The S&P 500 and Dow Jones Industrial Average reached new highs, boosted by strong third-quarter earnings from major banks.
The S&P 500 climbed 0.6%, while the tech-heavy Nasdaq Composite added 0.35%. The Dow Jones Industrial Average added 0.89%, and the Russell 2000 Index rose 1.77%.
JP Morgan Chase popped 5% after surpassing profit and revenue expectations, while Wells Fargo jumped almost 6% on better-than-expected profit.
Nvidia traded flat at $135. AMD gained 3% after introducing new chips.
S&P 500 big stock movers today
Five S&P 500 stocks making big midday moves are:
- Uber Technologies (UBER) +10.1%
- Fastenal (FAST) +9.8%
- Wells Fargo (WFC) +6.3%
- Domino’s Pizza (DPZ) +5.7%
- WW Grainger (GWW) +5.7%
The worst-performing five S&P 500 stocks with the largest midday drop are:
- Tesla (TSLA) -8.2%
- AO Smith (AOS) -6.7%
- Align Technology (ALGN) -3.3%
- Broadcom (AVGO) -2.3%
- Palantir Technologies (PLTR) -1.8%
Stocks also worth noting include:
Tesla
Tesla falls after robotaxi event
Tesla shares sank 8% after a disappointing robotaxi event.
Tesla CEO Elon Musk introduced the Cybercab, a vehicle consumers could purchase for under $30,000. Tesla aims to begin production before 2027.
Related: Analyst unveils bold 'Apple-esque' Tesla stock forecast
JP Morgan describes the event as “underwhelming” and maintains an underweight rating with a $130 target on the stock.
The firm said the event lacked important details on sensors, regulatory approval, and business plans. Tesla’s decision to sell robotaxis to individuals rather than only for its own use may reduce investor optimism, shifting focus from long-term returns to up-front vehicle sales, the analyst said.
Tesla stock is down nearly 12% year-to-date.
AMD gains after new AI chip launch
Advanced Micro Devices added 3% after the company launched a new artificial intelligence chip that directly competes with Nvidia.
The new chip, Instinct MI325X, will start production before the end of 2024, AMD said on Oct. 10.
Related: Analysts reset AMD stock outlooks after AI acquisition
Piper Sandler raised AMD's price target to $200 from $175 and kept an overweight rating after the event, thefly.com reported.
Piper notes that AMD raised its projected AI accelerator market size to $500 billion by 2028, up from $400 billion by 2027, and believes AMD will capture a “significant share.”
The firm views AMD as well-positioned in the data center market and considers it their top large-cap stock pick.
Wells Fargo jumps after earnings
Wells Fargo gained 6% after the banking company reported Q3 earnings that exceeded expectations.
The company earned $1.52 per share, higher than the $1.28 expected. Revenue of $20.37 missed the $20.42 billion forecast.
Wells Fargo reported $11.69 billion in net interest income, down 11% from the year-earlier quarter and short of analysts’ estimate of $11.9 billion. The bank attributed the decline to increased funding costs as customers moved to higher-yield deposit products.
More Wall Street Analysts:
- Analysts update Meta stock price target with Q3 earnings in focus
- Analysts update outlook for Nvidia's Blackwell chips amid AI boom
- Analyst reboots Reddit stock price target ahead of earnings
“Our earnings profile is very different than it was five years ago as we have been making strategic investments in many of our businesses and de-emphasizing or selling others,” CEO Charles Scharf said in a statement.
“Our revenue sources are more diverse and fee-based revenue grew 16% during the first nine months of the year, largely offsetting net interest income headwinds,” he said.
Wells Fargo stock is up 24% year-to-date.
Related: Veteran fund manager sees world of pain coming for stocks
