U.S. stocks rebounded on Wednesday as jitters over inflated tech stock valuations abated and upbeat earnings and better-than-expected economic data fueled investors' risk appetite.
Market Snapshot
The Dow Jones Industrial Average rose 225.76 points, or 0.48%, to 47,311.00, the S&P 500 gained 24.74 points, or 0.37%, at 6,796.29 and the Nasdaq Composite climbed 151.16 points, or 0.65%, to 23,499.80.
Market Movers
Snap Inc — The social media company surged 26% after it unveiled a $500 million buyback program and issued strong fourth-quarter revenue guidance. On top of that, Snap said Perplexity AI will pay it $400 million to integrate the AI startup’s search capabilities into Snapchat.
Arm Holdings — Chip designer Arm Holdings’ stock rose nearly 3% after beating expectations on the top and bottom lines. Arm earned 39 cents per share, excluding items, on revenue of $1.14 billion. Analysts surveyed by LSEG had expected Arm to earn 33 cents per share on revenue of $1.06 billion. The company’s third-quarter forecast also outpaced estimates.
Figma — AI software company Figma saw its shares rise nearly 6% after it beat third-quarter revenue estimates and raised its forecast for the year. Figma reported revenue of $274 million, topping the $265 million estimate, per LSEG. The firm now expects revenue of $1.04 billion and $1.05 billion in fiscal 2025, up from its earlier forecast of $1.02 billion to $1.03 billion.
Lyft — The ride hailing stock climbed nearly 3% following an earnings beat. Lyft earned 11 cents per share. Analysts expected a profit of 8 cents per share, per LSEG.
e.l.f. Beauty -- The beauty brand’s stock plunged more than 22% after reporting mixed fiscal second-quarter results. The company earned 68 cents per share, excluding items, topping the LSEG estimate of 57 cents a share. However, the company’s revenue of $344 million, missed Wall Street’s expectations of $366 million. E.l.f. Beauty’s annual sales forecast was also disappointing.
Dutch Bros — Shares of the coffee chain rose more than 4% after its third-quarter earnings and revenue topped Wall Street’s expectations. Dutch Bros posted adjusted earnings of 19 cents per share on revenue of $423.6 million, above the 17 cents per share and $413.6 million that analysts polled by FactSet had penciled in. The company also raised its full-year guidance.
Applovin — The software stock popped more than 6% on the heels of its better-than-expected quarterly results. For the third quarter, Applovin posted adjusted EBITDA of $1.16 billion, while analysts had expected $1.09 billion, according to FactSet. Additionally, the company reported revenue of $1.41 billion, beating the consensus estimate of $1.34 billion. Its fourth-quarter outlook was also upbeat.
Devon Energy — Shares ticked up more than 1% following the company’s earnings and revenue beat. Devon Energy reported $1.04 in adjusted earnings per share and $4.33 billion in revenue. That’s better than the 93 cents per share and $4.14 billion in revenue that analysts had estimated, per FactSet.
Robinhood — Shares slipped 2% as investors were underwhelmed by the trading platform’s stronger-than-expected financial results for the third quarter. The company reported third-quarter earnings of 61 cents per share on revenue of $1.27 billion compared with analysts’ average earnings forecast of 53 cents per share on revenue of $1.19 billion, per LSEG data. Robinhood’s stock has jumped more than 470% over the past year.
Qualcomm — Shares of the chipmaker fell about 2% after reporting better-than-expected earnings and revenue for the fiscal fourth quarter. Qualcomm earned $3.00 per share on an adjusted basis, topping the $2.88 per share estimate from LSEG. Revenue of $11.27 billion, compared with a consensus estimate of $10.79 billion. For the fiscal first quarter, Qualcomm expects revenue of $11.8 billion to $12.6 billion, or $12.2 billion at the middle of the range, also topping estimates. Adjusted EPS will be $3.30 to $3.50, the company said, while analysts expected earnings of $3.31 per share.
Fortinet— The stock fell 11% after the cybersecurity firm reported better-than-expected financial results for the third quarter but lowered its full-year guidance. Fortinet clocked 74 cents per share excluding items on revenue of $1.72 billion versus analysts’ estimates of earnings of 63 cents per share on $1.70 billion revenue, per LSEG data. However, the company adjusted its revenue guidance through the end of this year to between $6.72 billion and $6.78 billion, marking a slight decrease from its prior guidance of $6.68 billion to $6.83 billion.
HubSpot — The stock slumped 12%, despite the customer platform reporting strong top and bottom-line figures for the third quarter. The company posted earnings of $2.66 per share excluding items on revenue of $810 million versus the Street’s average earnings estimate of $2.58 per share on revenue of $787 million, LSEG data shows.
DoorDash, Inc. — Shares plunged 15% after the delivery app reported mixed results for the third quarter. The company posted earnings of 55 cents per share, falling below Wall Street’s estimate of 69 cents per share, LSEG data shows. However, DoorDash’s revenue came in at $3.45 billion, topping analysts’ expectations of $3.36 billion.
