Why Did Apple Dip Before Its Quarterly Report?
Apple closed down 1.5% ahead of its quarterly report. The S&P 500 ended 0.51% lower at 7,541.40 points.
After the closing bell, Apple beat expectations. Early demand for the iPhone 18 Pro lineup and price increases helped offset rising memory-chip costs.
The shares were close to flat after the report.
Where Did the S&P 500, Nasdaq and Dow Close?
The Nasdaq dropped 1.07% to 25,164.32 points, while the Dow Jones Industrial Average rose 0.41% to 51,983.98 points.
Seven of the 11 S&P 500 sector indexes rose. Consumer discretionary led with a 2.25% gain, followed by materials at 1.83%, while the energy index fell 4%.
Longer-dated US Treasury yields moved lower, and Brent crude fell as Iran indicated it was open to peace talks. The talks follow eight months of war in the Middle East that kept energy prices elevated and stoked inflation.
Amazon rallied 2.2%, while Tesla climbed 1%. Advancing issues outnumbered falling ones within the S&P 500 by a 2.2-to-one ratio.
The S&P 500 posted 35 new highs and one new low. The Nasdaq recorded 112 new highs and 323 new lows.
Volume reached 18.8 billion shares, above the 17.3 billion average over the previous 20 sessions.
Why Did Oracle, Marvell and Intel Fall?
Oracle dropped almost 9% after filings showed plans to raise US$20 billion through a debt and share sale. The move highlights concern that debt-funded spending could become harder to justify as borrowing costs rise.
Marvell Technology tumbled 13% after agreeing to buy optical components maker Lumentum in a US$115 billion all-stock deal, including debt. Lumentum dropped 18.6%.
Intel fell 8.8%, adding to a 29% drop on Friday. The chipmaker forecast quarterly revenue below market estimates and said it did not expect positive cash flow this year.
Is AI Spending Outpacing Cash Generation?
The Nasdaq fell 5.3% in October after a Friday selloff over worries that massive AI infrastructure spending is outpacing near-term cash generation.
Jake Dollarhide, chief executive of Longbow Asset Management in Tulsa, Oklahoma, said investors remain concerned about the pace of AI spending. “Companies have to realise there’s a limit to how much they spend and what it means in terms of enhanced shareholder value. At some point, there is no additional value-add, just expense,” Dollarhide said.
For a wider view of AI-linked stocks, read AI Stock Analysis for Malaysians.
How Strong Are S&P 500 Earnings and Valuation?
S&P 500 third-quarter earnings are on track to climb over 30% year-over-year, with AI heavyweights accounting for much of that jump, according to LSEG data.
Following Wall Street’s recent decline, the S&P 500 is valued at about 19 times expected earnings. That is its lowest valuation since 2023.
Polls suggest Democrats are likely to win the House of Representatives in the US midterm elections on Tuesday. The Senate outcome is less clear.
Republicans controlled both chambers of Congress during the first two years of Trump’s latest term. US manufacturing activity also picked up in October amid solid domestic demand.
Which US Stocks Are Worth Monitoring Next?
- Apple: iPhone 18 Pro demand and price increases against rising memory-chip costs.
- Oracle: the US$20 billion debt and share sale and its effect on borrowing costs.
- Anthropic: its amended IPO filing showed a sharply narrower Q3 net loss and a jump in revenue ahead of a potential listing. Read more in IPO Investing with M+ Global.
- Palantir and AMD: shares fell 3.1% and 7.5% ahead of their quarterly reports.
What Does This Mean for Malaysian Investors?
None of the stocks cited in this report is listed on Bursa Malaysia. Malaysian investors holding US-listed shares should track these same Apple, Oracle and Intel figures directly.
Key Takeaways
- The S&P 500 closed 0.51% lower at 7,541.40 points, and the Nasdaq dropped 1.07% to 25,164.32 points.
- Apple closed down 1.5% before its report, then beat expectations on iPhone 18 Pro demand.
- Oracle dropped almost 9% on its US$20 billion debt and share sale, while Marvell tumbled 13% on its US$115 billion Lumentum deal.
- The S&P 500 trades at about 19 times expected earnings, its lowest valuation since 2023.
This article is for information only and is not financial advice. Do your own research before making any investment decision, and speak to a licensed adviser where needed.
Frequently Asked Questions
Why did Apple stock fall before its quarterly report?
Apple closed down 1.5% ahead of its quarterly report. After the closing bell, the company beat expectations on early iPhone 18 Pro demand and price increases that offset rising memory-chip costs.
Where did the S&P 500 close?
The S&P 500 declined 0.51% to end at 7,541.40 points. The Nasdaq dropped 1.07% to 25,164.32 points, while the Dow rose 0.41% to 51,983.98 points.
Why did Oracle shares drop almost 9%?
Oracle dropped almost 9% after filings showed it plans to raise US$20 billion through a debt and share sale. The move highlights concern that debt-funded spending could become harder to justify as borrowing costs rise.
What is the S&P 500 valuation right now?
The S&P 500 is valued at about 19 times expected earnings, its lowest valuation since 2023. LSEG data shows third-quarter earnings are on track to climb over 30% year-over-year.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
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