Dow Jones Today: Stocks extend gains as banks jump on strong earnings; Nvidia Lead Chipmaker Rebounds

ASML is down sharply again, leading Nasdaq decliners

23 minutes ago

ASML Holding ( ASML ) shares plunged again on Wednesday, one day Investors were disappointed after the company released its first earnings.

The Netherlands-based semiconductor-gear maker cut its 2025 net sales forecast to 30 billion euros to 35 billion euros ($32.7 billion to $38.1 billion.), in the lower half of the company's previously expected range and below 36.1-billion. Consensus estimates of analysts compiled by Visible Alpha.

Third-quarter results were originally expected to be released on Wednesday but appeared early on the company's website due to a “technical error”.

Shares of ASML were down 7% on Wednesday afternoon, leading the Nasdaq Composite decliners, after plunging 16% after Tuesday's preliminary results. The stock fell into negative territory for the year on Tuesday and is now down 10% year-to-date.

–Andrew Kessel

Watch Apple price level as stock nears record high

1 hour 11 minutes ago

Shares of Apple ( AAPL ) fell nearly 1% in midday trading Wednesday after the stock briefly hit a new record high yesterday, the same day the tech giant unveiled the latest version of its Apple Intelligence-compatible iPad mini.

Although Apple shares have gained 20% since the start of the year, the stock has traded mostly sideways in the past three months amid concerns that the delayed rollout of its highly anticipated Apple Intelligence could lead to softer demand for the company's flagship iPhone 16, which launched last month.

The stock broke above an ascending triangle on Tuesday on the highest trading volume since September 20, suggesting institutional investment.

Investors should observe key overhead levels around $237 and $270 on Apple's chart, as well as important support levels during retracements near $233, $225, and $218. The stock was around $231 in recent trading.

Read the full technical analysis piece here.

–Timothy Smith

US Bancorp stock jumped as earnings topped expectations

2 hours 55 minutes ago

US Bancorp ( USB ) shares jumped Wednesday as its profit got a boost from higher-than-expected net interest income.

The bank reported third-quarter earnings (EPS) of $1.03, topping the consensus estimate of analysts surveyed by Visible Alpha by $0.04. Revenue fell 2.4% year over year to $6.86 billion, slightly below forecasts.

Net interest income (NII) of $4.17 billion was down 2.4% from 2023, but up 2.8% from the second quarter. It also exceeded expectations. Net interest margin increased to 2.74% from 2.67% in the previous quarter, although it was down from 2.81% last year.

Like many of its rivals, US Bancorp added to its reserves for credit losses, which rose 8.2% year over year to $557 million.

Shares of US Bancorp rose nearly 5% on Wednesday to their highest level since early last year. In 2024 they have increased by about 14%.

–Bill McCall

United rises on strong earnings, stock buyback news

4 hours 27 minutes ago

United Airlines (UAL) shares came after the carrier unveiled plans for a $1.5 billion share buyback, its first since the pandemic, and also reported quarterly results that beat analysts' estimates.

Late Tuesday, United reported third-quarter adjusted earnings (EPS) of $3.33 per share, ahead of its own guidance and analysts polled by Visible Alpha. It estimated fourth-quarter consolidated EPS of $2.50 to $3.00 per share, with the midpoint below the $2.92-per-share apparent alpha estimate.

The airline said the shortage in airline capacity that plagued the industry this year has been resolved.

United Chief Executive Officer (CEO) Scott Kirby said, “According to forecasts, unproductive capacity left the market in mid-August and we saw a clear trend in our revenue trends that led United to exceed expectations for the third quarter.”

United's $1.5 billion share buyback marks its first buyback plan since suspending its program in 2020 during the Covid-19 pandemic.

The stock rose 9% in recent trading, to its highest level since early 2020.

–Nisha Gopalan

Morgan Stanley stock rose after strong results

4 hours 40 minutes ago

Morgan Stanley ( MS ) shares jumped Wednesday morning after the company became the latest bank to beat estimates for the third quarter, with year-over-year revenue and profit growth.

The bank reported revenue of $15.38 billion in the quarter, up from $13.27 billion last year and more than a billion dollars more than analysts expected, according to estimates compiled by Visible Alpha. Morgan Stanley reported an increase in net interest income (NII) from $1.98 billion to $2.2 billion, which only some of its banking rivals have managed so far this quarter.

Profit also came in above estimates of $3.2 billion, up from Morgan Stanley's net income of $2.44 billion last year.

Shares of Morgan Stanley rose more than 8% in morning trading, having risen nearly 30% this year, outpacing the S&P 500's gains during the period.

–Aaron McDade

Nvidia levels to watch after Tuesday's drop

6 hours 8 minutes ago

Nvidia ( NVDA ) shares moved higher in premarket trading on Wednesday after falling sharply yesterday, a day after setting a record closing high.

This fall came on Tuesday Bloomberg reported that the Biden administration is considering banning AI chip exports to some Middle Eastern countries. The news boosted optimism about increased demand for Nvidia's chips from tech giants that are hyperscaling their AI infrastructure amid tight supply.

Nvidia shares rose above a multi-month symmetrical triangle earlier this month, although the breakout occurred on below-average volume, indicating a lack of conviction behind the move.

Investors should look for key support levels on Nvidia's chart near $125, $115, and $97, as well as the measured price target at $177. The stock rose 0.8% to $132.65 in recent premarket trading.

Read the full technical analysis piece here.

–Timothy Smith

Futures points for major indices open slightly higher

6 hours 53 minutes ago

Futures linked to the Dow Jones Industrial Average rose fractionally.

S&P 500 futures rose 0.1%.

Nasdaq 100 futures rose 0.2%.