The three major U.S. stock indices each slipped on Wednesday, as the first results of earnings season began trickling in. With November elections now right around the corner, some volatility is to be expected in the coming weeks, and Wall Street will keep a close eye on stimulus talks, which still seem unlikely to yield a second relief package before the election.
The Dow Jones Industrial Average lost 165 points, nearly 0.6%, to finish at 28,514.
Big week for big banks. Financials were squarely in the spotlight on Wednesday, as the market reacted to the latest quarterly earnings from Goldman Sachs (ticker: GS), Bank of America ( BAC) and Wells Fargo ( WFC).
Bad news first: Wall Street wasn't happy with the numbers from Bank of America or Wells Fargo, as shares fell 5.3% and 6%, respectively. Bank of America's profit fell 16% year over year, while Wells Fargo's earnings per share plunged 56% from the year-ago period.
It was a much different picture at investment bank Goldman Sachs, which is firing on all cylinders: Revenue rose 30% year over year, driven by strong gains in both fixed income and equities trading, as well as its asset management division.
Nio hits record high. Chinese electric vehicle company Nio ( NIO) saw shares soar by more than 22% on Wednesday, hitting all-time highs along the way, following a new glowing report from JPMorgan on the stock's prospects.
JPMorgan upgraded the stock to "overweight" from "neutral," and boosted its price target on the shares from $14 to $40 -- a move that implied about 85% upside from Tuesday's close. Soaring demand for electric vehicles in China, the world's largest auto market, was cited as the bullish thesis.
Facebook goes "Ready Player One." Social media giant Facebook ( FB) is pushing further into virtual reality (VR) with its $299 Oculus Quest 2 headset, which recently began shipping. When Facebook purchased Oculus back in 2014, CEO Mark Zuckerberg outlined grand plans for VR, describing his vision for a world of remote learning, remote attendance of live sports games, seeing a doctor in virtual reality, and more.