Fed Decision Looms as AI and Tech Take the Lead

S&P 500 futures moved higher on Wednesday as investors waited for the Federal Reserve’s interest rate decision and major tech earnings. Tech stocks rose globally after strong results from ASML boosted confidence in the artificial intelligence trend.

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Major Indexes: S&P 500 higher, Nasdaq higher, Dow slightly lower, Russell 2000 higher

Leading Sectors: Technology, Consumer Discretionary, Communication Services, Materials

Lagging Sectors: Health Care, Consumer Staples, Utilities, Financial

ASML (ASML): The chip equipment maker reported record orders and gave strong long-term guidance as demand from artificial intelligence keeps growing. The company also announced a large share buyback program.

Starbucks (SBUX): Starbucks reported higher store traffic for the first time in two years, signaling its turnaround strategy is gaining traction. The company also posted mixed quarterly results, issued full-year earnings guidance, and announced plans to sell a majority stake in its China business.

Texas Instruments (TXN): The chipmaker issued better-than-expected guidance for the upcoming quarter, helping offset a recent earnings miss and boosting confidence in its outlook.

Seagate Technology (STX): Seagate reported strong quarterly earnings and revenue, beating expectations, but shares pulled back after a strong recent run.

Qorvo (QRVO): The chipmaker issued weaker-than-expected earnings guidance, raising concerns about near-term demand.

F5 (FFIV): The cloud and security company delivered a strong earnings and revenue beat and issued an upbeat outlook for the next quarter.

Western Digital (WDC): Shares moved higher as strong results from a competitor sparked renewed interest across the memory and storage sector. The company is scheduled to report earnings soon.

AT&T (T): The telecom company reported quarterly results and approved a sizable new share repurchase program.

Stride (LRN): The online education provider delivered a major earnings beat, topping expectations on both profit and revenue.

NextPower (NXT): The solar technology company beat quarterly expectations and raised its full-year earnings and revenue outlook.

StandardAero (SARO): Shares fell after the company announced a large stock offering priced below recent trading levels.

PPG Industries (PPG): PPG reported mixed quarterly results, missing earnings expectations but beating on revenue, and issued a cautious growth outlook for the coming year.

GE Vernova (GEV): GE Vernova beat quarterly expectations and raised its long-term revenue outlook following a recent acquisition, while also increasing its cash flow targets.

Amphenol (APH): Despite strong earnings, record annual results, and an upbeat outlook, shares declined, possibly due to investor expectations or acquisition-related concerns.

Corning (GLW): Corning reported record results and issued strong guidance while raising long-term growth targets, though shares still moved lower.

General Dynamics (GD): The defense contractor reported solid earnings and revenue and posted a growing backlog, signaling strong demand across its business lines.

VF Corp (VFC): VF Corp beat earnings expectations, reaffirmed improved guidance, and declared a dividend, though investors reacted cautiously.

Progressive (PGR): Progressive reported recent financial results and announced a planned leadership transition with its longtime CFO set to retire next year.

Automatic Data Processing (ADP): ADP reported higher revenue and earnings and raised its full-year guidance, reflecting continued strength in payroll and workforce services.

Regenxbio (RGNX): The FDA placed clinical holds on two gene therapy programs after a safety issue emerged in one trial participant, prompting investor concern.

Skyworks Solutions (SWKS): Shares declined in sympathy after weak guidance from a peer raised concerns across the chip sector, especially amid merger uncertainty.

Otis Worldwide (OTIS): Otis reported weaker-than-expected quarterly results and issued a cautious outlook, despite steady cash flow expectations.

Elevance Health (ELV): The insurer issued lower earnings guidance for the coming year due to higher medical costs, even as revenue continues to grow.

Prosperity Bancshares (PB): The bank beat earnings expectations, expanded margins, and announced a major acquisition that would significantly increase its scale in Texas.

C3.ai (AI): Shares rose after reports surfaced that the company may be in merger talks with Automation Anywhere.

Wix.com (WIX): Wix announced a large multi-year share repurchase program, signaling confidence in its long-term business outlook.

Intel (INTC): Intel shares rose as strong results and guidance from major chipmakers improved sentiment across the semiconductor sector.

(Stocks showing elevated volume and notable price movement)

Gainers: SYY, PTRN, ZM, CGON

Losers: CVLT, HUM, UNH, ELV, PAR, PINS, MMYT, CEG, MNDY, FIG

Disclaimer: This newsletter is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consider consulting a financial professional before making investment decisions.