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Nasdaq Down Over 1%; Wells Fargo Beats Expectations

Published 13/10/2023, 19:50
© Reuters.  Nasdaq Down Over 1%; Wells Fargo Beats Expectations
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Benzinga - by Lisa Levin, Benzinga Editor.

U.S. stocks traded lower toward the end of trading, with the Nasdaq Composite falling more than 1% on Friday.

The Dow traded down 0.02% to 33,622.97 while the NASDAQ fell 1.27% to 13,401.56. The S&P 500 also fell, dropping, 0.64% to 4,321.66.

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Leading and Lagging Sectors

Energy shares climbed by 2.4% on Friday.

In trading on Friday, information technology shares fell by 1.5%.

Top Headline

Wells Fargo & Company (NYSE: WFC) reported better-than-expected earnings for its third quarter on Friday.

The bank’s quarterly EPS reached $1.48, beating the consensus of $1.24 and $0.86 a year ago The bank reported Q3 revenues of $20.86 billion, up 21% Y/Y, above the consensus of $20.11 billion.

For FY23, Wells Fargo expects net interest income to be ~16% higher than the FY22 level of $45.0 billion, up from prior guidance of ~14% higher, with 4Q23 expected to be ~$12.7 billion.

Equities Trading UP

Sigma Additive Solutions, Inc. (NASDAQ: SASI) shares shot up 115% to $5.33 after the company announced the signing of a definitive agreement for the acquisition of NextTrip Holdings, Inc.

Shares of Comtech Telecommunications Corp. (NASDAQ: CMTL) got a boost, shooting 28% to $10.44 after posting better-than-expected fourth-quarter results.

SunOpta Inc. (NASDAQ: STKL) shares were also up, gaining 27% to $3.64 after the company disclosed third-quarter preliminary results, asset sales, and CFO transition details.

Equities Trading DOWN

Outset Medical, Inc. (NASDAQ: OM) shares dropped 49% to $3.4588. The company announced preliminary revenue for the third quarter of $30.4 million, below the consensus estimate of $36.03 million.

Shares of SMART Global Holdings, Inc. (NASDAQ: SGH) were down 44% to $13.14 after the company reported worse-than-expected fourth-quarter financial results and issued a weak forecast for the first quarter.

Harmony Biosciences Holdings, Inc. (NASDAQ: HRMY) was down, falling 33% to $20.21 as the company announced topline results from the INTUNE Phase 3 study of pitolisant in patients with idiopathic hypersomnia (IH).

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Commodities

In commodity news, oil traded up 5% to $87.04 while gold traded up 3.1% at $1,941.40.

Silver traded up 4.1% to $22.85 on Friday while copper fell 0.7% to $ 3.5670.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 fell 0.98% London’s FTSE 100 fell 0.59% while Spain’s IBEX 35 Index fell 1.10% The German DAX fell 1.55% French CAC 40 fell 1.42%, while Italy’s FTSE MIB Index fell 0.90%.

Spain's annual consumer price inflation rose to a five-month high of 3.5% in September from 2.6% in August. The annual inflation rate in France came in at 4.9% in September, unchanged versus the prior month.

Asia Pacific Markets

Asian markets closed mostly lower on Friday, with Japan’s Nikkei 225 falling 0.55%, China’s Shanghai Composite Index falling 2.33% and Hong Kong’s Hang Seng Index dropping 0.64%. India’s S&P BSE Sensex, meanwhile, slipped 0.2%.

India recorded a merchandise trade deficit of $19.4 billion in September, compared to market expectations of a $23.3 billion gap. China's producer prices declined 2.5% year-over-year in September, while consumer prices came in unchanged from a year-ago in September.

Economics

Export prices in the U.S. increased by 0.7% month-over-month in September.

Import prices rose 0.1% month-over-month in September.

The University of Michigan consumer sentiment declined to 63 in October from 68.1 in the previous month, recording the lowest reading in five months.

The total number of active U.S. oil rigs rose by 4 to 501 rigs this week, Baker Hughes Inc reported.

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© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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