Stock Market Update

[BRIEFING.COM] The major averages remain mixed at midday, with the DJIA (+0.5%) on the doorstep of a fresh record high, while the S&P 500 (-0.4%) and Nasdaq Composite (-1.0%) remain firmly lower. 

The communication services sector (-1.0%) trades lower today after its two mega-cap components posted earnings results yesterday afternoon, garnering vastly different price movements. 

Meta Platforms (META 666.00, -85.67, -11.40%) comfortably beat Q3 EPS and revenue expectations, posting its strongest revenue growth since 2021. However, a substantial $15.9 billion non-cash income tax charge weighed on GAAP EPS and the stock post-earnings. The company maintained in-line Q4 guidance, projecting steady ad growth but slower Reality Labs revenue as Quest headset demand was pulled forward. META also raised FY25 spending plans and warned of even heavier investments in AI and infrastructure next year.

Meanwhile, Alphabet (GOOG 286.91, +11.74, +4.27%) crushed Q3 EPS and revenue expectations with revenue growth accelerating to nearly 16%—its strongest pace since 1Q22—and for the first time surpassed the $100 billion quarterly revenue milestone. The robust results were powered by ongoing AI adoption, a resurgence in core ad businesses, and a major cloud acceleration, though management highlighted ongoing cost headwinds and expanded investment in proprietary silicon and data center infrastructure.