The major averages opened mixed, with the Nasdaq outperforming thanks in large part to a quartet of big earnings beats from some of the biggest names in technology while the Dow was weighed down by post-earnings weakness in Merck (MRK) and Chevron (CVX). While the Nasdaq has tacked on gains to be up roughly 2% near noon, the Dow has crossed into the green but is still up just 0.2%. ECONOMIC EVENTS: In the U.S., the Commerce Department released its advance estimate of third-quarter gross domestic product, pegging GDP growth at 3.0% following the 3.1% pace in Q2. The University of Michigan revised down its consumer sentiment reading to 100.7 in the final October print, which is below the 101.1 preliminary October reading but up 5.6 points from a 95.1 reading in September. Additionally, press reports indicate that President Donald Trump is leaning toward Jay Powell as his selection as the next chairman of the Federal Reserve. COMPANY NEWS: The S&P 500 is being largely powered higher by technology companies, as Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN) and Intel (INTC) collectively account for about 8% of the weighting of the index and all four tech giants are rising after having reported strong results last night. Near noon, Amazon shares are up 12.5%, Class A shares of Alphabet are up 6%, and Microsoft and Intel have both advanced 7%… While tech is being powered higher by a handful of its biggest names, the two largest names in energy are not doing as well following their own earnings reports. Shares of Exxon Mobil (XOM) are fractionally higher after the company’s earnings and revenue topped expectations, while Chevron (CVX), whose earnings beat forecasts but revenue came in roughly in-line, is down 3.5%… Merck is also sliding, providing a headwind for the Dow. Shares of the drugmaker are down about 5% after its revenues were light compared to the consensus forecast, with the company noting its sales were unfavorably impacted by about $135M from lost sales in certain markets related to the cyber-attack. MAJOR MOVERS: Among notable companies up after earnings were AbbVie Industries (ABBV), which rose 3.5%, Shire (SHPG), which gained 2% and First Solar (FSLR), which jumped 20%. Some noteworthy losers after reporting earnings were Goodyear Tire (GT), which slid 6% and LyondellBasell (LYB), which fell 2.5%. JC Penney (JCP) also dropped 14% after cutting its FY17 guidance. INDEXES: Near midday, the Dow was up 39.22, or 0.17%, to 23,440.08, the Nasdaq was up 130.47, or 1.99%, to 6,687.24, and the S&P 500 was up 19.79, or 0.77%, to 2,580.19.
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