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Market trends: Palo Alto Networks, Intuit, LVMH earnings

Yahoo Finance contributor Remy Blaire reports from the New York Stock Exchange to discuss stocks opening lower this morning, earnings reports from Palo Alto Networks and Intuit, and the impact of the luxury retail market on LVMH.

Video transcript

- Welcome back. Let's head right over to the New York Stock Exchange now for a closer look at how markets are moving this Wednesday morning. Yahoo Finance contributor Remy Blaire is on the ground. Remy, what's the feeling down there?

REMY BLAIRE: Well, Wall Street has opened lower on this Wednesday morning, with the major US stock averages in negative territory. As we continue to keep an eye on Washington, DC on any progress regarding the debt ceiling negotiations, the latest earnings reports are being digested today.

Now, at the open we saw shares of Palo Alto networks higher and this came as the company reported an earnings beat for the fiscal third quarter. The company also raised its guidance for the fourth quarter.

Now, the company's results in the latest quarter were boosted by growth in demand for cloud based services. The company's CEO says that it expects an AI transformation to take place within the next 12 months, not just within the company but within the software enterprise industry itself.

And sticking with earnings this morning, Intuit shares open lower. Tax season sales missed forecasts and fiscal third quarter earnings topped estimates. It did see a decline in tax filings, which did hit sales of TurboTax. Its earnings outlook for the current quarter came in lower than expected.

Meanwhile, moving over to the luxury goods market, as other retailers in the US report their earnings today, LVMH has extended weakness for the second session in a row. In the previous session, we saw shares of other luxury goods-makers, including Aramis, as well as Kering and Richemont, trade lower. And because of that downturn we saw in the luxury goods market, shares of those companies wiped off billions of dollars in the market.

Now, the sell off in LVMH comes on the heels of signs of a slowdown in demand in the sector in the US. Now, LVMH is the first European company that reached a market cap of $500 billion and traded at over 20 times estimated earnings.