Stocks got up from their intraday lows, but all three main indexes closed down a day before one of Wall Street’s most anticipated earnings reports. Government-collected economic data is flowing again. And markets will, of course, note the release of the minutes from the most recent Federal Open Market Committee meeting. But it only sets the stage for numbers and commentary from the leader of the AI revolution after Wednesday’s closing bell.
Five of the 11 S&P 500 sectors were down for the day, with declines for consumer discretionary, industrial, utility, financial and technology stocks dramatized by downgrades for big names in three of them. Major questions about the sustainability and the profitability of capex spending for new computing power continue to color this week’s price action. Worried about an AI bubble? So is Wall Street.
Meanwhile, the Census Bureau said factory orders increased 1.4%‌ month over month in August, in line with expectations, following a 1.3% decline in July. Orders were up 3.3% year over year. And the National Association of Home Builders Housing Market Index ticked up to 38 in November from 37 in October, but remains in contraction territory.
Interest rates and the next Fed meeting remain key issues for investors, traders and speculators with the August jobs report now set for release Thursday morning.
But the main event is on the earnings calendar. And it’s happening after tomorrow’s close.
At Tuesday’s closing bell, the tech-heavy Nasdaq Composite was down 1.2% at 22,432, the blue-chip Dow Jones Industrial Average had fallen 1.1% to 46,091, and the broad-based S&P 500 was off 0.8% at 6,617.
HON hit with double downgrade
Honeywell (HON) sank 2.4% after BofA Securities analyst Andrew Obin double downgraded the industrial stock to Underperform, or Sell, from Buy. Obin also reduced his 12-month target price on HON from $265 to $205.
Obin, who notes the conglomerate is separating into two businesses in the second half of 2026, Honeywell Aerospace and Honeywell Automation, says the company has fallen short with its plans for management as well as its earnings forecasts.
Dow Trims Its Loss to 425 Points: Stock Market Today
