Market Wrap
Published
The S&P 500 edged up 0.2%, a modest headline move that masked one of the more lopsided sessions of the quarter: Accenture's blowout earnings lit up the technology and services complex even as Corteva collapsed after fifteen states sued the company over its Vylor seed spinoff, with the Materials sector swinging between gains and losses depending on how heavily it was weighted toward the stock.
The macro backdrop tilted dovish. Fed Vice Chair Jefferson said policymakers may need more time before deciding on another move, and New York Fed President Williams said there was no urgency for a near-term hike. Jobless claims fell to their lowest level since July. Geopolitical risk stayed elevated: the Wall Street Journal reported the US is sending up to 10,000 more troops and a third aircraft carrier to the Middle East, Trump told aides he expects to resume bombing Iran by late November, and tankers were reported struck in the Strait of Hormuz, helping drive crude sharply higher alongside a reported Chinese suspension of oil exports.
Energy led sector gains, up 1.9%, with Marathon Petroleum up 6.0%, Valero up 4.9% and Occidental Petroleum up 4.4%. Technology rose 1.1%, propelled almost entirely by Accenture's 16.7% surge after its earnings beat, with Synopsys up 13.0%, CDW up 7.1%, EPAM Systems up 6.7% and Cadence Design up 6.4%. Industrials added 1.0% on broad strength from Boeing (+3.8%) to Caterpillar (+1.8%). Health Care was the weakest sector, down 1.3%, dragged by Repligen (-7.2%), Alnylam (-6.1%) and Danaher (-4.6%). Real Estate fell 0.5%, Financials were roughly flat with Hartford Financial up 2.8% against Citigroup down 1.9%, and Consumer Staples slipped 0.3%, with McCormick down 4.7% despite a quarterly earnings beat and reaffirmed full-year guidance.
Company News
- Accenture posted fiscal Q4 EPS of $3.29, topping estimates, with revenue of $18.68 billion versus $18.21 billion expected; it guided fiscal 2027 revenue growth of 3% to 6%, raised its dividend 5%, and added $6.0 billion to its buyback authorization.
- Mattel jumped after the Wall Street Journal reported Authentic Brands Group has been discussing a takeover offer that could value the toymaker above $20 a share, around $6 billion; Hasbro also rose on the report.
- Paramount Skydance fell even as it cleared a key hurdle: a twelve-state consent decree allows its Warner Bros. Discovery merger to close October 6, and Mattel's Ynon Kreiz was named Co-CEO of the combined company.
- Take-Two Interactive signed a new long-term Xbox publisher agreement with Microsoft.
- TTM Technologies closed its roughly $1.1 billion acquisition of EPIQ Design Solutions.
- Valaris and Transocean received DOJ antitrust clearance for their all-stock merger, now expected to close in the fourth quarter.
- BioMarin settled patent litigation with Ascendis Pharma in exchange for royalty payments through 2030.
- Lyft agreed to pay $272.5 million to settle a California driver-misclassification case.
- Nvidia and SoftBank each invested $10 billion in OpenAI's latest funding round, completing their combined $20 billion pledge.