Dow opens 300 points higher after GDP report tops expectations

Dow continues streak, Nasdaq and S&P 500 fall at close

The Dow ended up 194 points, or 0.6%, to 32,033 at close. That marks the fifth day of gains for the index.

The Nasdaq posted another day of losses, weighed down by sour tech earnings. The tech-heavy index closed down 178 points, or 1.6%, to 10,792.

Also down, the S&P 500 shed 23 points, or 0.6%, to end at 3,807.

— Alex Harring

Dow continues streak, Nasdaq and S&P 500 fall at close

The Dow ended up 194 points, or 0.6%, to 32,033 at close. That marks the fifth day of gains for the index.

The Nasdaq posted another day of losses, weighed down by sour tech earnings. The tech-heavy index closed down 178 points, or 1.6%, to 10,792.

Also down, the S&P 500 shed 23 points, or 0.6%, to end at 3,807.

— Alex Harring

Fox, Assurant hit 52-week lows

A few more stocks hit recent highs and lows throughout the trading day on Thursday.

New S&P 500 52-Wk Lows:

  • Fox Corporation Class B (FOX) trading at lows not seen since Nov. 2020
  • Twenty-First Century Fox (FOXA) trading at lows not seen since Dec. 2020
  • Assurant (AIZ) trading at lows not seen since March 2021
  • SVB Financial Group (SIVB) trading at lows not seen since Sept. 2020
  • Baxter (BAX) trading at lows not seen since April 2017

New S&P 500 52-Wk Highs:

  • Hershey (HSY) trading at all-time high levels back through our history to 1972
  • Hess (HES) trading at all-time highs back to its merger with Cletrac and public listing on the NYSE in 1962
  • Northrop Grumman (NOC) trading at all-time highs back to the merger between Northrop Aircraft and Grumman Aerospace in 1994.

— Jesse Pound, Christopher Hayes

GDP data likely not heavily impacting trading, Liz Young says

The Dow’s intraday rally was likely not due to the better-than-expected GDP data, said Liz Young, head of investment strategy at SoFi.

While she said the data does indicate that the economy was likely not in a recession in the third quarter, she cautioned that does not mean the economy could not move into one in the near future.

“I don’t think that that was a data point that was big on the market trading docket today,” she said.

She added the positive number was driven by “extraordinary items” including exports that may not last outside of the Russian invasion of Ukraine.

— Alex Harring

Where the indexes stand in the final hour

The Dow remains up, while the S&P 500 and Nasdaq are trading down in the final hour.

The Dow added 288 points. That’s less than the high of more than 500 points seen earlier in the day, but still brings the index up 0.9%.

The S&P 500 was down 0.4%. The tech-heavy Nasdaq was weighed down by disappointing tech earnings, dropping 1.5%.

— Alex Harring

Credit union association’s economist says price index data in GDP report supports 50 basis point increase from Fed in December

Thursday’s data on GDP and inflation supported the argument that the Federal Reserve should increase interest rates by 50 basis points at its December meeting, according to Curt Long, chief economist at the National Association of Federally-Insured Credit Unions.

Though he said it is still to early for the central bank to break from the recent trend of 75 basis point hikes at next week’s meeting, a “mild” step down makes sense given what data shows.

“Overall, this was exactly the type of report the Federal Reserve is looking for,” Long said.

— Alex Harring

AAII sentiment survey shows bullishness at a 9-week peak

Bullishness in the latest American Association of Individual Investors survey gained 4 percentage points to 26.6%, the highest since the August high of 27.7%. The poll measure sentiment among individual investors that stocks will rise over the next six months.

Bullishness has now been stuck below the historical average reading of 38.0% for 49 weeks, the AAII says.

Bearish sentiment dropped 10.6 points to 45.7% and has run above its long-term average (30.5%) for 48 out of the past 49 weeks. Neutral sentiment climbed 6.6 points to 27.7% in the latest survey, a 6-week high.

