1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Julie Young
Julie Young
Articles (1527) 

US Indexes Close Lower Wednesday

Bank of America, Goldman Sachs and Wells Fargo report earnings

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 (NYSE:BAC): 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 (NYSE:GS): 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 (NYSE:WFC): 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 (NYSE:UNH) 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 (NYSE:LLY) has halted Covid-19 trials that were testing a drug in combination with Gilead's (NASDAQ:GILD) Remdesivir. Trials by AstraZeneca (NASDAQ:AZN) and Johnson and Johnson (NYSE:JNJ) also still remain on hold. The Nasdaq Biotech Index was down -1.31%.

In other news:

  • Alcoa (NYSE:AA) 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 (NYSE:FSLY) 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%.

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

About the author:

Julie Young
Julie Young is a financial writer with comprehensive experience in the financial services industry. She writes about investments, investment products, financial market news and economic trends. Julie has a Master of Science in finance from Boston College and a Bachelor of Science in finance from the University of Arkansas.

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:



Performances of the stocks mentioned by Julie Young


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)