Wall Street finished Tuesday mixed as investors followed the midterm elections and returned selectively to semiconductor stocks after several difficult sessions for technology.
The Nasdaq Composite gained 0.83% to close at 25,372.01, while the S&P 500 advanced 0.36% to 7,568.92. The Dow Jones Industrial Average moved in the opposite direction, declining 0.38% to approximately 51,787. [stocktitan.net], [fool.com]
Semiconductor shares helped lead the recovery. Nvidia and Broadcom each gained more than 3%, while the iShares Semiconductor ETF also advanced more than 3%. [investopedia.com]
Crude oil remained near $96 per barrel after Monday’s sharp decline, while the 10-year Treasury yield rose to approximately 4.97%. [investopedia.com], [fool.com]
💎 Diamond of the Day: Advanced Micro Devices (AMD)
Advanced Micro Devices earns our Diamond following its third-quarter earnings report after Tuesday’s closing bell.
The stock had already gained approximately 5% during the regular session, recovering part of an almost 20% decline over the preceding three trading days. After the earnings release, the shares moved approximately 5% higher in extended-hours trading. [investopedia.com], [stocktitan.net]
Advanced Micro Devices reported record quarterly revenue of approximately $13.4 billion, with the market reaction reflecting investor attention to continued data-center demand. [stocktitan.net], [fool.com]
Why It Shined
- Shares gained approximately 5% during Tuesday’s regular trading session. [investopedia.com]
- The stock rose another approximately 5% after hours following the earnings release. [stocktitan.net]
- Quarterly revenue reached a reported record of approximately $13.4 billion. [stocktitan.net]
- The results helped renew investor attention toward demand for data-center and artificial-intelligence processors. [fool.com]
Still, after a difficult stretch for semiconductor stocks, Advanced Micro Devices gave the chip sector a welcome boost after the bell.
🐕 Dog of the Day: Palantir Technologies (PLTR)
Palantir Technologies earns Tuesday’s Dog even though its reported quarter contained several impressive numbers.
The shares fell as much as approximately 6% during morning trading before recovering substantially. They ultimately closed at $175.40, down 1.65%, on trading volume approximately 66% above the three-month average cited by the source. [247wallst.com], [finance.yahoo.com], [fool.com]
The company reported third-quarter revenue of approximately $2.31 billion, up 96% year over year, exceeding the cited $2.17 billion consensus estimate. Adjusted earnings of $0.44 per share also exceeded a cited $0.40 consensus estimate, and the company increased its full-year sales outlook. [247wallst.com]
So why did the stock struggle?
Investors appeared to focus on slowing contract momentum and the company’s valuation. Remaining performance obligations were approximately $4.9 billion, unchanged from the preceding quarter, while total contract value grew 11% year over year after increasing 153% in the second quarter. [finance.yahoo.com], [fool.com]
Why It Barked
- Shares fell as much as approximately 6% in morning trading before closing down 1.65%. [247wallst.com], [fool.com]
- Revenue nevertheless climbed 96% year over year to approximately $2.31 billion. [247wallst.com]
- Adjusted EPS of $0.44 exceeded the cited $0.40 consensus estimate. [247wallst.com]
- Remaining performance obligations were unchanged sequentially at approximately $4.9 billion. [finance.yahoo.com], [fool.com]
- Total contract value growth slowed to 11% year over year, compared with 153% in the preceding quarter. [finance.yahoo.com], [fool.com]
This is not a story about weak reported revenue. It is another example of investors weighing favorable current results against expectations for future growth and the valuation already reflected in the share price.
Important Disclosure
This commentary is provided solely for informational and educational purposes and should not be considered a recommendation or solicitation to buy, sell, or hold any security, sector, or investment strategy. The “Diamond” and “Dog” designations reflect notable market performance and/or publicly reported developments and are not intended as investment recommendations or assessments of future performance. Analyst estimates are third-party expectations and may differ by source. Extended-hours trading may involve lower liquidity and greater volatility than regular-session trading, and after-hours prices may differ materially from subsequent regular-session prices. Past performance does not guarantee future results. Investing involves risk, including possible loss of principal.