The Dow Jones Industrial Average rose to a record close on Wednesday, bouncing back from a sell-off in the previous session.

The blue-chip index gained 337.28 points, or 0.79%, and ended at 43,077.70. The S&P 500 added 0.47% to 5,842.47, while the Nasdaq Composite jumped 0.28% to close at 18,367.08.

Morgan Stanley rose 6.5% after topping Wall Street estimates for both its third-quarter earnings and revenue. United Airlines also reported better-than-expected results and forecast strong numbers for the fourth quarter, sending shares 12.4% higher.

The reporting period is off to a solid start. About 50 S&P 500 stocks have posted third-quarter earnings thus far, with 79% of those beating expectations, FactSet data shows.

The Dow and S&P 500 both slipped from their recent records on Tuesday, falling more than 0.7% each. The Nasdaq Composite lost 1%.

Despite this increased market volatility, CFRA Research chief investment strategist Sam Stovall still thinks equities could rise in the short term, especially when considering September's rally to new heights.

"Usually Septembers of election years are negative. However, if they're positive, then that also implies a positive October, as compared with the more normal negative October," he told CNBC. "In the final two months of election years, the market has risen almost every time with all sizes, styles and sectors posting positive returns. So investors are very much aware that the momentum is behind the market."

Still, Stovall did not take the possibility of a pullback off the table, since equities look so stretched at their current valuations. But the investor said any sell-off would most likely happen after the election and probably not until the new year.

"We might end up being vulnerable to some exogenous event that could cause a shakeout in equity prices," he added.

Dow rallies to new closing high

The Dow Jones Industrial Average rallied to a new record close Wednesday afternoon.

The 30-stock index gained 337.28 points, or 0.79%, settling at 43,077.70. The S&P 500 added 0.47% to close at 5,842.47, while the Nasdaq Composite climbed 0.28% and finished at 18,367.08.

— Lisa Kailai Han

UBS says to stay invested, despite stocks trading near all-time highs

Equities may be trading at their all-time highs, but UBS says this is no time to cash out.

"Our analysis of the past 60+ years shows that S&P 500 returns in the 3, 6, and 12 months following an all-time high are basically the same as all other periods," the firm wrote in a note to clients. "At the same time, we anticipate the macroeconomic and earnings environments to remain favorable, which supports staying invested in equities."

However, the bank believes economic growth will slow from here, thereby recommending investors stay selective and focused on "quality companies with strong balance sheets and consistent earnings." Many companies that meet this criteria are in the tech sector, UBS said.

— Lisa Kailai Han

Where stocks are heading into Wednesday's close

Here is where the major averages were trading, ahead of Wednesday's close:

• The S&P 500 was up 0.45%.
• The Dow Jones Industrial Average was up 0.74%.
• The Nasdaq Composite was up 0.30%.

— Lisa Kailai Han

Analysts finally begin lowering 2025 earnings growth rate, Strategas says

With the third-quarter earnings season fully underway, analysts have finally begun lowering the bar for their expectations, according to Strategas.

"The traditional EPS decay that S&P EPS typically undergo has largely been avoided for 2025 up until this point. However, analysts have finally begun to revise figures lower in tandem with revising 2024 figures lower as well. Current figures still reflect a nearly 15% growth rate for CY '25 on top of margin expectations to be the highest on record if these earnings figures come to fruition," said strategist Ryan Grabinski.

In the third quarter, Grabinski expects that technology stocks were the biggest contributor to earnings growth, while energy was the biggest detractor.

— Lisa Kailai Han

United Airlines, Morgan Stanley among the names making moves midday

Here are some stocks making big moves in midday trading:

• Novavax — Shares plunged more than 17% after the biotech company said the U.S. Food and Drug Administration put a clinical hold on its application for a Covid and influenza combination shot as well as a stand-alone flu vaccine.
• United Airlines — The stock soared 11% after the airline posted an earnings and revenue beat for the third quarter and guided for a strong fourth quarter. In addition, United said it is starting a $1.5 billion share buyback, its first since before the Covid-19 pandemic.
• Morgan Stanley — Shares popped 7% after the bank reported quarterly results that beat Wall Street's forecasts, boosted by higher profits from its wealth management, trading and investment banking divisions. The firm posted earnings of $1.88 per share, higher than the $1.58 expected by an LSEG analyst poll. Revenue was $15.38 billion versus the $14.41 billion consensus estimate.

