Stocks rise as investors digest earnings and economic data; Nasdaq hits new record high

Charles Schwab expands 24-hour trading

54 minutes ago

Charles Schwab (SCHW) announced on Wednesday that it plans to expand its 24-hour trading and become the latest broker to cover markets around the clock.

Select Schwab customers can trade all S&P 500 and Nasdaq 100 stocks, as well as hundreds of exchange-traded funds (ETFs), any time Monday through Friday. The company will gradually expand the capability to all customers in 2025. Schwab customers can currently trade around two dozen ETFs overnight.

“Our goal has always been to offer and expand access to 24/5 trading in a responsible manner, taking into account customer demand and the evolving dynamics of the overnight trading market and, more importantly, providing customers with the full library of “To provide educational content from Schwab and 24-hour support to help them balance the opportunities, risks and special considerations of overnight trading,” James Kostulias, the company’s managing director and head of trading services, said in an explanation.

Brokers and exchanges alike have sought to capitalize on the U.S. stock market's extraordinary performance in recent years by pushing for an extension to 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, announced last week that it planned to expand trading on its digital platform to 22 hours a day, a decision that executives said “underscores the strength of our U.S. capital markets. “Growing global demand for our listed securities.”

–Colin Laidley

Super Micro Computer crashes when the examiner gives up

1 hour and 31 minutes ago

Shares of Super Micro Computer (SMCI) fell 30% on 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 that the decision was made “based on information that has recently come to our attention that has resulted in our discontinuing our involvement.” EY added that it was “not willing to be associated with the financial reports prepared by management.”

Super Micro Computer said it disagreed with EY's decision because the audit it hired EY to do last year had not yet been completed, and that it took seriously the accounting firm's concerns “as to whether the company has a commitment to shows integrity.”

The resignation comes as Super Micro Computer shares have plummeted in recent months amid speculation about the company's accounting practices after the company delayed filing its annual 10-K report and a report from short-seller Hindenburg Research that said ” Accounting manipulation” and other problems alleged have broken down.

Last month, reports surfaced that the Justice Department 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 company's resignation letter was “about as strongly worded as I've ever seen,” suggesting that EY's decision could lead to partners like Nvidia (NVDA) question future deals with Super Micro Computer.

–Aaron McDade

Eli Lilly Stock Plunges on Weak Earnings and Outlook

1 hour and 53 minutes ago

Shares of Eli Lilly (LLY) plunged more than 10% in early trading Wednesday after the company's third-quarter results fell well short of analysts' estimates and the company lowered its full-year forecast.

The pharmaceutical giant posted revenue of $11.44 billion – higher than last year's $9.50 billion but less than the $12.18 billion consensus estimate of analysts surveyed by Visible Alpha – as The weight loss drugs Mounjaro and Zepbound continue to boost Eli Lilly's sales. However, analysts expected higher sales of the blockbuster drugs.

Lilly posted a profit of $970.3 million, or $1.07 per share, but still well below the $1.69 billion and $1.87 per share expected by analysts. Adjusted earnings per share were $1.18, barely half the $2.18 expected.

Lilly lowered its 2024 earnings forecast to $12.05 to $12.55 from $15.10 to $15.60 and adjusted earnings per share to $13.02 to $16.10 to $16.60 $13.52. These were both due to acquired ongoing research and development expenses of $2.83 billion in the third quarter. Lilly also lowered its full-year revenue range cap to $46.0 billion from $46.6 billion.

Lilly and Danish rival Novo Nordisk (NVO), which has its own blockbuster drugs Ozempic and Wegovy, have spent billions on various acquisitions to boost production of their weight-loss drugs. Shares of Novo Nordisk were down about 2% early Wednesday.

Eli Lilly shares were at their lowest level since early August.

–Aaron McDade

Reddit levels to watch as stock rises 20% after earnings

3 hours and 27 minutes ago

Shares of Reddit (RDDT) rose 20% in premarket trading on Wednesday after the company reported earnings that beat estimates and offered a strong outlook as the social media platform benefited from robust digital advertising spending and lucrative licensing deals for AI content benefits.

Since going public in March, Reddit stock has fluctuated in an ascending triangle before breaking out above the pattern's upper trendline earlier this month.

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

During the retracements, investors should keep an eye on key support levels on the Reddit chart around $75 and $65.

–Timothy Smith

Stock index futures mixed but little changed

3 hours and 58 minutes ago

Futures tied to the Dow Jones Industrial Average fell 0.2%.

S&P 500 futures fell slightly.

Nasdaq 100 futures rose less than 0.1%.