The DOW JONES index, which fell 0.10% at the opening, managed to turn around and rose 0.19% at mid-morning to 47,565.55 points. The most bullish value is UnitedHealth, which rises 1.89%, compared to the 1.58% recorded by Merck&Co. On the negative side, Microsoft fell 2.48% and Caterpillar lost 1.51%.
The S&P 500 fell 0.07% to 6,824.428 points, while the technology Nasdaq fell 0.31% to 23,341.82 points.
Wall Street is coming off a bullish day yesterday, although during part of the session the three major indices moved flat or even in negative territory. Finally, the DOW JONES rose 0.39% at the close of the regular session, while the S&P 500 advanced 0.25% and the technology Nasdaq 0.59% was recorded.
The markets have been shaken since last November by the doubts generated by the high valuations of securities linked to artificial intelligence (AI) and the enormous capital expenditures that technology companies are undertaking. But some analysts believe they can still continue to bring joy to investors.
«I think the benefits of AI will continue to be strong. … We’re going to see more contribution from the hardest-hit sectors, and we’re starting to see some of the hardest-hit, shorter-cycle industrial sectors start to have more pricing power,» Ohsung Kwon, chief equity strategist at Wells Fargo, told CNBC. “I don’t think it’s a bubble yet.”
Today the day is marked by the publication of the ADP private sector employment report for the month of Novemberwhich has been known before the opening. Companies cut 32,000 jobswith small businesses being the most affected: Companies with 50 or more employees recorded a net increase of 90,000 jobs, while those with fewer than 50 workers destroyed 120,000 jobs.
This job destruction marks a drastic change from October, when an upwardly revised gain of 47,000 jobs was recorded. The consensus estimate from Dow Jones economists had pointed to an increase of 40,000 jobs.
“This data will be very important since it is the only updated information on the US labor market that investors and the Federal Reserve (Fed) will have before the meeting of the Federal Open Market Committee (FOMC) next week (days 9 and 10),” says Juan J. Fernández-Figares of Link Gestión. The markets estimate an 89.2% chance of a 25-point rate cut during the December meetingaccording to CME Group’s Fedwatch tool. The probability that rates will remain in the current range, between 3.75% and 4%%, is only 10.8%.
In fixed income, always very aware of monetary policy, the ten-year US bond offers a return of 4.060%.
Main values of Wall Street
Microsoft shares start with falls after The Information has published that the company is cutting sales quotas for software linked to AI, given customer resistance to new products.
Macy’s has surprised the market with unexpected profits in its third quarter. The retailer obtained an adjusted profit of 9 cents per share, while analysts had expected a loss of 14 cents per share. Revenues also exceed market forecasts, with a figure of 4.71 billion dollars compared to the 4.62 billion that analysts had estimated.
The company has also raised its forecasts for the year, raising the sales figure to a range of between $21.47 billion and $21.62 billion. However, even these improved sales forecasts are lower than last year’s annual sales figures, sending a signal of caution about the mood of the American consumer. Shares fell 3.4% at the open.
Among the notable companies of the day is Marvell Technology, which rises 6.4%. The semiconductor company announced yesterday the acquisition of Celestial AI for at least $3.25 billion in cash and stock. The purchase price could rise to $5.5 billion if Celestial hits revenue milestones, according to Marvell.
The company also reported third-quarter earnings that beat expectations and, on its earnings call, indicated that it expects data center revenue to increase 25% in the next fiscal year.
Apparel retailer American Eagle Outfitters soars 13% after announcing a strong start to the holiday shopping season. American Eagle raised its comparable sales forecast for the fiscal fourth quarter to a range of between 8% and 9%. Previously, it had anticipated a single-digit increase.
The company’s fiscal third-quarter results also beat expectations, with earnings per share of 55 cents on revenue of $1.36 billion. Analysts had expected earnings of 44 cents per share and revenue of $1.32 billion.
GitLab shares fall 10% even though the technology company has improved its forecasts for the year. The company now expects earnings of 95 to 96 cents per share, after adjustments, for the full yearcompared to a previous forecast of between 82 and 83 cents per share. Annual revenue would be between $946 million and $947 million, compared to $936 million and $942 million previously. GitLab also named Jessica Ross as its CFO.
3% drops for CrowdStrike at the opening despite also improving forecasts. The company forecasts fourth-quarter revenue of between $1.29 billion and $1.3 billioncompared to analyst estimates of $1.22 billion. For the year as a whole, the figure will be between 4,800 and 4,810 million dollars. In its third quarter, Crowdstrike posted revenue growth of 22% to $1.23 billion, compared to estimates of $1.22 billion.
After the close of regular trading, the accounts of Salesforce will also be known, which currently presents the lowest market value in its history since it went public in 2004. Its shares have accumulated a fall of 30% in the year, the second worst performance in the DOW JONES and among the 25 worst in the S&P 500.
In analyst recommendations, Deutsche Bank raises GE Vernova’s target price to $769 per share, from the previous $724, with an upside potential of 27.8% compared to Tuesday’s close. The upgrade comes just days before the company holds an investor event. “We believe that GEV will likely raise its 2025 guidance for both revenue and adjusted EBITDA margins«says analyst Nicole DeBlase in a note. «We’ve heard some criticism from investors about GEV’s decision to maintain its full-year guidance when reporting third-quarter 2025 results, but we believe management simply saved the increase for the December 9 event, at which time it will have a much clearer view of how the fourth quarter is shaping up.»
In raw materials markets, Oil prices await the outcome of peace talks between Russia and Ukraine on the risewhich could boost the supply of crude oil. European benchmark Brent oil rose 0.61% to $62.83 per barrel, while US West Texas futures rose 0.73% to $59.07.
The euro advances 0.29% against the dollar until leaving the exchange rate at 1.1660 dollars for each single currency.