Read here for the full list.

— Sean Conlon

Victoria's Secret shares pop after fashion show

Victoria's Secret shares jumped in Wednesday's session following the retailer's first fashion show in six years.

The stock popped more than 4%, lifting shares into positive territory on the year. With that move, shares are up more than 70% from the low seen earlier this year.

Wednesday's jump comes a day after the Ohio-based company held its iconic event in New York City. Victoria's Secret had canceled the show in 2019, before bringing back a filmed version last year, according to NBC News.

— Alex Harring, Adrian van Hauwermeiren

Small caps outperform

Small-cap stocks outperformed Wednesday, with the iShares Russell 2000 ETF (IWM) up 1.6% and on pace for a fourth straight day of gains. That's compared to the S&P 500's 0.3% rise.

Week to date, the IWM is higher by 2.4%, while the broad market index has gained 0.3%.

Small caps are showing signs of life after the Federal Reserve's big half-point rate cut in September bolstered investor sentiment in the asset class.

— Sarah Min

Piper Sandler says pullbacks can be viewed as good buying opportunities

Tuesday's sell-off was just a blip on the radar, according to Piper Sandler.

In a Wednesday note, the investment firm said weakness from the prior trading session would not ultimately impair the market's march higher.

"Yesterday's weakness does not change the intermediate and long-term uptrends, and we believe it will prove to be just a pullback within the context of a longer-term uptrend," Piper Sandler wrote. "October tends to be a month of 'backing and filling' but with generally a bullish undertone. We view pullbacks within the current uptrend as buying opportunities, particularly among leading SMID-cap stocks in the Industrial, Financial, and Technology sectors."

— Lisa Kailai Han

Walgreens heads for best week since 1987

Walgreens shares have been on a tear this week, soaring 17%. That gain puts the stock on track for its biggest one-week gain since December 1987.

The move comes after the company said Tuesday it would close 1,200 stores by 2027. Its fiscal fourth-quarter numbers also beat estimates.

— Fred Imbert

Dominion Energy jumps on agreement with Amazon to develop a small nuclear reactor

Dominion Energy shares jumped about 3% on Wednesday after the utility signed an agreement with Amazon Web Services to explore the development of a small modular nuclear reactor.

The agreement will look at developing a small reactor near Dominion's existing North Anna nuclear power station in Virginia, potentially bringing at least 300 megawatts to the grid. Dominion serves the world's largest data center hub in northern Virginia.

Small modular and micro reactor stocks also rose in sympathy on Wednesday. Oklo jumped 33%, NuScale Power soared about 35% and Nano Nuclear Energy jumped 13.5%.

— Spencer Kimball

Bank funds rally as earnings roll in

Two banking exchange-traded funds have climbed in recent days as investors parsed earnings reports from financial institutions.

The SPDR S&P Regional Banking ETF (KRE) has jumped more than 7% over the past five trading days, while the broader SPDR S&P Bank ETF (KBE) has added more than 6%. By comparison, the S&P 500 has risen less than 1% during the same period.

JPMorgan Chase and Wells Fargo reported earnings late last week. Bank of America, Goldman Sachs, Citigroup, Morgan Stanley and U.S. Bank have all posted financial results over the course of this week.

— Alex Harring

41 stocks in the S&P 500 trade at new 52-week highs

Forty-one stocks in the S&P 500 traded at new all-time highs Wednesday morning.

Tickers that hit this milestone included:

• T-Mobile US trading at all-time highs back to the MetroPCS initial public offering in April 2007
• Wells Fargo trading at levels not seen since February 2018
• Delta Air Lines trading at levels not seen since February 2020
• GE Vernova trading at all-time highs back to its spinoff from GE in April 2024
• Realty Income Corporation trading at levels not seen since August 2023
• Duke Energy trading at all-time-high levels back through our history to 1972
• Pentair trading at all-time highs back through our history to 1972
• Cisco trading at levels not seen since September 2023
• Newmont Mining trading at levels not seen since July 2022

— Lisa Kailai Han, Christopher Hayes

Bank of America says labor market will continue to soften despite strong September report

The strong September jobs report was enough to convince the Federal Reserve that it needed to readjust the pace of its interest rate reductions. But Bank of America is not convinced that this strength in the labor market is here to stay.

