This article first appeared on GuruFocus.
U.S. equity markets were mixed on Wednesday as investors weighed soft labor data against earnings reports from key companies.
The S&P 500 hovered near flat, while the Dow Jones Industrial Average rose 0.7% or 350 points, and the Nasdaq Composite slipped 1%. Technology stocks remained under pressure as investors rotated into cyclical and value-oriented names.
Advanced Micro Devices (NASDAQ:AMD) shares fell 14% after its first-quarter revenue forecast came in below some analyst expectations. Broadcom (NASDAQ:AVGO) and Micron Technology (MU) also declined, down 3% and 8%, respectively. Software stocks including Oracle (NYSE:ORCL) and CrowdStrike (NASDAQ:CRWD) extended recent losses.
Meanwhile, biotechnology firm Amgen (AMGN) surged 6% after reporting better-than-expected earnings and revenue for the fourth quarter. Industrial giant Caterpillar (NYSE:CAT) added 1%, reflecting investor interest in value and cyclical sectors.
ADP reported private payroll growth of just 22,000 in January, below the 45,000 expected, signaling a sluggish labor market as the nonfarm payroll report was delayed by a partial government shutdown that ended this week.
Investors are now focused on Alphabet (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN), which are set to report earnings later this week, while the broader market navigates tech weakness and cautious sentiment.