This week’s weekly Investors Intelligence survey of financial newsletter editors showed bullishness rising to 36.9% from 31.3% a week ago and a 6-year low of 25% the week before that.

— Scott Schnipper

2023 could bring the strongest rally in recent years, portfolio manager says

Downtrodden sentiment this year could bring “one of the strongest equity rallies that we’ve seen in recent years,” according to Peter Essele, head of portfolio management at Commonwealth Financial Network.

That “sets us up for a nice entry point for equities moving forward, especially with the backdrop of large declines this year pretty much across the board,” he said.

Essele pointed to foreign markets and tech’s performance as drivers of the sentiment, while noting the downward pressure could lead to upside potential. He said he is aligned more with a “bull” view going into the next year.

— Alex Harring

Chart analyst Katie Stockton says stocks are poised for a relief rally

Stocks could be poised for a bounce that could rival the summer rally, said Katie Stockton, founder of Fairlead Strategies.

“In September, we got a very widespread oversold rating, and that happens multiple times usually in bear market cycles, and sometimes you get a muted reaction,” Stockton said Thursday on CNBC’s “The Exchange.”

“This time we saw enough improvement in our short term momentum gauges to suggest we have a relief rally in store that could even rival the relief rally that we saw over the summer months,” she added.

Stockton said the indicators point to “at least several weeks of stabilization” for markets.

However, the chart analyst said she expects that the bear market will continue beyond the short term, and will brace for a downtrend that could take the S&P 500 back to 3,500 “potentially” in early 2023.

— Sarah Min

CNBC Pro screen: 5 cheap industrial stocks with upside ahead

Technology stocks have tumbled from their highs in this year’s market selloff, with earnings from some of the biggest giants suggesting more pain is ahead.

Against this backdrop, it may be time for investors to consider putting their money in some old-economy industrial stocks whose business models have changed relatively little over the years.

CNBC Pro conducted a screen to search for some of those potential opportunities and found five names trading cheap, with upside ahead.

Subscribers can check out the stocks that made the cut here.

— Samantha Subin

Mixed bag of earnings leaves stocks struggling for direction, says Oanda’s Ed Moya

“U.S. stocks are struggling for direction after a mixed bag of earnings was accompanied with economic data that supports the idea that the economy is weakening,” said Edward Moya, senior market analyst at OANDA. “It looks like the economy is still headed for a recession, but that might reinforce Fed pivot calls which still seems to be driving some inflows back into equities.”

— Alex Harring

Cyber stocks climb

While tech stocks are lagging the rest of the market overall, cybersecurity names are solidly higher on the day.

Shares of Zscaler are up more than 2% on the day, while CrowdStrike, Fortinet and Palo Alto Networks have each added more than 1%.

Concerns about an economic slowdown have hurt some areas of tech and communications services, especially those stocks that are exposed to digital advertising. But cybersecurity is viewed by many on Wall Street as an industry where revenues should be stickier and may continue to grow in a recession.

— Jesse Pound

Apple has often closed lower the day after earnings

Apple was trading lower ahead of its after-the-bell earnings Thursday, as investors soured on big tech after some high profile earnings misses.

Birinyi Associates notes that Apple has beaten earnings estimates in each of the past eight quarters, but it has closed lower the next day after six of those reports.

After four of those quarterly releases, the stock was also lower a week later.

Apple was down about 2.9% Thursday afternoon. Birinyi notes that the companiy is expected to report earnings of $1.26 per share on revenues of $88.63 billion after the market close.

Options imply a move of about 5% in either direction post-earnings, the firm noted.

—Patti Domm

Cybersecurity names are worth watching amid economic downturn, Brown and Harrington say

As the U.S. economy slows and grapples with an upcoming recession, certain names in technology including cybersecurity make sense for investors, according to Josh Brown and Jenny Harrington.

“It’s the thing that you can’t cut because if you do and something happens, it wipes out everything else that you’re doing,” said Brown, co-founder and CEO of Ritholtz Wealth Management on Thursday’s “Halftime Report.”