"The bottom line is that we don't think there was sufficient evidence to change our soft-landing outlook for the labor market," wrote U.S. economist Shruti Mishra. "Following the strong September employment report print, we revised our Fed call but made no change to our labor market outlook."

Mishra pointed to three reasons for her skepticism.

First of all, job growth was narrow, as the so-called "catch-up sectors" such as leisure, education and government roles made up most of the job increases in September. The month is also traditionally seasonally noisy due to schools restarting and summer jobs ending. Lastly, Mishra pointed out that the report only encompassed one month of data.

— Lisa Kailai Han

Piper Sandler designates Middle America as favorite 'emerging market'

Piper Sandler called Middle America its top "emerging market" in a Wednesday note due to the region's manufacturing and energy renaissances.

"Energy independence, relatively low corporate tax rates, and a no-longer-competitive China make the U.S. THE place to invest," wrote chief global economist Nancy Lazar. "Middle America is benefiting disproportionately, thanks to its cost advantages, and inbound investment/reshoring — creating jobs and depressing unemployment."

The region could be a particular beneficiary of goods producing, onshoring, construction and housing.

— Lisa Kailai Han

Gold is near session highs

Gold rose Wednesday, nearing session highs and approaching the intraday all-time-high level that it reached in September.

U.S. gold futures neared highs of the session at 2,701.2, nearing the intraday record of 2,708.7 from back in Sept. 26.

Exchange-traded funds tied to gold prices also rose. The VanEck Gold Miners ETF (GDX) gained 2.4%, headed for a fifth straight day of gains.

Shares of Harmony Gold and Gold Fields climbed 5.6% and 4.8%, respectively. Share of Hecla Mining added more than 3%.

— Sarah Min, Gina Francolla

Stocks open little changed

Stocks were little changed on Wednesday just after 9.30 a.m. ET. All three major indexes traded near the flatline.

— Lisa Kailai Han

Cisco, Morgan Stanley among stocks making biggest premarket moves

Check out the companies making headlines before the bell:

• Cisco Systems — The networking technology stock added nearly 2% on the heels of a Citi upgrade to buy from neutral. Citi said artificial intelligence can become a bigger part of the business over time.
• Novocure — Shares soared roughly 22% after the U.S. Food and Drug Administration approved Novocure's Optune Lua wearable treatment for metastatic non-small cell lung cancer.
• Morgan Stanley — Shares gained more than 3% after the bank reported quarterly results before the bell that beat Wall Street's forecasts, helped by higher-than-expected revenue from its wealth management, trading and investment banking operations. The firm's earnings came in at $1.88 per share, versus the $1.58 expected by an LSEG analyst poll. Revenue was $15.38 billion versus the $14.41 billion consensus estimate.

For the full list, read here.

— Pia Singh

Import prices fell more than expected in September on oil plunge

Prices on goods imported to the U.S. fell more than expected, primarily due to a drop in oil prices, the Labor Department reported Wednesday.

Import prices slid 0.4% on the month, more than the 0.2% decline in August and the Dow Jones estimate for -0.3%. Export prices also deflated, off 0.7% on the month after slipping 0.9% in August.

Prices on imported fuel tumbled 7% for the month, even more than the 2.9% in August. Excluding fuel, import prices actually increased 0.1% in September, up for the third straight month. However, imported food, feeds and beverage prices fell 1.5% as well.

— Jeff Cox

HSBC goes against consensus to predict near-term rally

In a note from Wednesday, HSBC said it was going against consensus to predict a near-term rally for the stock market.

Strategist Max Kettner wrote that while investors are bullish in the coming quarters, most are cautious in the short term due to seasonality and uncertainty around the U.S. presidential election.

"So we think the market may have got the order of the positioning the wrong way around. Low near-term US earnings expectations now set us up for a further squeeze higher in equities, in our view. Yet with this occurring, we are starting to become increasingly skeptical about a sizable post-election rally," he added. "Our view continues to be the exact opposite of the apparent current consensus: if we had to sum it up real quick, do the opposite of what worked in Q3."

