business as a separate subsidiary.