Harrington, the chief executive officer of Gilman Hill Asset Management, agreed. Last quarter, she noted, Salesforce underperformed while Palo Alto Networks did well.

“We need to think about as we get into a trickier economic cycle, where are the chief technology officers and the chief financial officers willing to spend, and they have no choice but to spend on CrowdStrike and Palo Alto,” she said, adding that companies could trim spending in Salesforce and ServiceNow and be okay for awhile.

“That’s why you can’t just buy the software index,” she said. “You have to be choosy.”

—Carmen Reinicke

Meta Platforms, Credit Suisse, Align Technology among stocks making the biggest moves midday

Dow stays up, S&P 500 and Nasdaq down at midpoint

Despite being off its 500-point high, the Dow was up 343 points, or 1.1%, as the markets enter the second half of the trading day.

The S&P 500 dipped 0.1% after moving above and below flat for much of the day. The Nasdaq, weighed down by Meta earnings, was down 1.1%.

— Alex Harring

Rent the Runway down 90% a year after going public

Rent the Runway is down 90%, marking the end of a difficult first 12 months for the e-commerce brand since going public.

The pandemic hurt demand for the rental clothing business, CEO Jennifer Hyman said to CNBC in August. But she does she an opportunity as the economy reopens and the need for new clothing increases in turn.

“Because of the fact that we’ve been cooped up for the last two years, we’ve not been attending holiday parties and weddings and dinners with our friends and vacations,” Hyman told CNBC. “I think that there’s even more demand than ever to have those experiences.”

It’s among a rash of companies that went public during the pandemic now struggling. The stock is down 77.4% compared to the start of 2022.

Barclays expects earnings beat for Apple

When Apple reports fiscal fourth quarter earnings after the bell Thursday, Barclays believes it will surpass Wall Street’s estimates.

The firm expects Apple’s earnings-per-share will come in at $1.32 for the quarter, compared to FactSet estimates of $1.27, thanks to stronger gross margins and lower operating costs. Specifically, Barclays sees resilient iPhone demand.

“Stronger hardware revenues, aided by still robust demand for IP14, especially the pro line and much better supplies (China reopening helping Macs), should more than offset worsening FX (200bps incremental) and weaker Services revenue as App Store declined and TAC [Tap & Connect] is expected to decelerate in the Sep Q to [high single digit] growth,” analyst Tim Long wrote in a note Wednesday..

Barclays’ price target implies 3.78% upside from Wednesday’s close. The tech giant is down nearly 16% year to date.

— Michelle Fox

Bank of America economists expect Powell to signal Fed could slow hiking pace by December

Bank of America economists expect the Federal Reserve to raise interest rates by three-quarters of a point next Wednesday and also signal that it could slow its hiking pace in December.

The economists expect the Fed will discuss reducing the size of its hikes behind closed doors. Fed Chairman Jerome Powell then may acknowledge the fact the Fed had a debate over slowing interest rate increases from 75 basis points. A basis point equals 0.01 of a percentage point.

 “But we think the Chair will balance this by saying that no decision was taken and that the committee’s decision will ultimately be based on the evolution of data during the intermeeting period,” the economists wrote. “We think this would be enough of a signal for markets that the committee is inclined, but not committed, to raise its policy rate by 50bp in December.”

–Patti Domm

How the S&P 500 sectors are performing

The following sectors within the S&P 500 are trading up Thursday:

  • Industrials (1.9%)
  • Energy (1.7%)
  • Utilities (1.3%)
  • Financials (1.2%)
  • Materials (0.3%)
  • Consumer staples (0.3%)

Meanwhile, the following four sectors are down:

  • Consumer discretionary (-0.1%)
  • Health care (-0.3%)
  • Information technology (-0.6%)
  • Communication services (-2.6%)

The final sector, real estate, was near flat.

— Alex Harring

Energy stocks help lead market higher, as strategist sees breakout coming in crude oil

Energy stocks rallied Thursday and was the best performing major sector, as oil prices rose.