— Lisa Kailai Han

Piper Sandler sees limited upside ahead for Disney

Piper Sandler initiated coverage of Walt Disney on Wednesday with a neutral rating and $95 price target, suggesting less than 1% upside from Tuesday's close.

The firm sees limited upside to estimates largely due to the moderation in Disney's experiences segment.

"Specifically, we believe the consumer-related slowdown within the parks business will likely persist for a few more quarters, and with experiences representing ~40% of segment operating income, we do not expect material upside," analyst Matt Farrell wrote in a note.

He also pointed to the company's lower profitability profile and its legacy linear television assets as additional factors weighing on the stock.

"Despite the near-term headwinds, we are believers in the Disney flywheel and the unique collection of assets in the industry, particularly following the recent film success," Farrell said.

Shares of Disney are up 4% year to date.

— Michelle Fox

Morgan Stanley rises 3% on earnings beat

Shares of Morgan Stanley rose 3% in Wednesday's premarket trading session after the bank beat analysts' estimates for both its third-quarter earnings and revenue.

Morgan Stanley posted earnings of $1.88 per share on revenue of $15.38 billion. This beat the per-shares earnings of $1.58 on revenue of $14.41 billion Wall Street had forecasted.

The bank follows peers such as JPMorgan Chase, Goldman Sachs and Citigroup, which have already reported and also topped expectations.

— Lisa Kailai Han

Loop Capital sees more upside for Netflix shares

Improving fundamentals could drive more upside for shares of Netflix, according to Loop Capital.

Analyst Alan Gould upped the firm's price target on the streaming company to $800 from $750 a share, citing its superior position in the sector. The new target reflects 13% upside from Tuesday's close.

To be sure, Gould noted that shares have outperformed the S&P 500 by rallying 45% and look expensive at 30 times 2025 EPS estimates.

"But NFLX's dominant position in the streaming business continues to grow," he wrote. "We anticipate further consolidation of the traditional studios and are seeing more rationale pricing which should lead to a more profitable industry environment."

Gould also lifted third-quarter subscriber and revenue estimates to reflect solid viewership trends. He also anticipates a potential standard tier price increase ahead of full content slate that includes "Squid Games 2" in December. Looking ahead, he also anticipated double-digit revenue growth and 20% compounded EPS growth over the next five years.

"The ad tier is progressing slower than we originally anticipated, but given NFLX's viewership and our anticipation of more sports programming, we are confident that it will become a major contributor over the next few years," he said.

— Samantha Subin

Morgan Stanley lifts price target on Starbucks, cites turnaround potential

Despite some near-term headwinds, Morgan Stanley sees a "more bullish" setup for Starbucks in 2026 and beyond.

Given this outlook, analyst Brian Harbour upped the firm's price target to $115 from $98 a share, reflecting 21% upside from Tuesday's close.

"Durable growth story with leading scale, [near-term] headwinds create attractive entry," he wrote.

Starbucks shares have struggled in recent years, falling more than 3% in 2023 and 1% year to date. The coffee company has grappled with a slow China recovery, declines in same-store sales and a sluggish product pipeline. But a new CEO has given investors something to get more bullish on, with former Chipotle Mexican Grill CEO Brian Niccol taking the helm of the company last month.

Although the company may refrain from offering up, Harbour views the company's upcoming fourth-quarter results as a potential "reset" opportunity. Comments from Niccol, managements shifts and reports of a downtick in discounting also provide an early look into the changes ahead, he wrote.

"Early signs of what's to come matter though," he said "We mark down '25, with a range of outcomes possible, but stay OW on multi-year opportunity."

— Samantha Subin

Chip makers and luxury stocks the major laggards in Europe today

Europe's major bourses were trading broadly lower Wednesday with chip stocks and luxury goods among the worst performing sectors following sales warnings.

The pan-European Stoxx 600 index was 0.4% lower by mid-morning local time, with European chip stocks among the biggest laggards on the index after Dutch semiconductor equipment maker ASML posted disappointing sales forecasts late Tuesday.

European luxury stocks were also among the index's worst performers after luxury group LVMH, the owner of Louis Vuitton and Moët Hennessy and a range of other high-end brands, saw a drop in third quarter sales.

The U.K.'s FTSE 100 was an outlier among European markets, up 0.6% after the latest U.K. data showed the inflation rate dropped sharply to 1.7% in September, according to the Office for National Statistics.

