Tech-Heavy NASDAQ Plummets, then Rebounds in Volatile Trading

optionpub | October 26, 2022

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Stocks were mixed Wednesday amid solid gains in the DJIA, S&P 500 and Russell 2000 indices. The NASDAQ plummeted over 250 points on the opening bell after disappointing earnings from 2 of its key components, Alphabet (GOOG) and Microsoft (MSFT).  Alphabet missed on both revenue and EPS targets, sending shares plummeting after the bell. Microsoft beat on revenue and EPS targets, but shares fell on lowered cloud revenue and lackluster quarterly guidance.

Still, the NASDAQ showed signs of resilience. After dropping  250 points on the opening bell, it managed to rebound, erasing most of its losses.

In economic news, New Home Sales (Sep) were up 603K versus 585K expected which is regarded as a bullish report.

Crude oil prices rose slightly ($88.20) on strong exports and a weakening U.S. Dollar.

Cryptos are tracking with the broader markets. Bitcoin is 20,793.50 (+3.52%) and Ethereum is 1,553.10 (+6.35%) intraday.

Wednesday earnings at the Opening Bell included:

  • Boeing (BA) -6.18 EPS vs. 0.18 expected; 16B revenue vs. 18.19 forecasted. Big miss
  • Bristol-Myers Squibb (BMY)99 EPS vs. 1.82 expected; 11.22B revenue vs. 11.15 forecasted
  • ADP (ADP)86 EPS vs. 1.8 expected; 4.2B revenue vs. 4.15B forecasted
  • Norfolk Southern (NSC)1 EPS vs. 3.61 expected; 3.34B revenue vs. 3.25 forecasted
  • Waste Management (WM)56 EPS vs. 1.51 expected; 5.08B revenue vs. 5.06B forecasted
  • Thermo Fisher Scientific (TMO)08 EPS vs. 4.81 expected; 10.68B revenue vs. 9.92B forecasted

Looking ahead this week, the key driver of economic news will be the GDP (QoQ) report, which will be released Thursday morning at 8:30am ET. Analysts are projecting 2.4% GDP. Anything above that number is normally considered bullish.

Stay tuned. It’s going to be a busy week.

Wednesday Closing Bell, October 26 (4 PM ET)

DJIA 31,839.84  +3.10  (+0.01%)
S&P 500 3,830.60  -28.51  (-0.74%)
NASDAQ 10,970.99  -228.12  (-2.04%)
Russell 2000 1810.63  +14.27  (+0.79%)
Crude Oil 88.11 +2.80  (+3.29%)
US Dollar Index 109.523  -1.320  (-1.19%)

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