U.S. stocks closed sharply higher in a broad rally on Tuesday after data signaled a solid economy, but investors braced for volatile trading this week as voting was underway in an extremely tight U.S. presidential election.
Market Snapshot
The S&P 500 gained 70.07 points, or 1.23%, to end at 5,782.76 points, while the Nasdaq Composite gained 259.19 points, or 1.43%, to 18,439.17. The Dow Jones Industrial Average rose 427.28 points, or 1.04%, to 42,221.88.
Market Movers
Palantir - Palantir Technologies soared 23.5% after the software company reported a30% jump in third-quarter revenueto $726 million, beating analysts’ estimates of $705 million. U.S. revenue soared 44%. The gains were fueled by demands for artificial intelligence.
“We absolutely eviscerated this quarter, driven by unrelenting AI demand that won’t slow down. This is a U.S.-driven AI revolution that has taken full hold. The world will be divided between AI haves and have-nots. At Palantir, we plan to power the winners,” said CEO Alex Karp. The company also boosted fiscal-year revenue guidance.
Trump Media & Technology - Trump Media & Technology Group fell 1.2% on Election Day after jumping 12% on Monday.Trump Mediaowns the Truth Social platform and is majority-owned by former President Donald Trump. Polls have shown the race between Trump and Vice President Kamala Harris for U.S. president remains tight.
Nvidia, Apple - Nvidia was up 2.8%. The semiconductor maker, whose chips are the favored choice for training artificial-intelligence models, closed with a market capitalization of $3.432 trillion on Tuesday, edging past Apple, which had a market value of $3.378 trillion, according to Dow Jones Market Data. It is the first time Nvidia is the largest U.S. company by market cap since June 18. Apple stock rose 0.7%.
Tesla - Tesla shares gained 3.5% on Tuesday as investors weighed impact of Trump and Harris.
Super Micro Computer - Super Micro Computer rose 6.4%. The server maker will be issuing a fiscal first-quarter “business update” after the stock market closes Tuesday. Recent developments have created a cloud of uncertainty over the company’s accounting practices. In a filing Oct. 30, Super Micro disclosed that its accounting firm, Ernst & Young, had resigned, citing its unwillingness to be “associated with the financial statements prepared by management.” Super Micro shares fell 45% last week, their worst week on record, according to Dow Jones Market Data.
Boeing - Boeing reached a deal with union employees to end a damaging strikeof nearly eight weeks that will allow the aerospace giant to get back to the business of making planes. Boeing’s latest offer received support from 59% of workers. The deal will raise average machinist wages from to $119,000 a year from roughly $76,000, according to Boeing. Shares fell 2.6%.
Astera Labs - Astera Labs jumped 37.7% after reportingthird-quarter adjusted earnings and revenuethat beat Wall Street expectations and issuing guidance for the fourth quarter that also exceeded estimates. The semiconductor company said it expects adjusted earnings of 25 cents to 26 cents a share on revenue between $126 million to $130 million.
Celanese - Celanese declined 26.3% after the chemical materials company reported quarterly earnings that missed analysts’ expectations and said it wouldtemporarily reduce its quarterly dividend by about 95%beginning in he first quarter of 2025.
Emerson - Emerson Electric rose 7.2% after the industrial-automation company said itexpects adjusted earnings for the fiscal year ending in September 2025of $5.85 to $6.05 a share on sales of $18.1 billion to $18.5 billion. Wall Street has been projecting earnings of $5.91 a share on sales of $18.2 billion. Emerson also offered to buy all the stock in industrial software provider Aspen Technology that it doesn’t already own for $240 a share in cash.
GlobalFoundries - Shares of GlobalFoundries gained 154.9% after the chip maker said it anticipates fourth-quarter adjusted earnings of between 39 cents and 51 cents a share, higher than Wall Street estimates of 37 cents. Revenue was forecast at between $1.8 billion and $1.85 billion, compared with estimates of $1.8 billion.
Marqeta - Marqeta plummeted 42.5% after the financial-technology company said itexpects net revenue growth in the fourth quarter of 10% to 12%and gross profit growth of 13% to 15%. Marqeta had previously said it expected revenue growth of 16% to 18% and gross-profit growth of about 25% to 27%. “Our fourth-quarter guidance reflects several changes that became apparent over the last few months with regards to the heightened scrutiny of the banking environment and specific customer program changes,” the company said in a statement.
Cirrus Logic - Cirrus Logic declined 7.1% after the component supplier to Apple said it expects third-quarter revenue of between $480 million and $540 million, lower than analysts’ forecasts of $590 million.
NXP Semiconductors - NXP Semiconductors was down 5.2%. The Netherlands-based chip maker for Apple and Hyundai semiconductor issued disappointing fourth-quarter guidance, saying it was “confronted with increasing macro related weakness in the Industrial & IoT market. Our guidance for the fourth quarter reflects broader macro weakness especially in Europe and the Americas.”
DuPont - DuPont gained 4.7% after the chemicals giant reportedthird-quarter adjusted earningsof $1.18 a share, beating estimates of $1.03. The company also raised fiscal-year earnings guidance, saying it expects adjusted profit of $3.90 a share.
Archer-Daniels Midland - Archer Daniels Midland fell 6% after the agricultural company issuedthird-quarter guidancebelow estimates and said it would restate previously filed fiscal 2023 results and results for the first and second quarters of fiscal 2024 to “restate segment information disclosures.”
Market News
Strong Rebound in Employment Hoists US Services PMI to More Than Two-Year High
The U.S. services sector accelerated to a more than two-year high in October as employment rebounded strongly, suggesting that a near stall in job growth last month was an aberration.
The surprise strength in the vast services sector reported by the Institute for Supply Management (ISM) on Tuesday indicated that the economy retained most of its momentum early in the fourth quarter and was in solid shape as Americans headed to the polls to pick the next president.
The ISM's nonmanufacturing purchasing managers (PMI) index jumped to 56.0 last month, the highest reading since July 2022, from 54.9 in September. Economists polled by Reuters had forecast the services PMI declining to 53.8.
A PMI reading above 50 indicates growth in the services sector, which accounts for more than two-thirds of the economy. The ISM views PMI readings above 49 over time as generally indicating an expansion of the overall economy.
Super Micro Sales Outlook Misses Estimates, Cannot Predict Timing of Annual Filing
Super Micro Computer, whose auditor unexpectedly stepped down last week, on Tuesday flagged uncertainty about the timing of its annual report but said a probe about accounting practices had not found evidence of fraud by the company.
Shares of the San Jose, California-based server maker fell about 15% in extended trading.
The company said it expects net sales between $5.5 billion to $6.1 billion for the second quarter, compared with analysts' estimates of $6.86 billion, according to data compiled by LSEG.
It said the company expects profits between 48 cents and 58 cents per share, far below estimates of 75 cents per share.