The Energy Select Sector SPDR Fund, reflecting the S&P enegy sector, was up 1.9% in morning trading. Oil prices were higher on strong demand, after U.S. data Wednesday showed record exports of U.S. crude.

West Texas Intermediate crude oil could be ready to break out, according to Fairlead Strategies founder Katie Stockton. WTI futures were at $89.50 per barrel, up 1.8% in morning trading.

“WTI crude oil has cleared its 50-day MA [moving average] and is positioned for a breakout above cloud-based resistance on improved intermediate-term momentum,” wrote Stockton. “Next resistance is ~$96/bbl. The strength has allowed for breakouts in energy stocks supporting near-term follow-through.”

–Patti Domm

Caterpillar on pace for best day since 2020

Caterpillar is on track for its best day since early in the pandemic after the company beat expectations when reporting earnings.

The manufacturing stock is up 9.2%. If that holds, it will be its strongest day-over-day change since March 24, 2020, when it gained 10.3%.

Caterpillar posted earnings of $3.95 per share compared to $3.16 expected. It also beat on revenue, coming in at $14.99 billion against an anticipated $14.33 billion.

The stock is up 3.8% this year.

— Alex Harring

Dow breaks 500 points, Nasdaq turns positive

The Dow traded up more than 500 points as investors found hope in the better-than-expected GDP data. That translates to an increase of about 1.7%.

The Nasdaq, struggling earlier on struggling tech earnings, also turned positive, trading up 0.1%.

— Alex Harring

S&P 500 stocks hitting fresh highs and lows

Meta Platforms and Align Technology were among the stocks hitting fresh lows on the back of disappointing earnings reports. The Facebook parent plunged more than 23% to last trade near levels not seen since February 2016. Invisalign maker Align Technology was last trading near its lowest level since April 2020.

These stocks also notched fresh lows:

  • Alphabet C share trading at lows not seen since February 2021
  • Alphabet A share trading lows not seen since February 2021
  • West Pharmaceutical Services trading at lows not seen since June 2020
  • Invitation Homes trading at lows not seen since March 2021

A slew of stocks also hit record highs, with Merck shares last trading at their highest level since available history, dating back to 1978. Humana last traded at its highest level since its 1968 IPO as Extendicare.

These stocks also notched fresh highs:

  • AutoZone trading at all-time high levels back to its IPO in April 1991
  • General Parts Company trading at all-time high levels back to its IPO in 1948
  • O’Reilly Auto trading at all-time high levels back to its IPO in April 1993
  • Campbell Soup Company trading at levels not seen since January 2021
  • J.M. Smucker Company trading at levels not seen since August 2016
  • ConocoPhillips trading at all-time highs back to the merger between Conoco and Phillips Petroleum in 2002
  • Marathon Petroleum trading at all-time highs back to its spinoff from Marathon Oil in June 2011
  • Exxon trading at all-time highs back to when it was listed on the NYSE in 1920
  • Globe Life trading at all-time high levels back to when Torchmark Corp was initially formed in 1980
  • Principal Financial trading at all-time high levels back to its IPO in 2001.
  • Amgen trading at levels not seen since January 2021
  • Cardinal Health trading at levels not seen since January 2018
  • Cigna trading at all-time high levels back to its IPO in 1972
  • Humana trading at all-time high levels back to its IPO as Extendicare in 1968, the company was renamed Humana in 1974
  • Merck & Co. trading at all-time high levels back through our history to 1978
  • Rollins Inc trading at levels not seen since January 2021
  • Corteva trading at all-time highs back to its spin-off from DowDuPont in May 2019
  • Constellation Energy trading at all-time high levels back to its spin-off from Exelon in January 2022
  • PG&E trading at levels not seen since March 2020

— Samantha Subin

S&P 500 continues to seesaw

The S&P 500 turned positive once again, continuing to fluctuate between slightly positive and negative in the first hour of trading.

— Alex Harring

S&P 500 moves negative after opening positive

The S&P 500 has turned red.

