US close: Morgan Stanley leads markets higher, Dow hits new record

US equity markets rallied into the close on Wednesday with the Dow hitting a fresh record high as more forecast-beating earnings in the banking sector offset weakness among tech stocks.

The Dow finished 0.8% higher at 43,077.70, settling marginally higher than Monday's all-time high of 43,065.22. Meanwhile, the S&P 500 rose 0.5% while the Nasdaq edged 0.3% higher.

Morgan Stanley was making headlines after topping Street forecasts with third-quarter earnings, thanks to a better-than-expected investment banking performance. The bank was following in the footsteps of other economic bellwethers to impress with recent results, including Goldman Sachs, Bank of America and JPMorgan.

On the macro front, US mortgage applications fell by 17% in the week ended 11 October, according to the Mortgage Bankers Association of America, extending the prior week's 5.1% drop. Applications to refinance a mortgage plummeted 26%, while those to purchase a home were down 7% on the week.

In other news, the cost in the US of goods purchased overseas undershot economists' forecasts last month as the fuel prices plummeted. According to the US Department of Labor, the seasonally adjusted import price index dropped by 0.4% in September, after a 0.3% decline in August, coming in below the expected 0.1% decline.

Market movers

Shares in Morgan Stanley jumped nearly 7% after the banking giant posted a 32% jump in third-quarter earnings to $3.2bn . Chief executive Ted Pick said the company had a "strong third quarter in a constructive environment across our global footprint". Sector peers Goldman Sachs, JPMorgan and Bank of America were also performing well.

Abbott Laboratories also gained after lifting its full-year profit guidance on the back of solid medical device sales. Third-quarter sales topped analysts' estimates, rising 8.2% on an organic basis to $10.6bn.

United Airlines saw shares surge 12% after third-quarter earnings and sales beat market forecasts, as it unveiled a $1.5bn share buyback.

Meanwhile, biotech firm Novavax was a heavy faller, dropping 19% after the FDA paused the company's trial of its flu-Covid combination vaccine due to safety concerns.

Big-name tech stocks were trading broadly lower, including Apple, Alphabet, Microsoft and Amazon.com.

Dow Jones - Risers

Walgreens Boots Alliance, Inc. (WBA) $11.07 6.24%
Cisco Systems Inc. (CSCO) $56.38 4.25%
Visa Inc. (V) $287.51 2.94%
Unitedhealth Group Inc. (UNH) $571.40 2.72%
Walt Disney Co. (DIS) $96.71 2.64%
Nike Inc. (NKE) $83.96 2.25%
Boeing Co. (BA) $154.76 1.58%
American Express Co. (AXP) $281.61 1.55%
Goldman Sachs Group Inc. (GS) $530.13 1.48%
Caterpillar Inc. (CAT) $393.62 1.45%

Dow Jones - Fallers

Intel Corp. (INTC) $22.31 -1.54%
Amgen Inc. (AMGN) $321.63 -1.06%
Merck & Co. Inc. (MRK) $110.38 -1.03%
Apple Inc. (AAPL) $231.78 -0.89%
Procter & Gamble Co. (PG) $172.38 -0.69%
Microsoft Corp. (MSFT) $416.12 -0.63%
Walmart Inc. (WMT) $81.21 -0.53%
McDonald's Corp. (MCD) $312.84 -0.16%
Dowdupont Inc. (DWDP) $0.00 0.00%
Johnson & Johnson (JNJ) $164.29 0.12%

S&P 500 - Risers

United Airlines Holdings Inc (UAL) $72.02 12.44%
Fluor Corp. (FLR) $54.59 8.16%
American Airlines Group (AAL) $12.89 7.15%
Nektar Therapeutics (NKTR) $1.38 6.98%
Delta Airlines Inc. (DAL) $56.29 6.75%
Morgan Stanley (MS) $119.52 6.51%
Walgreens Boots Alliance, Inc. (WBA) $11.07 6.24%
Synchrony Financial (SYF) $56.52 6.06%
Universal Health Services Inc. (UHS) $236.94 5.15%
Dominion Energy Inc. (D) $60.54 5.09%

S&P 500 - Fallers

Agilent Technologies Inc. (A) $139.06 -3.82%
KLA-Tencor Corp. (KLAC) $682.59 -3.55%
Applied Materials Inc. (AMAT) $184.59 -3.37%
Revvity, Inc. (RVTY) $120.21 -3.34%
Mettler Toledo International (MTD) $1,404.96 -3.33%
Synopsys Inc. (SNPS) $501.35 -3.13%
Lam Research Corp. (LRCX) $74.14 -2.91%
Illumina Inc. (ILMN) $143.89 -2.52%
Citizens Financial Group, Inc. (CFG) $42.39 -2.51%
Cadence Design Systems Inc. (CDNS) $262.95 -2.42%

Nasdaq 100 - Risers

American Airlines Group (AAL) $12.89 7.15%
Walgreens Boots Alliance, Inc. (WBA) $11.07 6.24%
Micron Technology Inc. (MU) $109.24 4.72%
Cisco Systems Inc. (CSCO) $56.38 4.25%
J.B. Hunt Transport Services Inc. (JBHT) $180.15 3.15%
Nvidia Corp. (NVDA) $135.72 3.13%
Liberty Global plc Series A (LBTYA) $20.94 2.50%
Trip.com Group Limited (TCOM) $59.45 2.46%
Liberty Global plc Series C (LBTYK) $21.71 2.36%
Vodafone Group Plc ADS (VOD) $9.85 2.18%

Nasdaq 100 - Fallers

Asml Holdings N.V. (ASML) $683.52 -6.42%
KLA-Tencor Corp. (KLAC) $682.59 -3.55%
Applied Materials Inc. (AMAT) $184.59 -3.37%
Synopsys Inc. (SNPS) $501.35 -3.13%
Lam Research Corp. (LRCX) $74.14 -2.91%
Illumina Inc. (ILMN) $143.89 -2.52%
Cadence Design Systems Inc. (CDNS) $262.95 -2.42%
Idexx Laboratories Inc. (IDXX) $463.89 -2.12%
Workday, Inc. (WDAY) $240.22 -1.88%
Meta Platforms Inc. (META) $576.79 -1.62%