Key Takeaways

• The S&P 500 slipped 0.4% on Wednesday, Nov. 27, as the latest PCE report revealed a slight month-over-month uptick in inflation during October.
  

• Shares of HP and Dell moved lower after mixed earnings reports from the computer makers raised concerns about PC demand and the pace of AI adoption.
  

• Ulta Beauty shares posted gains as an analyst said the cosmetics retailer could see easing competitive pressure.
  

Major U.S. equities indexes lost ground on the last trading day before Thanksgiving.

The latest Personal Consumption Expenditure (PCE) data, released Wednesday morning, showed annual price increases of 2.3% in October, an uptick from September's rate of 2.1%. The Federal Reserve closely monitors the PCE, and the indication of stubborn inflation could influence policymakers as they weigh additional interest rate cuts.

The S&P 500 slipped 0.4% during the pre-holiday session. The Dow was down 0.3%, while the tech-heavy Nasdaq closed 0.6% lower.

Personal computer (PC) manufacturer Dell Technologies (DELL) released a mixed quarterly report, edging out profit estimates but missing sales forecasts. Although artificial intelligence (AI) demand helped boost the company's networking and server revenue, Dell's chief operating officer (COO) said on the earnings call that the AI business "will not be linear," suggesting that AI-driven growth will be a gradual process as customers adapt to the shifting technology landscape. Dell shares plunged 12.3% on Wednesday, the steepest drop of any stock in the S&P 500.

Shares of fellow PC maker and printer specialist HP (HPQ) plunged 11.3% after the company reported results for its fiscal fourth quarter. Although profits for the period matched expectations, sales were slightly below forecasts, and profit guidance for the current quarter came in below consensus estimates. AI PCs accounted for just 17% of sales for the full year, suggesting that adoption by consumers remains muted, and HP's outlook raised concerns about overall PC demand trends.

Design, engineering, and construction software provider Autodesk (ADSK) reported better-than-expected quarterly sales and profits, but its shares fell 8.6% as the company announced a transition in its chief financial officer (CFO) role. Interim CFO Betsy Rafael, who assumed the role in May amid concerns about the firm's accounting practices, will be replaced by Janesh Moorjani at the end of the fiscal year.

Texas Pacific Land Corp. (TPL) shares logged Wednesday's top performance in the S&P 500, adding 4.1%. Originally established to manage land related to long-defunct 19th-century railroad projects, the company has found numerous profitable uses for its acreage in the Permian Basin, the highest-producing oil region in the U.S. In addition to providing water and wastewater services for fracking operations, the firm has found new opportunities with bitcoin miners, wind farms, solar arrays, and carbon sequestration projects.