The index was down 0.4%. It was previously up around 0.3% shortly after open.

— Alex Harring

Future consumer spending could determine economic landing, economist says

A strong labor market and stockpile of savings is helping consumer spending, which in turn helped make Thursday’s GDP data better than expected. That means consumers will be the linchpin of whether the economy has a hard or soft landing, said Jeffrey Roach, chief economist for LPL Financial.

Roach said the narrowing trade deficit also helped the U.S. GDP change course and grow.

But he said this positive movement may not be the case long-term as it is unclear what consumer spending will look like going forward.

“The U.S. is not currently in recession, given the strength of the consumer sector. However, excluding the more volatile categories, the trajectory for growth looks weak,” Roach said. “A deteriorating housing market and nagging inflation along with an aggressive Federal Reserve puts the economy on unsure footing for 2023.”

However, he said a silver lining is that markets have likely already priced in much of what a near-term recession would entail.

— Alex Harring

Maybe stocks are looking at that third-quarter price index for reassurance this morning

Call it holiday cheer come early. Maybe stock market investors are focusing on the part of the third quarter GDP report that focuses on prices, gaining insight into the likely pace of inflation this winter.

“The bigger surprise was in the GDP price index which came in at 4.1% vs. 5.3% forecast — well off the 9.0% prior,” wrote Ian Lyngen, BMO Capital Markets’ head of U.S. rates strategy on its fixed income strategy team, referencing the Commerce Department’s Bureau of Economic Analysis report on gross domestic product Thursday.

“This conforms well with the peak inflation narrative and has incrementally contributed to the bounce in Treasuries this morning,” he added.

— Scott Schnipper, Patti Domm

Dow opens higher at market open

The Dow added 463 points, or 1.5%, as markets entered the first hour of trading.

The S&P 500 increased 0.3%.

The Nasdaq, hurt by disappointing tech earnings, was down 0.3%.

— Alex Harring

Oil services and energy ETFs and stocks set the world on fire in October

Oil services and energy ETFs and stocks have given more than a year’s worth of gains in just four weeks.

Consider: VanEck Oil Services ETF (OIH) is higher by 40.6% so far in October — the best month since November 2020, when it rocketed 44.1%.

That’s been powered by month-to-date gains of 66% in Nabors (NBR); Transocean (RIG) +50%+; and ChampionX (CHX), up by almost 50%.

Meanwhile, the Energy Select Sector SPDR Fund (XLE) is higher more than 24% in October, also on pace for its biggest monthly pickup in two years. Inside the ETF, Halliburton (HAL) is up over 48% in October; SLB has risen more than 45% and APA by 35%.

The  SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has added almost 23% so far in October, on track for the best month since February 2021. Leaders include Permian Resources (PR), up over 46% MTD; Archaea Energy (LFG), higher by more than 43%; and Par Pacific (PARR), with a 43% advance.

— Scott Schnipper, Gina Francolla

US GDP helped by price deflator, has been flat this year, Boockvar says

The third quarter US gross domestic product number came in better than expected, showing signs of accelerating growth in an economy plagued by high inflation.

One of the main reasons for the reading was the price deflator, which came in much lower than expected, a potential sign that inflation is easing up, according to Peter Boockvar of Bleakley Financial Group.

“Thanks to a much lower than expected price deflator, Real Q3 GDP beat estimates with a 2.6% increase vs the estimate of 2.4%,” he said. “Looking at nominal growth, the estimate was 7.7% and we got 6.7%. Thus, if the price deflator came in as expected, the Real GDP print would have been 1.4%.”

Looking over the entire year, however, this number only offsets sluggishness in earlier quarters, Boockvar said.

“Bottom line, on a REAL basis, the US economy has flat lined this year,” Boockvar said in a Thursday note. He expects inflation to continue to weigh on growth and lead to another negative reading.

