Stock Market Update: Tech Stocks Lead Wall Street Losses

The stock market is expected to see further losses on Thursday following a significant slump in the previous session, primarily driven by technology shares. The Nasdaq Composite, which experienced a 2.4% drop on Wednesday, is set to open considerably lower again today. Meta Platforms, the parent company of Facebook and Instagram, contributed to this downward trend with its latest earnings report.

Meta Platforms (META) Reports Strong Earnings but Faces Challenges

Despite posting third-quarter earnings that exceeded analysts’ expectations, Meta Platforms experienced a 3.9% decline in premarket trading. The company’s chief financial officer warned about weaker advertising demand anticipated for the fourth quarter. This announcement impacted the shares of Meta Platforms negatively.

International Business Machines (IBM) Sees Positive Results from AI Push

International Business Machines announced that its third-quarter earnings met Wall Street estimates. The company’s CEO also shared that IBM’s focus on artificial intelligence is beginning to show promising results. As a result, IBM’s stock rose by 1.5%.

ServiceNow (NOW) Surpasses Expectations with Strong Q3 Performance

ServiceNow, an IT workflow-management software company, outperformed analysts’ expectations with its third-quarter adjusted earnings. Additionally, the company raised its full-year financial guidance due to its aggressive efforts in integrating generative artificial intelligence across its product line. Shares of ServiceNow experienced a 4.2% increase following this news.

Align Technology (ALGN) Struggles with Disappointing Results

Align Technology, the maker of Invisalign orthodontic aligners, saw a significant drop of 25% following the release of its third-quarter adjusted earnings and revenue. These results fell below analysts’ estimates, which the company attributed to lower-than-expected demand and a challenging macro environment compared to the first half of 2023.

Despite these setbacks, investors remain cautious as they navigate the unpredictable landscape of the stock market.

Ford Motor Reaches Tentative Contract Agreement

Ford Motor (F) saw a 1.8% increase in its stock price following the announcement that it has reached a tentative contract agreement with the United Auto Workers union. This four-year deal is still pending approval from the 57,000 union members at Ford. The strike against the Detroit Three auto makers—Ford, General Motors (GM), and Stellantis (STLA)—began nearly six weeks ago.

Mattel Beats Earnings Expectations and Raises Profit Forecast

Mattel (MAT) exceeded expectations for its third-quarter earnings and has raised its profit forecast for the fiscal year. In the third quarter, sales rose by 9% to $1.92 billion, primarily driven by growth in the dolls segment, including popular brands like Barbie and Disney Princess dolls. However, despite these positive results, the stock experienced a 10% drop in premarket trading as Mattel warned of slowing demand during the upcoming holiday season.

Anticipated Third-Quarter Earnings for Amazon.com

Wall Street analysts are expecting Amazon.com (AMZN) to report third-quarter earnings of 58 cents per share on sales amounting to $141.5 billion, representing an 11% increase compared to the previous year. The performance of Amazon’s flagship online stores business, the projected rebound in the growth rate for Amazon Web Services (AWS) – the company’s cloud computing business, and the continued strength of its advertising arm are expected to be the key factors influencing these results.

Other Companies Reporting Earnings

On Thursday, earnings reports are also expected from several other notable companies, including Intel (INTC), Mastercard (MA), Southwest Airlines (LUV), Merck (MRK), Comcast (CMCSA), United Parcel Service (UPS), Honeywell (HON), Bristol Myers Squibb (BMY), and Altria (MO).