Chipmaker AMD Rises on Wall Street After Results
Advanced Micro Devices (AMD) moved 5.5 percent higher on the stock exchanges in New York on Wednesday. The American chip manufacturer saw its turnover rise sharply in the past quarter thanks to increased demand for chips for data centres and game computers.
However, the company is struggling with a weakening market for PCs.
Airbnb fell 5.7 percent. The home rental platform achieved record results last quarter because people booked many more overnight stays and outings after the corona measures were lifted. However, Airbnb expects growth to weaken somewhat in the fourth quarter. That news was bad for investors.
The stock market is also mainly dominated by the interest rate decision of the Federal Reserve. The US central bank is expected to raise interest rates another time by 0.75 percentage points to combat high inflation. Therefore, investors are curious about what central bank president Jerome Powell will say about the size of the interest rate hikes in the future.
Financial markets are hoping that the Fed will move to smaller rate hikes in the coming months. Payroll processor ADP, however, reported on Wednesday that the number of jobs in the US private sector increased more than expected in October. The official government jobs report will be released on Friday. A strong labour market gives the Fed more room to raise interest rates sharply.
Shortly after the start of trading, the Dow Jones index was 0.4 percent lower at 32,540 points. The broad S&P 500 fell 0.5 percent to 3,840 points, and the tech exchange Nasdaq lost 0.3 percent to 10,856 points.
Estée Lauder lost almost 6 percent. The cosmetics group made more profit than expected last quarter. However, expectations for the rest of the year were disappointing.
CVS Health climbed 4 percent on well-received quarterly earnings. The healthcare company also confirmed it had settled for some $5 billion in lawsuits over its role in the US opiate crisis.
Mondelez rose 2.5 percent. The company behind chocolate brands like Oreo, Milka, Cadbury and Toblerone raised its expectations for the entire year thanks to solid sales in the past quarter.
Yum! Brands won more than 1 percent. The owner of fast food chains such as Taco Bell, KFC and Pizza Hut recorded more sales than expected last quarter, but profits were somewhat disappointing.
Apple lost 0.4 percent. Chinese authorities announced a seven-day lockdown around Foxconn’s factory in Zhenzhou. The factory makes iPhones for Apple.