“Entering the year chained GDP was $20.006 Trillion and we ended Q3 a hair above at $20.022 Trillion. Inflation though has the economy bigger nominally speaking as the nominal GDP figure ended Q3 at $25.66 Trillion vs $24.35 Trillion at the end of 2021,” Boockvar wrote.

“After this positive print for Q3, expect another negative GDP print in Q4,” he said.

—Carmen Reinicke

Jobless claims and durable goods come in lower than expected

Initial jobless claims for the week ended Oct. 22 totaled 217,000, a 3,000 increase from the prior week’s unrevised level of 214,000, according to the Labor Department. However, the figure is lower than StreetAccount estimates of 223,000. Continuing claims were more than 1.4 million.

Meanwhile, U.S. durable goods orders also came in lower than expected. They rose 0.4% to $274.7 billion, the U.S. Census Bureau announced, versus the StreetAccount expectations of a 0.6% increase. Excluding transportation, new orders decreased 0.5%.

— Michelle Fox

Futures feel upward momentum from GDP report

The better-than-expected GDP report gave a boost to the three major futures indexes heading into the final hour of pre-market trading.

Dow futures broke 300 points up and were trading around 0.8% higher than the flatline.

Futures for the S&P 500, which were at one point trading down, added 0.1% following the data.

Though still in the negative, Nasdaq 100 futures were able to make up some ground, now down about 0.4%.

— Alex Harring

European Central Bank hikes rates by 75 basis points

The European Central Bank raised rates by 75 basis points, or 0.75 percentage point, marking the third straight increase by the central bank.

The ECB also disclosed new conditions for its targeted longer-term refinancing operations, or TLTROs.

“During the acute phase of the pandemic, this instrument played a key role in countering downside risks to price stability. Today, in view of the unexpected and extraordinary rise in inflation, it needs to be recalibrated,” the ECB said in a statement Thursday.

Read our full story on the ECB decision here.

— Silvia Amaro

GDP grows at slightly hotter-than-expected pace in Q3

Altria dips after missing expectations

Cigarette company Altria Group shed 2.7% in pre-market trading after missing expectations as it continues to struggle with the national decline in smoking.

Earnings per share came in at $1.28, two cents less than expected. The company also came in lower on revenue, reporting $5.41 billion compared to the expected $5.59 billion.

— Alex Harring

Stocks moving in the pre-market: Honeywell, Caterpillar and more

Earnings reports continued to drive stock moves Thursday in pre-market trading.

Here are some of the biggest moves:

  • Honeywell: The stock added 4.6% after the industrial company beat earnings expectations for third quarter. It cited growth in advanced materials, commercial aerospace and building products businesses.
  • Caterpillar: Shares popped 5.1% on earnings that beat on the top and bottom lines. The company posted earnings of $3.95 per share compared to $3.16 expected and revenue of $14.99 billion against an anticipated $14.33 billion.
  • Northrop Grumman: The defense company shed 3.8% after missing revenue expectations for its third quarter, coming in at $8.97 billion compared to forecasts of 9.13 billion.

See the full list here.

— Sarah Min, Alex Harring

S&P 500 futures flash red, trade near flat

Futures tied to the S&P 500 moved negative after trading near flat but slightly in the green.

The index ended Wednesday down 0.7%, which snapped a three-day winning streak.

— Alex Harring

Comcast adds 8% following earnings report

Comcast shares jumped 8% in the pre-market after it reversed course on broadband subscriber growth in its third quarter.

The media giant beat per-share earnings expectations by 6% at 96 cents.

Comcast also narrowly exceeded expectations on revenue, posting $29.85 billion compared to the $29.65 billion expected. But revenue was down 1.5% compared to the same quarter a year ago.

The company added 14,000 broadband customers, a turn after not adding any in the prior quarter. But it lost 561,000 pay-TV customers, continuing a downward trend in the industry with the rise of streaming.

— Alex Harring

Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC.

McDonald’s shares rise in pre-market after beating expectations

Fast food giant McDonald’s was trading up 2.9% before the bell after beating expectations for the third quarter.

Earnings per share came in at $2.68, $100 million higher than the $2.58 expected by analysts.

