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Apple Drops as Big Tech Stocks Rise 11/03 09:39
The U.S. stock market is drifting in mixed trading on Tuesday, with Apple
falling but other Big Tech stocks picking up the slack following their own big
swings.
NEW YORK (AP) -- The U.S. stock market is drifting in mixed trading on
Tuesday, with Apple falling but other Big Tech stocks picking up the slack
following their own big swings.
The S&P 500 added 0.3%, even though more stocks fell within the index than
rose. The Dow Jones Industrial Average was down 286 points, or 0.6%, as of
10:15 a.m. Eastern time, and the Nasdaq composite was 0.7% higher.
The stock market has been shaky recently as technology and
artificial-intelligence stocks have swung on worries their prices shot too high
in the frenzy around AI. Several of the most influential AI-related stocks held
firmer Tuesday, which supported the market, after flipping from gains in the
morning to losses in the afternoon a day earlier.
Nvidia rose 2.9% and was the strongest force pushing upward on the S&P 500
Tuesday. Close behind were gains of 3.1% for Broadcom and 4.6% for Advanced
Micro Devices.
Apple was long seen on Wall Street as a Big Tech company that's less
dependent on AI. But it's still feeling the effects of the AI boom.
Memory chips for computers have become more expensive because of the demand
created by the rush to build AI data centers. Those additional expenses are
hitting Apple, which said it expects to make less profit from each $1 of its
revenue during the final three months of this year.
That helped send Apple's stock down 1.8%, even though the seller of iPhones
and Mac computers reported stronger profit and revenue for the latest quarter
than analysts expected.
Palantir Technologies fell 4.6% even though it likewise reported a better
profit than expected. The software company said it made more money working with
U.S. companies than from the U.S. government for the first time, as U.S.
commercial revenue soared 148% from a year earlier.
Tuesday's midterm elections may also be keeping financial markets unsteady,
but history suggests they may not matter much for the broad market. Going back
to 1970, the S&P 500 has had a positive return in the six months following a
midterm election every time, according to Brock Weimer, an analyst at Edward
Jones.
Some on Wall Street worry that a Democratic sweep of Congress this time
around could lead to more regulations and restrictions on AI development. But
Donald Trump would still be president and have the power to veto. And Wall
Street generally prefers split control of Washington, which it sees as offering
less risk of transformative policies that could reshape the economy.
On the winning side of Wall Street Tuesday were stocks of several companies
that reported stronger profits for the summer than analysts expected.
Celanese climbed 1.3%, and DuPont added 4.9%.
Revvity jumped 11.2% for one of the biggest gains in the S&P 500 after the
life sciences company topped analysts' expectations and CEO Prahlad Singh said
end market conditions are continuing to improve.
Expectations are high for all kinds of companies to continue to deliver big
gains in profits as the U.S. economy keeps chugging along, even with high
inflation and elevated interest rates. That helped send the S&P 500 to a record
high last month.
The latest encouraging report on the U.S. job market said that employers
were advertising more job openings at the end of September than economists
expected. That helped push the yield on the 10-year Treasury up to 4.96% from
4.91% late Monday.
In the oil market, prices continued to swing. Brent climbed above $107 per
barrel in the morning before briefly dropping below $101 on continued
uncertainty about what will happen in the war with Iran. It was most recently
down 1.3% at $103.37.
In stock markets abroad, indexes were mixed across Europe and Asia. South
Korea's Kospi dropped 3.6% for one of the world's sharpest moves following
losses for its two tech giants, Samsung Electronics and SK Hynix.
Stocks rose 0.3% in Australia after the country's central bank raised its
benchmark interest rate for the fifth time this year.
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