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Financial Markets 10/27 15:25
NEW YORK (AP) -- Stocks in the artificial-intelligence industry led Wall
Street higher on Tuesday, as their yo-yo moves swing back upward.
The S&P 500 rose 0.6% and pulled within 1.2% of its all-time high set
earlier this month. The Dow Jones Industrial Average added 15 points, or less
than 0.1%, and the Nasdaq composite climbed 1.2%.
The majority of stocks within the S&P 500 fell, but the gains for
influential AI stocks made up for that. AI stocks rose to another winning day
after swerving for weeks on worries about whether their boom is under threat
because of how expensive it's become for companies to borrow money to build
data centers and buy more AI chips.
Broadcom climbed 4% after announcing a $63 billion financing deal where
several Wall Street firms will help Anthropic get access to Broadcom's XPU AI
accelerators and networking solutions.
Elsewhere in the industry, Nvidia added 0.9% and was one of the strongest
forces behind Broadcom pushing the S&P 500 higher. CoreWeave, a company that's
borrowed money to buy AI chips that it rents out to customers over the cloud,
jumped 7.9% and was consistently higher through the day following several days
of sharp swings.
General Motors climbed 5.5% after saying it's moving its stock from a
listing on the New York Stock Exchange to the Nasdaq. The automaker said the
Nasdaq, which is home to several of the world's biggest technology stocks, is a
fit for its tech-driven strategy. The move could also allow GM to join the
Nasdaq 100 index, which would force investment funds that mimic the index to
buy it.
GM began trading on the NYSE in 1911.
JetBlue Airways flew 19% higher even though it reported a larger loss for
the summer than analysts expected. CEO Joanna Geraghty said the company expects
to return to making sustained operating profits next year and to deliver at
least $1 in earnings per share in 2028.
Investors may have been bracing for something worse after the airline's
stock came into the day with a loss of nearly 48% for the year so far.
Another travel company, Royal Caribbean Group, also helped lead the market
and rose 5.5%. The cruise operator delivered a stronger profit for the summer
than analysts expected, while raising its forecast for profit over the full
year.
Companies overall are under pressure to deliver big growth in profits.
Expectations are high among financial analysts and investors, and that's what
allowed their stock prices to run to records recently despite high inflation,
high interest rates and other concerns weighing on the market.
Boeing fell 10.7% after reporting a larger loss for the latest quarter than
analysts expected.
Hilton Worldwide Holdings sank 2.1% after reporting weaker revenue for the
summer than analysts expected. It also gave a range as a forecast for profit in
the final three months of the year whose midpoint fell below analysts'
expectations. The hotel company said it expects to see "increased impact from
the Middle East" during the quarter.
Sherwin-Williams fell 2.7% after delivering a weaker profit than analysts
expected. High mortgage rates have chilled the housing industry, which in turn
pressures demand for the paints and coatings Sherwin-Williams sells.
"Customer sentiment and the leading indicators we track point to muted
demand over the remainder of the year and into 2027," CEO Heidi Petz said. At
the same time, her company is dealing with inflation pushing up its costs for
raw materials.
Confidence among U.S. shoppers has tumbled recently as pressure keeps
building on them from high inflation. But a report on Tuesday said that U.S.
consumer confidence improved in October, when economists expected further
weakening.
All told, the S&P 500 rose 45.83 points to 7,722.60. The Dow Jones
Industrial Average added 15.99 to 52,377.57, and the Nasdaq composite rallied
308.43 to 26,477.81.
In the bond market, Treasury yields held relatively steady a day before the
Federal Reserve is scheduled to announce its latest decision on interest rates.
The Fed last month hiked the fed funds rate for the first time in three years
in hopes of slowing inflation, but the widespread expectation on Wall Street is
that it will hold rates steady this time.
The yield on the 10-year Treasury edged down to 4.99% from 5.00% late Monday.
Helping to keep yields in check was a drop for oil prices. The price for a
barrel of Brent crude fell 1.2% to $109.41.
In stock markets abroad, indexes were mixed across Europe and Asia. Stocks
jumped 3.1% in Seoul and fell 1.3% in Shanghai for two of the bigger moves.
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AP Writers Elaine Lai and Matt Ott contributed to this report.
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