Duolingo — Shares of the language learning platform cratered 22% even as it topped third-quarter revenue forecasts and raised its sales outlook. Revenue of $271.7 million in the third quarter, bested estimates of $260.3 million. The company now expects to ring up $1.028 billion to $1.032 billion in revenue this year. However, investors were concerned that the company’s fourth-quarter bookings estimate was below expectations.
Advanced Micro Devices rose 2.3% after falling earlier in the session. The chip maker reported better-than-expected earnings and revenue for the third quarter. Data-center revenue in the period rose 22% to $4.3 billion. AMD said it expects fourth-quarter revenue of about $9.6 billion, plus or minus $300 million, versus analysts' expectations of $9.2 billion.
Chip-making rival Nvidia declined 1.8% while Intel rose 3.7%. Qualcomm, which was scheduled to report fiscal fourth-quarter earnings after the closing bell, gained 4%.
Arista Networks declined 8.6%. The cloud services provider posted better-than-expected third-quarter adjusted earnings as revenue rose 27% to $2.31 billion and beat forecasts, but sales guidance for the fourth quarter disappointed. Arista said it expects revenue in the period of $2.3 billion to $2.4 billion compared with projections of $2.33 billion.
SUPER MICRO COMPUTER INC tumbled 11% after the server maker reported weaker-than-expected fiscal first-quarter earnings and revenue and issued mixed guidance for the current quarter.
Pinterest plummeted 22% after the social-media platform reported weak third-quarter earnings. Fourth-quarter revenue guidance also disappointed, while the company's outlook for adjusted Ebitda, or earnings before interest, taxes, depreciation, and amortization, was in line with Wall Street expectations.
Axon Enterprise, Inc. dropped 9.4% after the Taser maker swung to a loss in the third quarter, and adjusted earnings in the period of $1.17 a share missed analysts' expectations of $1.52. The company also said it was acquiring Carbyne, an emergency communications and response platform. The deal is valued at $625 million.
Novo Nordisk lowered its potential growth outlook as it faces competitive pressure from copycat versions of its weight-loss drugs Ozempic and Wegovy. The Danish pharmaceutical company now expects operating profit growth of between 4% and 7% at constant exchange rates this year, from a previous expected range of 4% to 10%. Sales growth was estimated at between 8% and 11% from a prior range of 8% to 14%. "The narrowing of the guidance ranges reflects lowered growth expectations for Novo Nordisk's GLP-1 treatments within diabetes and obesity," the company said. U.S.-listed shares of Novo Nordisk rose 0.4%.
Humana posted third-quarter adjusted earnings of $3.24 a share, better than analysts' estimates of $2.93. Humana's medical-loss ratio, which measures the share of premiums paid out to cover medical expenses, was in line with expectations at 91.1%. The stock declined 6%, however, after Humana lowered its full-year guidance.
Rivian Automotive gained 23% after the electric-vehicle company reported a wider-than-expected third-quarter loss but gross profit of $24 million versus analysts' estimates that called for a loss of $64 million.
McDonald's rose 2.2% after third-quarter adjusted earnings slightly missed analysts' estimates. Same-store sales increased 2.4% in the U.S. during the quarter, while global same-store sales rose 3.6%. Sales for company-owned and operated restaurants, as opposed to franchises, were down 3%.
Zimmer Biomet was the worst performer in the S&P 500, with the stock falling 15%. The maker of hip and knee replacements reported weaker-than-expected quarterly sales.
Trex dropped 31% after the decking and railing company reported weaker-than-expected quarterly sales and earnings and slashed its 2025 and 2026 guidance.
Kratos Defense & Security Solutions fell 14% after the drone maker issued fourth-quarter sales guidance that missed analysts' estimates.
Lumentum Holdings gained 24% after the provider of optical and photonic products for the cloud sector posted fiscal first-quarter earnings and revenue that beat Wall Street forecasts and issued strong revenue guidance for the second quarter.
Market News
Beijing lifts some tariffs on US farm goods but soybeans stay costly
China will suspend retaliatory tariffs on U.S. imports, including duties on farm goods, after last week's meeting of the two countries' leaders, Beijing confirmed on Wednesday, but imports of U.S. soybeans still face a 13% tariff.
The tariff commission of the State Council, or cabinet, will scrap duties of up to 15% imposed on some U.S. agricultural goods from November 10, while keeping levies of 10% introduced in response to President Donald Trump's "Liberation Day" duties.
Trump administration orders 10% of flights cut at major US airports due to shutdown
U.S. Transportation Secretary Sean Duffy said on Wednesday that he would order 10% of flights at 40 major U.S. airports to be cut starting Friday unless a deal to end the federal government shutdown is reached.
The shutdown, now in its 36th day and the longest in U.S. history, has forced 13,000 air traffic controllers and 50,000 Transportation Security Administration agents to work without pay. This has worsened staff shortages, caused widespread flight delays and extended lines at airport security screening.
