Wall Street gains ground amid steady flow of earnings reports, upbeat
economic updates
[November 06, 2025] By
DAMIAN J. TROISE
NEW YORK (AP) — Stocks gained ground on Wall Street Wednesday following
several upbeat economic updates and a steady flow of quarterly reports
from U.S. companies.
The gains were broad and marked a reversal from the prior day's dip.
Much of the market's push and pull came from the technology sector,
where several companies with huge values have an outsized influence over
the market.
Google’s parent, Alphabet, jumped 2.4%, Broadcom rose 2%, and Facebook
parent Meta Platforms rose 1.4%. They helped lead the way higher for the
broader market. Their gains also helped counter losses from a few
technology behemoths, including Nvidia and Microsoft.
Overall The S&P 500 rose 24.74 points, or 0.4% to 6,796.29. The Dow
Jones Industrial Average rose 225.76 points, or 0.5%, to 47,311. The
Nasdaq composite rose 151.16 points, or 0.6%, to 23,499.80.
Company earnings and forecasts were once again a big focus for Wall
Street, with results coming from a broad spectrum of industries.
McDonald’s rose 2.2% after reporting that its sales benefited from the
return of its popular Snack Wraps in the third quarter. International
Flavors & Fragrances jumped 4.1% after beating Wall Street's latest
quarterly profit forecasts.
On the losing side, Taser maker Axon Enterprise slumped 9.4% after
forecasting weaker profits than analysts were expecting. Live Nation
Entertainment fell 10.6% after its latest results fell short of
analysts' forecasts.
The latest round of earnings offers Wall Street a source of information
on consumers, businesses and the economy that is otherwise lacking amid
the government shutdown. Important monthly updates on inflation and
employment have ceased, leaving investors, economists and the Federal
Reserve without a fuller picture of the economy.
There are still several informative private economic updates that Wall
Street can review.
A monthly report from ADP showed that private payrolls rose more than
expected in October. The report offers a partial glimpse into the job
market, which has been generally weakening and raising broader concerns
about economic growth.
The services sector, which is the largest part of the U.S. economy,
expanded in October more than Wall Street expected, according to the
Institute for Supply Management. The report shows that while overall
business activity grew, employment was still contracting.
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Trader Robert Charmak works on the floor of the New York Stock
Exchange, Wednesday, Nov. 5, 2025. (AP Photo/Richard Drew)
 “The survey provides a reassuring
sign that economic growth persisted in October despite the
government shutdown,” Bill Adams, chief economist for Comerica Bank,
wrote in a note to investors.
A weaker job market remains a big concern for the Fed. The central
bank cut its benchmark rate for the second time this year at its
most recent meeting, in part to help bolster the economy amid a
weakening job market. Lower interest rates can make a wide range of
loans and credit less expensive, potentially promoting economic
growth. But, lower rates can also add fuel to inflation, which could
stunt economic growth.
Fed Chair Jerome Powell and several other Fed officials have
expressed concerns about more rate cuts, as inflation remains
stubbornly above the central bank's target of 2%. Consumer prices
rose 3% in September.
The mix of a weaker job market and hot inflation leaves the Fed in a
tough position.
“For Fed watchers, this ADP report should make it clear that a
December rate cut is now in play,” said Jamie Cox, managing partner
for Harris Financial Group, in a note to investors. “We are nearing
stall speed in the labor market, and that will get the Fed’s
attention.”
Wall Street has tempered its expectations for another interest rate
cut in December. Investors are now forecasting a 63% chance that the
Fed will cut interest rates, according to CME FedWatch. That's down
from a 90% chance just prior to the previous rate cut.
The threat of tariffs also continues to hang over consumers and
businesses. President Donald Trump's trade war with China, Canada
and many other nations has been unpredictable. The full impact of
higher prices is difficult to forecast because of constant shifts in
policy. The U.S. Supreme Court heard arguments Wednesday about the
legality of the sweeping tariffs.
Treasury yields rose in the bond market. The yield on the 10-year
Treasury rose to 4.16% from 4.09% late Tuesday. The yield on the
two-year Treasury rose to 3.63% from 3.58% late Tuesday.
European markets gained ground and Asian markets closed mostly
lower.
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