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Afternoon Note

ASML Weighs on Chip Stocks

By Karina Hernandez, Senior Research Analyst
10/15/2024 1:32 PM

Today, the only major index in the green is the Russell 2000, up 0.84%, while the biggest loser was the Nasdaq Composite, down 0.7%.

Seven of eleven sectors are in the green today, the best performing sector is Real Estate (XLRE), up 1.82%, as yields slide. Financials (XLF) is the second best sector, up 1.14%, as more banks reported positive results. The worst performing sector is Energy (XLE), down 2.24%. Technology (XLK) is down 1.79%, partially because of Dutch giant ASML Holding N.V. (ASML) disappointing earnings and news that the U.S. was considering further export caps.

ASML Holding N.V. (ASML) accidentally released their earnings today. The results beat consensus on revenue by 3.11% and earnings by 6.55%, while their FY’25 midpoint revenue guidance got slashed by 17.5% to €32.5B from €40B, missing estimates of €36.35B.

The CEO, Christophe Fouquet, stated this clearly, "While there continue to be strong developments and upside potential in [artificial intelligence], other market segments are taking longer to recover. It now appears the recovery is more gradual than previously expected."

The news impacted other semiconductors as well.

On the economic front. Consumer spending expectation gently cooling off, showing polarization amongst households.

Debt delinquency expectations rose to their highest level since 2017. Families at the lower end of the income group are more concerned about making minimum debt payments over the next 3 months. 


 

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