The steep fall from the 2.2% print seen in August adds to expectations that the Bank of England will cut rates in November.

— Holly Ellyatt

Citi names J.B. Hunt Transport a top pick

Citi named J.B. Hunt Transport Services a top pick on the heels of a strong third-quarter report.

"We were most encouraged by management's view that rates are likely to move higher – an argument that has been central to our sector thesis, with JBHT among our top picks," wrote analyst Ariel Rosa.

He lifted the firm's target to $204 from $201 a share, reflecting 17% upside from Tuesday's close. Shares have slumped 12.6% since the start of 2024.

The stock popped 7% in the premarket after reporting quarterly results after the bell Tuesday that surpassed estimates on the top and bottom lines. The freight shipping company also indicated strong demand for its intermodal service during the period, which rose more than 5% year over year.

While the print "assuages worst fears" that J.B. Hunt is overextending its capacity, Rosa refrained from updating fourth-quarter EPS estimates.

"While we acknowledge a relatively good quarter from JBHT, we are hesitant to significantly boost estimates given the 3Q pull-forward of volume," he wrote.

— Samantha Subin

Bank of America cuts price target on ASML Holding after 'sobering update'

A disappointing 2025 guidance cut from ASML Holding is leading Bank of America to update its price target on the semiconductor equipment company.

Analyst Didier Scemama trimmed his target on U.S.-listed share to $939 from $1149, reflecting 29% from Tuesday's close. The stock fell more than 4% before the bell, and looked poised to build on a 3.5% year-to-date loss.

Shares plunged 16% Tuesday after ASML issued a weaker-than-expected sales forecast in a day-early third-quarter earnings release. The firm cites a "more gradual" recovery in segments beyond AI such as China.

"Multiple pushouts lead to big reset for 2025," Scemama wrote, adding that attention now turns to an anticipated recovery in 2026 with 20% revenue growth.

He referred to the report as a "sobering update," adjusting EPS and revenue estimates downward for 2025 and 2026.

— Samantha Subin

Japan's Nikkei leads declines in Asia-Pacific markets as investors await key China briefing

SINGAPORE — Asia-Pacific markets traded lower on Wednesday, as investors await a high-level press briefing by China's housing authorities on Thursday.

Mainland China's CSI 300 slipped 0.63% to close at 3,831.59. Hong Kong's Hang Seng index inched 0.3% higher during a choppy session.

Australia's S&P/ASX 200 dropped 0.41% to 8,284.7. Japan's Nikkei 225 fell 1.83% to close at 39,180.3.

The Taiwan Weighted index lost 1.21% to finish at 23,010.98, dragged down by technology sector.

South Korea's Kospi fell 0.88% end at 2,610.36 while the small-cap Kosdaq dropped 1.04% to 765.79.

— Anniek Bao

United Airlines announces $1.5 billion stock buyback

United Airlines unveiled a new stock buyback program as part of its third-quarter report. The $1.5 billion plan marks the first time the airline has repurchased its shares since before the Covid-19 pandemic.

United also beat earnings estimates for the quarter, reporting $3.33 in adjusted earnings per share. Analysts surveyed by LSEG were expecting $3.17.

Still, shares of the airline dipped slightly in extended trading. Check out more after hours movers here.

— Jesse Pound

Chip stocks were the biggest culprits in the Nasdaq 100’s decline Tuesday

The Nasdaq 100 tumbled 1.37% on Tuesday, and semiconductors were some of the biggest contributors to the index's slide.

Nine out of the top 10 stocks with the most negative point impact on the Nasdaq 100 were chip names. Nvidia's 4.7% drop accounted for nearly 75 points on the index. Broadcom came in second place, with a roughly 3.5% loss and a 37.37-point impact. Applied Materials rounded out the top three: Shares fell 10.7%, accounting for more than 22 points on the Nasdaq 100.

KLA Corp, Advanced Micro Devices, ASML, Lam Research, Texas Instruments and Analog Devices also played key parts in the index's loss.

—Darla Mercado, Gina Francolla

Equity futures open little changed

Stock futures saw only modest movement when trading opened at 6 p.m. in New York. All three major contracts were within 0.1% of the flat line.

— Jesse Pound