Revenue was also about 3% higher than anticipated at $5.87 billion.

The company attributed its performance to growing traffic in restaurants, which is a turn from declines reported by others in the industry.

— Alex Harring

GDP report out at 8:30 a.m. expected to show one-time acceleration in growth

Investors will get a look at how well the economy performed during the third quarter when data on gross domestic product comes out at 8:30 a.m.

The Bureau of Economic Analysis report could paint a deceptively strong picture on growth, with economists surveyed by Dow Jones expecting the reading to show an annualized gain of 2.3%. Cyclical factors that likely won’t repeat in future quarters are projected to fuel that gain, which would be the strongest of 2022 by a wide margin.

“We expect that such a number will overstate the strength of the U.S. economy and will be driven in large part by international trade dynamics. Core aspects of the economy such as consumer spending and housing have weakened materially over the course of 2022,” Morningstar said in a client note.

The report also will show how high inflation rose during the quarter, with the chain-weighted price index expected to rise 5.3%. Data on durable goods spending also is due out at 8:30.

Honeywell shares rise after earnings beat

Honeywell traded 1% higher after the industrial company posted better-than-expected third-quarter earnings.

The company earned $2.25 per share last quarter, excluding certain items, on revenue of $8.95 billion. Analysts expected earnings of $2.16 per share on revenue of $8.98 billion, according to StreetAccount.

“Despite ongoing challenges across supply chains, we grew sales by 6% on a reported basis and 9% organically, with strong double-digit growth in our advanced materials, commercial aerospace, and building products businesses,” CEO Darius Adamczyk said.

“Our backlog remains near record levels, closing the third quarter at $29.1 billion, up 9% year over year, and providing us with confidence in our demand expectations against an increasingly uncertain macroeconomic backdrop,” he added.

— Fred Imbert

Caterpillar shares pop after earnings

Caterpillar traded more than 3% higher after the industrial giant posted quarterly results that beat expectations.

The company earned $3.95 per share on revenue of $14.99 billion. Analysts expected a profit of $3.16 per share on revenue of $14.33 billion. Caterpillar’s operating profit also rose 16.2% year over year.

— Fred Imbert

Morgan Stanley downgrades Meta after earnings miss

Morgan Stanley analyst Brian Nowak downgraded Meta to equal weight from overweight, citing lower free cash flow and higher capital expenditures.

“We see META’s $69bn of capex over 2 years and AI-driven data center build as a sign of structurally higher capital intensity,” Nowak wrote in a Thursday note. “While these investments could make META stronger over 5 years, we see ’23 FCF heading 60% lower and higher risk to prove ROIC and incremental growth.”

CNBC Pro subscribers can read more here.

— Sarah Min

Credit Suisse posts huge third-quarter loss as it announces major strategic overhaul

Signage hangs over the entrance of a Credit Suisse Group AG branch in Zurich, Switzerland, on Sunday, Sept. 25, 2022. Inflation in Switzerland has more than doubled since the start of the year and the State Secretariat for Economic Affairs expects it to come in at a three-decade-high of 3% for 2022. Photographer: Pascal Mora/Bloomberg via Getty Images

Bloomberg | Bloomberg | Getty Images

Credit Suisse on Thursday posted a quarterly loss that was significantly worse than analyst estimates, as it announced a massive strategic overhaul.

The embattled lender posted a third-quarter net loss of 4.034 billion Swiss francs ($4.09 billion), but noted that the scale of the loss reflected a 3.655 billion Swiss franc impairment relating to the “reassessment of deferred tax assets as a result of the comprehensive strategic review.”

In its widely anticipated strategic shift, Credit Suisse vowed to “radically restructure” its investment bank to significantly cut its exposure to risk-weighted assets, which are used to determine a bank’s capital requirements. It also aims to cut its cost base by 15%, or 2.5 billion Swiss francs, by 2025.

Read the full story here.

