UAL - Earnings Season Is Here -- and Even AI Stocks Have to Deliver
2023-10-18 08:43:51 ET
The stock market has shown a typical level of volatility in October, as market indexes have tried to rebound from steep losses in September. Yet there's plenty of uncertainty still out there, and that has investors trying to figure out the best strategy to follow. With ongoing worries about interest rates, stock index futures fell slightly in premarket trading early Wednesday.
Earnings season has kicked off, and now, the flood of companies reporting their latest financial results is growing. Some investors have looked to artificial intelligence (AI) stocks to help them find long-term growth prospects in their portfolios, but as the latest results from ASML Holding (NASDAQ: ASML) show, having exposure to artificial intelligence doesn't guarantee endless gains. Elsewhere, shares of United Airlines Holdings (NASDAQ: UAL) also lost altitude, showing that the long rebound in travel stocks might be giving way to geopolitical concerns.
Shares of ASML Holding were down more than 3% in premarket trading. The maker of lithography equipment for production of high-end semiconductors reported third-quarter results that showed signs of a slowdown in the industry, which could bode ill for a wider range of companies providing key materials for AI development.
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Earnings Season Is Here -- and Even AI Stocks Have to Deliver