Zoom Drops, Best Buy Rises on Wall Street After Results

Zoom Video Communications was among the biggest fallers on the New York stock exchange on Tuesday. The video chat service, which rose to prominence during the coronavirus pandemic, saw revenue and user growth amid a return to office work. Still, expectations for the current quarter have been disappointing.

 

Zoom warned earlier this year that the stormy growth of the corona pandemic is a thing of the past. The stock was down more than 5 percent.

Best Buy, on the other hand, gained almost 9 percent. The electronics chain posted more sales and profit last quarter than investors and analysts had expected. In addition, the retailer maintained expectations for the current important holiday quarter, despite the pressure of high inflation on consumer purchasing power. Thanks to the strong performance in the third quarter, the company also became slightly more optimistic about its full-year revenue outlook.

The mood on Wall Street remained cautious after the previous day’s loss. Investors are especially looking forward to the minutes of the last interest rate meeting of the US central bank, which will be released on Wednesday. Those notes may hold more clues about the Federal Reserve’s future interest rate moves.

Investors are also preparing for a shortened trading week. The stock exchanges in New York will remain closed on Thursday for Thanksgiving Day, and trading will take place for only half a day on Friday.

Shortly after the start of trading, the Dow Jones index was 0.6 percent higher at 33,912 points. The broad S&P 500 rose 0.45 percent to 3,968 points, and the tech indicator Nasdaq rose 0.1 percent to 11,036 points.

Technology company Dell climbed 3.2 percent after well-received results. Chip company Analog Devices, which also released figures, rose 3.7 percent. Carvana fell 2.5 percent. Analysts from investment bank Cowen lowered the advice for online used car sellers. On the other hand, homebuilder Toll Brothers benefited from an advisory increase by JPMorgan and rose 2.6 percent.

Baidu was worth 0.7 percent more. The Chinese search engine, also listed on Wall Street, reduced its loss in the past quarter thanks to cost-cutting. The company also recorded more turnover.

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