MARKET SNAPSHOT

U.S. stocks ended lower, after a higher start, as investors sifted through the latest earnings reports and economic data. Yields on long-dated Treasurys fell after a weaker-than-expected reading on third-quarter U.S. economic growth. Gold prices reached a record high as the dollar slipped. Oil prices climbed amid an unexpected decline in U.S. inventories.

MARKET WRAPS

EQUITIES

The Nasdaq Composite pulled back from Tuesday's record high following mixed results in the latest corporate earnings reports.

The U.S. economy continued growing last quarter, but at a slower pace than the previous period, according to preliminary gross domestic product figures. Meanwhile, payroll data from ADP showed private-sector jobs in October grew more than economists expected.

The Nasdaq Composite dipped 0.6%, a day after clinching a new record. The S&P 500 shed 0.3%, while the Dow industrials edged down 0.2%.

Earlier Wednesday, Chinese shares ended mostly lower, with tech and insurance stocks leading declines.

The benchmark Shanghai Composite Index lost 0.6%, the Shenzhen Composite Index was flat and the ChiNext Price Index declined 1.2%. Hong Kong's Hang Seng Index gave back nearly 1.6%.

Japan's Nikkei Stock Average added 1%, supported by auto and tech stocks.

Australia's S&P/ASX 200 dropped 0.8%, snapping a three-day winning streak, amid blue-chip weakness.

New Zealand's NZX-50 shed 0.7%, slipping lower for the week amid weakness in consumer, travel and financial stocks.

COMMODITIES

Oil futures gained, with official U.S. data showing a surprise decline in crude supplies in the latest week and strength in gasoline demand, prompting prices to post their first gain in three sessions.

Talk of a potential postponement of production hikes by major oil producers also provided support, but geopolitical worries continued to fade and traders have focused attention on a shaky demand outlook and prospects for ample supply, which contributed to Tuesday's drop in oil prices to a seven-week low.

West Texas Intermediate crude for December delivery rose 2.1%, to settle at $68.61 a barrel on the New York Mercantile Exchange. December Brent crude climbed 2%, settling at $72.55 a barrel on ICE Futures Europe.

Gold topped $2,800 an ounce for the first time ever, but one analyst warned that the upward movement for prices may be "limited" going forward as strength in Treasury bond yields is a reminder to investors of the high opportunity cost of the non-yielding precious metal.

The most-active December gold futures contract touched a high of $2,801.70 before settling at an all-time high of $2,800.80, up 0.7% for the session.

Fawad Razaqzada, market analyst at City Index and Forex.com, however, said that, for gold, "the upside is going to be limited from here on."

"The high opportunity cost of non-yielding assets like gold is becoming increasingly evident as bond yields soar," he said.

TODAY'S TOP HEADLINES

U.S. Economic Growth Extends Solid Streak

The U.S. economy continued its recent strong stretch this summer, bolstered by hefty consumer and government spending.

Gross domestic product increased at a 2.8% annual rate in the third quarter, adjusted for seasonality and inflation, the Commerce Department said Wednesday. GDP is a broad measure of goods and services produced across the economy.

That was a slight slowdown from the second quarter's 3% rate, and below economists' expectations for a 3.1% pace. Still, the July-to-September period marked a continuation of a roughly two-year streak of strong growth for the U.S. economy even in the face of historically high borrowing costs.

U.S. Hiring Surged in October, Thanks Partly to Hurricane Relief

Hiring gained a lot of pace in October, suggesting that last month's increase wasn't a blip and that easier monetary policy is allowing more zest in the U.S. labor market.

The private sector added 233,000 jobs in October, accelerating from 143,000 a month prior and outstripping economists' forecasts by nearly double, according to the ADP National Employment report released Wednesday.

Part of the uptick was because of emergency work made necessary in the aftermath of hurricanes that devastated parts of Florida, North Carolina and elsewhere over the month. But even putting hurricane recovery to one side, October's job growth was strong, said Nela Richardson, ADP's chief economist.

Microsoft Earnings Show AI is Bolstering Demand for Cloud Services

Microsoft reported strong quarterly growth in its cloud-computing business that indicated its heavy investment in artificial intelligence is paying off.

Revenue for the tech giant's Azure cloud business-a core of its AI offering-rose 33% in the quarter through September, beating analysts' expectations.

The Redmond, Wash., company's overall revenue rose 16% to $65.6 billion as its net income climbed 11% to $24.7 billion. Analysts were expecting revenue of $64.57 billion and net income of $23.15 billion.

Meta Reports Record Revenue, Slower Digital Advertising Growth

Meta Platforms on Wednesday reported record third quarter revenue despite slower digital advertising growth, bolstering profits that helped fund billions in artificial intelligence and augmented reality investments.

The company posted $40.59 billion in sales, up 19% compared with a year earlier, slightly beating Wall Street expectations. The revenue growth was slower compared with the April-to-June period, when Meta reported annual revenue growth of 22%. Advertising made up 96% of Meta's third-quarter revenue.

Fourth quarter revenue is expected to be between $45 billion and $48 billion, versus analysts' expectations of $46.12 billion, according to FactSet data.

Taiwan's Race for Secure Internet Detours Around Musk's Starlink

TAIPEI-Elon Musk's space company operates the world's most powerful satellite-internet system near Earth. It still hasn't reached Taiwan.

The island democracy is racing to ensure that its government, military and people could stay online in the event of an invasion or blockade by China.

SpaceX's Starlink network, with some 6,500 satellites in low-Earth-orbit providing high-speed internet from Kyiv to Vanuatu, would appear to be Taiwan's most reliable option. Taiwan officials have discovered that assembling an alternative is proving an expensive and challenging endeavor.

Expected Major Events for Thursday

00:00/NZ: Oct ANZ Business Outlook

00:30/AUS: 3Q International Trade Price: Export

00:30/AUS: 3Q International Trade Price: Import

00:30/AUS: Sep Retail Trade

00:30/AUS: Sep Financial Aggregates, incl Private Sector Credit

00:30/AUS: Sep Building Approvals

01:00/JPN: Sep Steel Imports & Exports Statistics

01:30/CHN: Oct CFLP China Manufacturing Purchasing Managers' Index $(PMI.UK)$

01:30/CHN: Oct CFLP China Non-Manufacturing Purchasing Managers' Index (PMI)

03:00/SKA: Sep New deposit, loan rates

04:30/JPN: Sep Preliminary Report on Petroleum Statistics

05:00/JPN: Sep Housing Starts

05:00/JPN: Sep Construction Orders

05:30/AUS: Sep International Reserves & Foreign Currency Liquidity

08:00/TAI: 3Q Advance GDP

08:15/HK: Sep Money Supply

08:30/HK: 3Q Advance GDP

08:59/JPN: Japan Monetary Policy Meeting decision

09:59/PHI: Sep Money Supply (M3)

09:59/HK: Sep Tourism figures

21:45/NZ: Sep Building Consents Issued

22:00/AUS: Oct Australia Manufacturing PMI

00:00/SKA: Oct Trade data

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This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

October 30, 2024 16:55 ET (20:55 GMT)

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