Nasdaq Gains Over 200 Points as Amazon Shares Soar Post Earnings

U.S. stocks experienced a significant upswing during Friday's trading session, with the Nasdaq Composite gaining more than 200 points.

The Dow Jones Industrial Average rose 1.18% to close at 42,254.81, while the NASDAQ climbed 1.31% to reach 18,332.35. The S&P 500 also saw an increase, up 0.95% to 5,759.63.

Sector Performance

Among the leading sectors, consumer discretionary shares surged by 2.9% on Friday, showcasing strong performance.

Conversely, utilities stocks took a hit, declining by 1.1%.

Key Highlights

Amazon.com Inc. (NASDAQ: AMZN) saw its shares jump by 7% after reporting impressive third-quarter results that exceeded expectations.

In its quarterly report, Amazon disclosed net sales of $158.9 billion, marking an 11% increase year-over-year. This figure surpassed the consensus estimate of $157.2 billion. Looking ahead, Amazon anticipates fourth-quarter net sales to range between $181.5 billion and $188.5 billion, which represents a year-over-year growth of 7% to 11%.

Stocks on the Rise

• ChromaDex Corporation (CDXC) shares soared 55% to $5.41 following a significant year-over-year increase in its third-quarter earnings per share (EPS) and an upward revision of its fiscal year 2024 revenue guidance.
• Proto Labs, Inc. (PRLB) experienced a boost, with its shares rising 31% to $36.54 after reporting better-than-expected third-quarter financial results and providing fourth-quarter adjusted EPS guidance above estimates.
• Interface, Inc. (TILE) saw its shares gain 33%, reaching $23.15, after its third-quarter financials exceeded expectations and it raised FY24 net sales guidance above estimates.

Stocks Declining

• ESSA Pharma Inc. (EPIX) faced a steep drop of 70%, with shares falling to $1.58 following the announcement of the termination of its Phase 2 study evaluating a combination therapy.
• Shares of Myriad Genetics, Inc. (MYGN) fell 21% to $17.24 as the company prepares to hold its third-quarter earnings conference call on November 7.
• Lexicon Pharmaceuticals, Inc. (LXRX) experienced a decline of 36%, with shares dropping to $1.2550 after the outcome of an FDA advisory committee meeting regarding its New Drug Application for Zynquista.

Commodity Market Updates

In commodities, oil prices climbed 1.1% to reach $70.04, while gold saw a slight rise of 0.2% to $2,753.70.

Silver prices slipped by 0.1% to $32.755, but copper rose by 0.5%, closing at $4.3635.

International Markets Overview

European markets also performed well today. The Eurozone's STOXX 600 increased by 1.25%, while Germany's DAX gained 1.10%. France's CAC 40 rose by 1.05%, and Spain's IBEX 35 surged by 1.42%. London's FTSE 100 climbed 1.06%.

In Asia, markets were mostly down on Friday. Japan's Nikkei 225 fell by 2.63%, while Hong Kong's Hang Seng Index gained 0.93%. China's Shanghai Composite Index experienced a slight decline of 0.24%, and India's BSE Sensex was down by 0.27%.

Economic Indicators

• The U.S. economy added 12,000 jobs in October, significantly lower compared to the revised gain of 223,000 in September and below market expectations of 113,000.
• Average hourly earnings rose by 0.4% month-over-month, bringing the average pay to $35.46. The unemployment rate remained unchanged at 4.1% in October.
• Construction spending in the U.S. increased by 0.1% month-over-month, reaching an annual rate of $2,148.8 billion in September.
• The S&P Global Flash manufacturing PMI was revised upward to 48.5 in October, compared to a preliminary reading of 47.8.
• However, the ISM manufacturing PMI fell to 46.5 in October from 47.2 the previous month, missing estimates of 47.6.

Conclusion

Overall, Friday's trading session showed strong gains in the U.S. stock market, largely driven by Amazon's impressive earnings report. Investors should keep an eye on upcoming economic data and corporate earnings that could continue to influence market dynamics.

stocks, market, Amazon