NEW YORK: Google parent Alphabet surged early Wednesday following strong earnings while the broader market edged lower after solid US economic data.
Shares of Alphabet climbed 6.7 percent after the company reported a hefty increase in revenues powered by strong performance from its advertising business and cloud services.
But the broader market retreated slightly.
About 10 minutes into trading, the broad-based S&P 500 crept down 0.1 percent to 5,824.77.
US stocks dip after mixed earnings
The Dow Jones Industrial Average dipped less than 0.1 percent to 42,217.22, while the tech-rich Nasdaq Composite Index slipped 0.1 percent to 18,700.31.
The US economy expanded at an annual rate of 2.8 percent in the July-September period, helped by consumption and government spending although slowing from the second quarter’s 3.0 percent pace, according to US data.
Meanwhile, private sector employment rose by 233,000 this month, payroll firm ADP said, easily topping analyst expectations in a further sign of the strong labor market.
Among individual companies, Caterpillar dropped 4.3 percent after reporting a four percent fall in revenues in the third quarter.
Super Micro slumped more than 30 percent as Ernst & Young resigned as accountants after raising questions about the company’s “commitment to integrity and ethical values,” according to a securities filling.
Super Micro is a provider of accelerated computing platforms whose customers include Nvidia and other chip companies.
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