U.S. equities finished lower with the Dow whipsawing within a more than 900-point range following the Fed's monetary policy decision. The Central Bank raised rates by 75 basis points for a fourth-straight meeting, but opened the door to slowing within its statement. However, in his presser following the announcement, Chairman Powell reiterated that any notion of a pause was premature. Treasury yields were mixed and the U.S. dollar traded to the upside, while crude oil prices gained ground, and gold saw a modest loss. In economic news, mortgage applications fell for a sixth-straight week even as mortgage rates snapped a string of increases, and ADP's private sector employment report came in above estimates ahead of Friday's key labor report. Earnings season continued to roll on, with Advanced Micro Devices missing earnings forecasts, and CVS Health exceeding profit projections and raising its guidance. Ford Motor Company reported October sales that showed a year-over-year decline, but EV sales grew. Asia finished mixed with mainland Chinese markets and Hong Kong continuing rallies, while Europe also diverged amid some likely trepidation ahead of the Fed decision.
The Dow Jones Industrial Average fell 505 points (1.6%) to 32,148, the S&P 500 Index tumbled 96 points (2.5%) to 3,760, and the Nasdaq Composite plunged 366 points (3.4%) to 10,525. In moderate volume, 4.8 billion shares of NYSE-listed stocks were traded, and 5.3 billion shares changed hands on the Nasdaq. WTI crude oil gained $1.63 to $90.00 per barrel. Elsewhere, the gold spot price decreased $7.90 to $1,641.80 per ounce, and the Dollar Index was 0.4% higher at 111.97.
Advanced Micro Devices Inc. (AMD $59) reported adjusted Q3 earnings-per-share (EPS) of $0.67, below the $0.69 FactSet estimate, as revenues rose 29.0% year-over-year (y/y) to $5.6 billion, roughly in line with its guidance provided early in October. The chipmaker said its revenue growth was led by performance out of its data center, gaming, and embedded segments. AMD issued Q4 revenue guidance that was below estimates but noted that the profitable server chip market will continue to bolster its results. Shares were lower.
CVS Health Corporation (CVS $97) posted adjusted Q3 EPS of $2.09, topping the expected $2.00, with revenues rising 10.0% y/y to $81.2 billion, exceeding estimates of $76.7 billion. The company said including pre-tax opioid litigations charges and a $2.5 billion pre-tax loss on assets held for sale related to Omnicare long-term care business it booked a $2.60 per share loss. The company said it continues to execute on its strategy of focusing on expanding capabilities in health care delivery, and the announced acquisition of Signify Health will further strengthen its engagement with consumers. CVS raised its full-year earnings outlook and shares rose.
Ford Motor Company (F $13) reported total October vehicle sales were down 10.0% y/y to 158,327 units, but above the Street's forecast of 152,000 units. Truck and SUV sales were constrained by tight inventories and limited production, though it said its electric vehicle sales grew. Shares traded lower.