Gold Hits Record High as Investors Brace for Stocks Volatility

17 minutes ago

Gold futures (GC1!) hit a new all-time high Wednesday, briefly surging past $2,800 for the first time as investors rush to the precious metal as a safe-haven investment amid uncertainty around next week’s U.S. presidential election next and simmering geopolitical tensions.

Eclipsing an all-time high set just yesterday, gold futures surged to $2,801.70 in early trading before giving up some of those gains. That makes gold one of the best-performing commodities year-to-date, up roughly 35% and handily outpacing the S&P 500's 22% gains.

Gold is traditionally seen as a safe-haven asset when you expect stock market turbulence or as a hedge against inflation. Many Americans worry about how the outcome of next week’s presidential election could affect the equities markets, the economy, and their personal finances.

"Uncertainty ahead of the US election next week has also supported gold’s record-breaking rally this year, and we believe it will continue to add to gold’s upward momentum. Expect more volatility in the days to come, as uncertainty around future US policies likely leads to a flight into safe havens," ING analysts wrote Wednesday.

Gold buying by central banks, especially in China, propped up prices throughout the year as retail investors shied away from gold exchange-traded funds (ETFs).

In recent months, retail investors not only poured billions into gold ETFs but also purchased gold bars at their neighborhood Costco (COST), as uncertainty grew around when the Federal Reserve would cut interest rates, the possibility that the U.S. would enter a recession, and rising tensions in the Middle East.

–Mrinalini Krishna

Why Wall Street is Bullish on Google After Earnings

35 minutes ago

Shares of Alphabet (GOOGL) were up 5% in afternoon trading, leading Nasdaq Composite gainers, after the Google parent late yesterday posted third-quarter earnings that topped Street expectations and showed artificial intelligence (AI) progress.

JPMorgan raised its price target for Alphabet to $212 from $208 and reiterated an "overweight" rating. The stock was trading around $178 recently.

Analysts at the firm noted "Google's increased confidence" in the rollout of its AI search business; its strong cloud business, with 35% year-over-year revenue growth in the quarter; and upside for operating profits given the company's plans to "re-engineer the cost structure" as reasons behind the increased price target.

On the company’s earnings call, Alphabet Chief Executive Officer (CEO) Sundar Pichai said the company has seen use of Google Search rise among people who use AI Overviews, and that Google Lens is drawing 20 billion visual searches each month.

Citi analysts stuck with their “buy” rating and $212 price target for Alphabet. The broker, like JPMorgan, noted Google Cloud’s “accelerating growth from greater GenAI demand,” thanks in part to Alphabet’s Gemini large language model.

Alphabet shares have gained 27% since the start of 2024, slightly outpacing the Nasdaq Composite's year-to-date gain.

–Andrew Kessel

Charles Schwab to Expand 24-Hour Trading

2 hr 18 min ago

Charles Schwab (SCHW) on Wednesday announced that it plans to expand its 24-hour trading, becoming the latest brokerage to embrace round-the-clock markets.

Select Schwab clients will be able to trade all S&P 500 and Nasdaq-100 stocks, as well as hundreds of exchange-traded funds (ETFs), at any time Monday through Friday. The firm will gradually extend the capability to all clients in 2025. Schwab clients currently can trade about two dozen ETFs in the overnight session.

“Our goal has always been to offer and expand access to 24/5 trading in a responsible way that takes into account client demand, the evolving dynamics of the overnight trading market, and – importantly – providing clients with the full library of Schwab’s educational content and 24-hour support to help them balance the opportunities and risks, as well as the unique considerations of overnight trading,” said James Kostulias, the firm's managing director and head of trading services, in a statement. 

Brokerages and exchanges alike have sought in recent years to capitalize on the U.S. stock market’s exceptional performance by pushing to extend the trading day. Robinhood (HOOD) launched its 24 Hour Market last year, and has since expanded the list of stocks and ETFs that investors can trade in the middle of the night. 

Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, said last week that it planned to extend trading on its digital platform to 22 hours a day, a decision that executives say “underscores the strength of our U.S. capital markets and growing demand for our listed securities around the world.”

–Colin Laidley

Super Micro Computer Tumbles as Auditor Quits

2 hr 55 min ago

Super Micro Computer (SMCI) shares were down 30% Wednesday morning after accounting firm EY resigned as the company’s auditor following months of speculation about the company’s accounting practices.

EY, one of the country’s “Big Four” accounting firms, told Super Micro Computer’s board the decision comes “due to information that has recently come to our attention which has led us to no longer be able to rely on management’s and the Audit Committee’s representations.” EY added it is “unwilling to be associated with the financial statements prepared by management.”

Super Micro Computer said it disagreed with EY's decision, as the audit it hired EY last year to complete isn't done yet, and that it takes the concerns the accounting firm raised about "whether the Company demonstrates a commitment to integrity" seriously.

The resignation comes as Super Micro Computer’s stock has tumbled in recent months amid speculation about its accounting practices after it delayed the filing of its annual 10-K and a report from short seller Hindenburg Research alleging “accounting manipulation” and other issues.

Last month, reports emerged that the Department of Justice had opened an investigation into Super Micro Computer’s accounting practices following the Hindenburg report.

Following EY’s resignation, Hindenburg founder Nate Anderson said the firm’s letter of resignation is “about as strongly worded as I have seen,” and suggested EY’s decision could make partners like Nvidia (NVDA) question doing business with Super Micro Computer going forward.

–Aaron McDade

Eli Lilly Stock Plunges on Weak Earnings and Outlook

3 hr 16 min ago

Eli Lilly (LLY) shares tumbled more than 10% in early trading Wednesday after the company’s third-quarter results fell well short of analysts’ estimates and it lowered its full-year guidance.

The pharmaceutical giant registered $11.44 billion in revenue—above last year’s $9.50 billion but below the $12.18 billion consensus estimate of analysts polled by Visible Alpha—as weight-loss drugs Mounjaro and Zepbound continue to boost Eli Lilly’s sales. However, analysts were looking for greater sales of the blockbuster drugs.

Lilly swung to a profit of $970.3 million, or $1.07 per share, but still well below the $1.69 billion and $1.87 per share analysts were looking for. Adjusted EPS of $1.18 was barely half of the $2.18 expected.

Lilly lowered its 2024 earnings per share guidance to a range of $12.05 to $12.55 from $15.10 to $15.60, and adjusted EPS to $13.02 to $13.52 from $16.10 to $16.60. These were both driven by the $2.83 billion acquired in-progress research and development charges incurred in Q3. Lilly also lowered the top of its full-year revenue range to $46.0 billion from $46.6 billion.

Lilly and Danish rival Novo Nordisk (NVO)—which has its own blockbuster drugs in Ozempic and Wegovy—have spent billions on a variety of acquisitions to help ramp up production of their weight-loss medications. Novo Nordisk shares were down about 2% early Wednesday.

Eli Lilly shares were trading at their lowest levels since early August.

–Aaron McDade

Reddit Levels to Watch as Stock Jumps 20% After Earnings

4 hr 50 min ago

Reddit (RDDT) shares surged 20% in premarket trading on Wednesday after the company reported earnings that topped estimates and provided a strong outlook, as the social media platform benefits from robust digital advertising spending and lucrative AI content licensing deals.

Since going public in March, Reddit shares oscillated within an ascending triangle before breaking out above the pattern’s top trendline earlier this month.

The measuring principle, which calculates the distance between the ascending triangle’s two trendlines and adds that amount to the breakout point, projects an upside target in the stock of $115. The stock was at around $100 in recent premarket trading.

During retracements, investors should monitor important support levels on Reddit's chart around $75 and $65.

–Timothy Smith

Stock Index Futures Mixed But Little Changed

5 hr 22 min ago

Futures tied to the Dow Jones Industrial Average were down 0.2%.

S&P 500 futures were down fractionally.

Nasdaq 100 futures were up less than 0.1%.

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