By Abigail Summerville
(Reuters) – U.S. stock indexes closed lower on Wednesday as chip stocks fell and investors awaited a series of corporate earnings.
Microsoft (NASDAQ and Meta Platforms (NASDAQ ) reported earnings after the bell, and both beat quarterly revenue estimates.
Shares of Alphabet (NASDAQ ), the first of five “Magnificent Seven” mega-cap stocks to report results this week, rose 2.8% after the company on Tuesday beat expectations for third-quarter revenue and earnings. quarter.
Alphabet helped offset the decline in chip stocks, weighed down by tough forecasts from Advanced Micro Devices (NASDAQ and Qorvo (NASDAQ , which fell 10.6% and 27.3%, respectively.
Meanwhile, shares of Super Micro Computer (NASDAQ:) plunged 32.6% after Ernst & Young resigned as the company's accounting officer. Nvidia (NASDAQ fell 1.4%.
The information technology sector fell the most, falling 1.34%, while Alphabet's earnings boosted the communication services sector.
“Qorvo, Advanced Micro and Super Micro are three pretty big moves that are causing a bit of angst and taking some of the bloom out of Google's stellar impression last night,” said Michael James, chief equity officer. trading at Wedbush Securities.
“The focus will be clearly on action-specific reporting and guidance,” James said.
They fell 91.51 points, or 0.22%, to 42,141.54, lost 19.25 points, or 0.33%, to 5,813.67 and lost 104.82 points, or 0.56%, to 18,607.93 .
In economic data, U.S. gross domestic product rose at an annualized rate of 2.8%, according to the Commerce Department's advance estimate of third-quarter GDP, slightly below economists' forecast for 3.0% growth. 0%.
A separate report showed private payroll growth in the United States rose by 233,000 jobs more than expected in October.
The tight race between US presidential candidates Kamala Harris and Donald Trump was also on investors' minds ahead of the November 5 election.
Eli Lilly (NYSE fell 6.2% after missing sales estimates for its popular diabetes and weight loss drugs.
Starbucks (NASDAQ reported after-hours earnings showing a drop in quarterly sales as global demand suffers.
Rising issues outnumbered declining ones by a ratio of 1.01 to 1 on the New York Stock Exchange. There were 210 new highs and 52 new lows on the New York Stock Exchange.
The S&P 500 posted 24 new 52-week highs and five new lows, while the Nasdaq Composite posted 126 new highs and 98 new lows.
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