– Elliot Smith

European markets retreat as investors track earnings, ECB meeting; Credit Suisse down 7%

European markets pulled back slightly on Thursday as investors digested a slew of corporate earnings and looked ahead to the European Central Bank’s latest monetary policy announcement.

The pan-European Stoxx 600 fell 0.2% in early trade, with tech stocks shedding 1.6% to lead losses while oil and gas stocks added 1.8%.

Investors are waiting to see the outcome of Thursday’s European Central Bank meeting, which is expected to deliver a 75 basis point rate hike.

Credit Suisse shares fell more than 7% in early trade after the Swiss bank reported a mammoth third-quarter loss and announced a radical strategic overhaul in a bid to return to long-term profitability.

– Elliot Smith

CNBC Pro: Stocks and bonds are struggling. Give these strategies a shot, say Goldman and others

Both stocks and bonds have struggled this year, leaving investors with few alternatives.

Analysts share their strategies on how to thrive in these difficult conditions — including one behind the success of an index that was “almost a mirror image” of the losses in the S&P 500 index.

CNBC Pro subscribers can read more here.

— Weizhen Tan

CNBC Pro: These ‘all-weather’ stocks can protect your portfolio in a recession, says outperforming fund manager

Top Wall Street executives say a recession is coming. But these three stocks “will work in any type of economic environment,” says Foord Asset Management’s Brian Arcese.

The portfolio manager, whose funds have outperformed the market this year, shared how investors can “recession proof” their portfolios.

Pro subscribers can read more here.

— Zavier Ong

Earnings from Amazon, Apple on deck for Thursday

Big Tech earnings continue Thursday with results from Amazon and Apple due out after the bell.

Investors have been closely watching technology behemoths for signs of a bottom as rising rates steer investors away from the growth area. Given their sheer scope and size, these stocks also have the tendency to swing markets.

So far this season, reports from Microsoft and Alphabet painted a disappointing picture for the sector. The Google parent dropped more than 9% on Thursday following a revenue and earnings miss, while Microsoft dropped nearly 8% on weak cloud revenue.

Shares of Meta Platforms dropped more than 19% in postmarket trading on a weak fourth-quarter forecast and earnings miss.

When Apple reports results Thursday, investors will keep close watch for details on iPhone 14 sales and how the latest model is faring amid a concerning macro picture.

— Samantha Subin

ServiceNow, Align Technology move on earnings

Companies that reported earnings results after the bell were among the stocks making the biggest moves in extended trading Wednesday.

Shares of ServiceNow surged more than 11% in extended trading despite a slight revenue miss as earnings per share came in above Wall Street’s expectations. The news pushed other cloud stocks higher, including Arista Networks, which gained more than 8%.

Invisalign maker Align Technology toppled more than 19% on a top and bottom line miss, with earnings per share coming in 82 cents below expectations.

— Samantha Subin

Meta sinks 19% on disappointing outlook, earnings miss

Shares of Meta Platforms plummeted more than 19% in extended trading Wednesday after the Facebook parent shares a weak fourth-quarter forecast and earnings estimates fell show of Wall Street’s expectations.

Meta Platforms reported adjusted earnings per share of $1.64 on revenues of $27.71 billion. Analysts surveyed by Refinitiv had expected earnings of $1.89 a share on $27.38 billion in revenue. The technology behemoth also posted its second consecutive revenue decline.

For the fourth quarter, the company said it expects revenue to come in between $30 billion to $32.5 billion, compared to consensus estimates of $32.2 billion.

Meta Platforms faces a slew of challenges including headwinds from Apple’s privacy changes and a tough advertising environment as recession fears mount.

As of Wednesday’s close shares have toppled more than 61% this year.

— Samantha Subin

Nasdaq 100 futures opens lower, S&P and Dow futures rise

Stock futures opened mixed in overnight trading Wednesday.

Futures tied to the Nasdaq 100 fell 0.2%, while S&P 500 futures and futures tied to the Dow Jones Industrial Average gained 0.12% and 0.22% respectively.

— Samantha Subin

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