The Dow Jones Industrial Average closed at 28,514.00 on Wednesday with a loss of 165.81 points or -0.58%. The S&P 500 closed at 3,488.67 for a loss of 23.26 points or -0.66%. The Nasdaq Composite closed at 11,768.73 for a loss of 95.17 points or -0.80%. The VIX Volatility Index was higher at 26.40 for a gain of 0.33 points or 1.27%.
Wednesday's Market Movers
U.S. indexes closed with losses for a second day.
Bank of America, Goldman Sachs and Wells Fargo released earnings from among the big banks. Goldman Sachs reported a big beat and credit loss provisions in general have been heavily better than expected.
- Bank of America (BAC, Financial): Revenue of $20.3 billion decreased -11.0% year over year and missed estimates by $580 million. Q3 GAAP EPS of $0.51 beat estimates by $0.01.
- Goldman Sachs (GS, Financial): Revenue of $10.78 billion increased 29.6% year over year and beat estimates by $1.38 billion. Q3 GAAP EPS of $9.68 beat estimates by $4.24.
- Wells Fargo (WFC, Financial): Revenue of $18.86 billion decreased -14.3% year over year and beat estimates by $990 million. Q3 GAAP EPS of $0.42 missed estimates by $0.03.
UnitedHealth (UNH, Financial) saw revenue of $65.12 billion, which increased 7.9% year over year and beat estimates by $1.15 billion. Q3 GAAP EPS of $3.30 beat estimates by $0.46 and non-GAAP EPS of $3.51 beat estimates by $0.43.
Investors were also watching Covid-19 vaccine developments as Eli Lilly (LLY, Financial) has halted Covid-19 trials that were testing a drug in combination with Gilead's (GILD, Financial) Remdesivir. Trials by AstraZeneca (AZN, Financial) and Johnson and Johnson (JNJ, Financial) also still remain on hold. The Nasdaq Biotech Index was down -1.31%.
In other news:
- Alcoa (AA, Financial) released earnings. Revenue of $2.37 billion decreased -7.8% year over year and beat estimates by $120 million. Q3 GAAP EPS of -$0.26 beat estimates by $1.13 and non-GAAP EPS of -$1.17 beat estimates by $0.08.
- Fastly (FSLY, Financial) was down 30% after lowering its guidance.
- The International Monetary Fund IMF released a report showed global gross domestic product down -4.4% for the year, an improved outlook from a -5.2% decline. The IMF believes growth in China will help the global results.
Economic reports affecting market trading included the following:
- The MBA Mortgage Applications Index decreased -0.7% following an increase of 4.6%. The MBA's average 30-year mortgage rate decreased to 3.00% from 3.01%.
- The Producer Price Index (PPI) increased 0.4% in September and 0.4% year over year. The Core PPI excluding food and energy increased 0.4% in September and 1.2% year over year.
- The Treasury held auctions for 105-day bills at a rate of 0.105% and 154-day bills at a rate of 0.120%.
Small-Cap Stocks
In small-caps, the Russell 2000 closed at 1,621.65 for a loss of 15.20 points or -0.93%. The S&P 600 closed at 917.35 for a loss of 4.92 points or -0.53%. The Dow Jones U.S. Small-Cap Growth Index closed at 11,533.68 for a loss of 98.10 points or -0.84%. The Dow Jones U.S. Small-Cap Value Index closed at 7,260.12 for a loss of 41.56 points or -0.57%.
Other Notable Indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 1,984.28 for a loss of 8.79 points or -0.44%; the S&P 100 at 1,615.32 for a loss of 13.18 points or -0.81%; the Nasdaq 100 at 11,985.36 for a loss of 97.81 points or -0.81%; the Russell 3000 at 2,053.25 for a loss of 13.30 points or -0.64%; the Russell 1000 at 1,950.12 for a loss of 12.28 points or -0.63%; the Wilshire 5000 at 35,827.27 for a loss of 235.50 points or -0.65%; and the Dow Jones US Select Dividend Index at 614.81 for a loss of 0.70 points or -0.11%.
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