Nasdaq falls 3.0% in a week as chip selloff hits CoreWeave and Micron
TSMC guided fourth-quarter revenue to $52.3 billion to $54.3 billion on Oct. 15, while Strategy lost more than 9% on Oct. 16 over MSCI index rules.
- The Nasdaq Composite closed at 26,430 on Oct. 19, down 3.0% from Oct. 12, our calculation; the S&P 500 fell 1.5%.
- Taiwan Semiconductor reported third-quarter revenue of $46.72 billion on Oct. 15 and a gross margin of 66.4%.
- Meta Platforms and Tesla report on Oct. 21 after the close; MSCI publishes its removal list on Nov. 11.
The Nasdaq Composite closed at 26,430 on Oct. 19, down 3.0% from Oct. 12, after a chip selloff that Schwab said cut the PHLX Semiconductor Index 11% in the week to Oct. 16, even as TSMC guided to higher sales.
The Nasdaq loses 3.0% and the S&P 500 1.5% while the Dow edges up 0.2%
The S&P 500 closed at 7,690 on Oct. 19, according to Investrade's market review, against 7,807.24 on Oct. 12, according to the index closes for Oct. 12. That is a 1.5% decline, our calculation: 7,690 / 7,807.24 - 1.
The Nasdaq Composite fell 3.0% over the same span, from 27,245.90 to 26,430, our calculation. The Dow Jones Industrial Average rose 0.2%, from 51,850.55 to 51,966, our calculation.
Most of the damage came on Oct. 16, when the Nasdaq fell 2.1% to 26,140.03 and the S&P 500 fell 1.1% to 7,659.44, according to the index closes for Oct. 16.
Measured from Oct. 9, the losses were larger. The Nasdaq lost 4.5% and the S&P 500 2.0% in the week to Oct. 16, while the Dow gained 0.7%, Yahoo Finance reported.
TSMC guides fourth-quarter revenue to $52.3 billion to $54.3 billion
Taiwan Semiconductor Manufacturing (NYSE: TSM) said on Oct. 15 that third-quarter revenue was NT$1,494.24 billion, or $46.72 billion, with a gross margin of 66.4%, according to its results release.
Net income was NT$763.06 billion, and diluted earnings per ADR unit were $4.60. TSMC said the board has not yet approved the figures, according to its Form 6-K filing.
TSMC guided fourth-quarter revenue to $52.3 billion to $54.3 billion at an exchange rate of NT$31.8 to the dollar. The $53.3 billion midpoint is 14.1% above the third quarter, our calculation: 53.3 / 46.72 - 1.
The guidance came during a rout in chip shares. Semiconductor shares fell eight straight days, the longest stretch in 16 years, according to Schwab's market update.
CoreWeave drops 25.21% in the week as its debt costs climb
CoreWeave (NASDAQ: CRWV) fell 11.91% to $61.39 on Oct. 16, a 25.21% loss for the week, according to TradingKey's close report.
Its 2032 notes yielded about 14% and its 2031 notes above 16%, TradingKey reported. The five-year credit default swap closed at 1,117 basis points, and total debt exceeds $51 billion.
The shares rose 6.12% on Oct. 19 after Goldman Sachs upgraded the stock to buy, according to TheStreet's close update. Investrade said the shares are down 43% since Aug. 11.
Micron fell 5.63% on Oct. 16, and the PHLX Semiconductor Index lost 3.83% to 11,137.29 with all 30 constituents lower, TradingKey reported.
Strategy falls more than 9% as MSCI adopts its non-operating company screen
Strategy (NASDAQ: MSTR) lost more than 9% on Oct. 16, according to Schwab, a day after MSCI adopted eligibility rules for "non-operating companies", The Block reported.
Companies that fail at least four of five financial tests could be ineligible, according to Cointelegraph. Current constituents leave only if they fail in each of their two most recent annual filings, The Block reported.
MSCI will publish the list of affected companies on Nov. 11, with removals effective Nov. 30, Cointelegraph reported. No company has been removed yet.
Funds that track MSCI hold about 13 million Strategy shares, or 3.1% of basic shares outstanding, which Strategy said is less than one day's trading volume, Cointelegraph reported.
Tech bounces on Oct. 19 as Amazon gains 4.95% and Tesla 3.74%
The Nasdaq rose 1.1% and the S&P 500 0.41% on Oct. 19, while the Dow slipped 0.07%, according to TheStreet.
Amazon rose 4.95%, Palantir 4.36%, Tesla 3.74% and Micron 2.95%, TheStreet reported. Meta fell 0.54% and Apple 0.14%.
TheStreet tied the bounce to easing Treasury yields and a Nvidia announcement on memory and technology standardization. The Nasdaq still closed below its Oct. 12 level.
The week in numbers
| Index or company | Close | Week change | Source |
|---|---|---|---|
| S&P 500 | 7,690 | -1.5% our calculation | Investrade |
| Nasdaq Composite | 26,430 | -3.0% our calculation | Investrade |
| Dow Jones Industrial Average | 51,966 | +0.2% our calculation | Investrade |
| PHLX Semiconductor Index | 11,137.29 | -11% per Schwab | Schwab |
| CoreWeave | $61.39 | -25.21% per TradingKey | TradingKey |
As of Oct. 19 closes for the indexes and Oct. 16 closes for the other two. Index week change is our calculation from the Oct. 12 and Oct. 19 closes; the other two are the week to Oct. 16.
Netflix, Meta and Tesla report before MSCI publishes its list on Nov. 11
- Oct. 20: GE Aerospace, RTX, 3M, General Motors and Northrop Grumman report before the open and Netflix after the close, according to StockTitan's earnings calendar.
- Oct. 21: Meta Platforms and Tesla report after the close, StockTitan said.
- Oct. 22: Procter & Gamble, Union Pacific and Lockheed Martin report before the open, StockTitan said.
- Nov. 11: MSCI publishes the companies it will remove, with removals effective Nov. 30, per Cointelegraph.
How we reported this: Index closes and TSMC figures come from the linked reports, release and SEC filing. Weekly index changes are our calculation from the Oct. 12 and Oct. 19 closes. Individual share moves rest on one report each.
Source: pr.tsmc.com