US stocks recovered from session lows but finished the day mixed as investors digested a recent bond market sell-off and the next wave of earnings reports.
The S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) closed just below the flatline, while the tech-heavy Nasdaq Composite (^IXIC) ticked up around 0.2%. It was the first first back-to-back negative days for the S&P 500 since Sept. 6.
Stocks are treading carefully amid growing doubts that the Federal Reserve will continue to cut rates aggressively — or even hold steady in November. Strength in the economy, cautious Fedspeak, and concerns about the fiscal impact of an election win by Republican nominee Donald Trump are factors in play.
Amid the uncertainty, the 10-year Treasury yield (^TNX) steadied around 4.2% after Monday's sharp gains helped push it above that level for the first time since July. The bond selling has weighed on rate-sensitive stocks such as real estate, with rising yields typically a catalyst for stock drawdowns.
On the earnings front, General Motors (GM) raised its guidance for the third time this year as upbeat EV sales helped deliver a quarterly profit and revenue beat. GM shares closed up more than 10%. Elsewhere in earnings, GE Aerospace (GE) sank over 8% and Verizon (VZ) shares fell around 5% on mixed third quarter reports.
Despite higher yields, gold (GC=F) prices rose, securing another record high. The gains came as investors sought safety with the US presidential election looming and Middle East tensions still on the rise.
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Alexandra Canal
McDonald's stock sinks on E. coli outbreak
McDonald's (MCD) shares sank 8% in after-hours trading on Tuesday after the US Center of Disease Control (CDC) said the company's quarter pounders had been linked to an E. coli outbreak in some states, with most illnesses in Colorado and Nebraska.
"This is a fast-moving outbreak investigation," the CDC wrote on its website. "Most sick people are reporting eating Quarter Pounder hamburgers from McDonald’s and investigators are working quickly to confirm which food ingredient is contaminated."
Per the CDC, McDonald’s has stopped using fresh slivered onions and quarter-pound beef patties in certain states while a source of illness is confirmed.
Brian Sozzi
Disastrous pre-announcement by Starbucks
Starbucks (SBUX) just pre-announced its earnings results, and they are very ugly.
Having gotten to know new Starbucks CEO Brian Niccol the past decade, this much I can say confidently:
Brian likely pre-announced these results to get them out of the way as they totally reflect prior management's many stumbles. I think you will hear Brian focus on quick actions he is taking when the company reports earnings shortly.
Brian came into a hot mess as CEO at Chipotle (CMG), fresh off an E. coli outbreak. Fixing that wasn't easy. But he is up against his biggest challenge yet in course-correcting Starbucks. There are deeply rooted issues. To see US comparable transactions at Starbucks crash 10% is shocking. Equally as shocking is that Starbucks is pulling its guidance.
Alexandra Canal
Stocks close mixed
The benchmark S&P 500 (^GSPC) saw its first back-to-back negative days since Sept. 6 after the index closed just below the flatline on Tuesday.
Matching the S&P 500, the Dow Jones Industrial Average (^DJI) also closed below the flatline while the tech-heavy Nasdaq Composite (^IXIC) ticked up around 0.2%.
Alexandra Canal
Walmart announces same-day prescription delivery
Yahoo Finance's Anjalee Khemlani reports:
Walmart (WMT) announced Tuesday it will offer same-day prescription delivery services in six states, with a plan to roll out to all 49 states in which it operates a pharmacy by January.
The first six states are Arkansas, Missouri, New York, Nevada, South Carolina, and Wisconsin. North Dakota is the only state where Walmart doesn't operate a pharmacy.
The move brings Walmart into the competitive field of online pharmacies and same-day retail deliveries, with players like Amazon (AMZN) Pharmacy, Walgreens (WBA), and CVS (CVS).
The new service is being integrated into the existing Walmart delivery service, where patients can add their prescription to their cart along with other items — a key differentiator, according to Walmart — and schedule a delivery time. It will apply any new or existing prescriptions and insurance coverage as if the patient were coming to the store to pick it up, Walmart said in its announcement.
Shares moved about 2% higher in late afternoon trading.
Trump Media & Technology Group stock (DJT) hit its highest level since July on Tuesday, rising as much as 10% as investors bet on former President Donald Trump's improved odds of winning the November election in exactly two weeks.
Shares in the company, the home of the Republican nominee's social media platform Truth Social, have seen a recent surge as both domestic and overseas betting markets shift in favor of a Trump victory, with prediction sites like Polymarket, PredictIt, and Kalshi all showing Trump's presidential chances ahead of those of Democratic nominee and current Vice President Kamala Harris.
National average polls, however, show both candidates in an incredibly tight race, especially in key battleground states like Pennsylvania and Michigan, which are likely to decide the fate of the election.
Trump Media went public on the Nasdaq in late March after merging with special purpose acquisition company Digital World Acquisition Corp. But the stock has been on a bumpy ride since, with shares oscillating between highs and lows as the moves have typically been tied to a volatile news cycle.
Over the past six months, the stock has been off around 8% — a massive improvement on the heels of the rally after shares hit their lowest point last month.
Trump maintains a roughly 60% interest in DJT. At current levels of above $33 a share, Trump Media boasts a market cap of about $6.7 billion, giving the former president a stake worth around $4 billion. Right after the company's public debut, Trump's stake was worth just over $4.5 billion.
Sector check: Energy leads, Information Technology lags
Energy (XLE), Consumer Staples (XLP), and Real Estate (XLRE) led Tuesday's sector action, with markets retreating for their second straight session as traders priced in a higher for longer policy stance from the Federal Reserve.
Oil prices were a standout, with WTI crude (CL=F) rising about 3% to trade above $72.50 a barrel. Brent crude (BZ=F), the international benchmark, rose more than 2% to trade just above $76 a barrel.
Information Technology (XLI), Materials (XLB), and Consumer Discretionary (XLY) served as the day's biggest laggards.
Josh Schafer
Elections offer 'high' level of uncertainty to global economic outlook: IMF
Yahoo Finance's Jennifer Schonberger reports:
The International Monetary Fund said Tuesday that the global economy is on pace for a soft landing this year and 2025 but elections around the world introduce a "high" level of uncertainty to that outlook due to potential changes in trade and fiscal policy.
The IMF said an increase in global tariffs could exacerbate trade tensions, disrupt global supply chains, and weigh down medium-term growth prospects by limiting positive spillovers from innovation and technology transfer that once fueled growth in emerging markets and developing economies.
The data has pushed the 10-year Treasury yield (^TNX) up nearly 50 basis points in the past month to hover near 4.2%, its highest level since July. As our graph below shows, the debate among investors appears to be more about how quickly the Fed will reduce interest rates over the next year than whether the central bank will cut once again in November.
As of Tuesday morning, markets were still pricing in a roughly 88% chance that the Fed cuts rates at its November meeting, per the CME FedWatch Tool. But by the end of next year, markets see the Fed likely making one less cut than was priced in on Oct. 4 and two less cuts than markets were projecting on Sept. 18, the day the Fed slashed rates by half a percentage point.
Josh Schafer
General Motors raises profit forecast, shares soar
General Motors (GM) stock rose more than 7% on Tuesday morning as the automaker boosted its profitability guidance for a third time this year.
Yahoo Finance's Pras Subramanian reports:
For the quarter, GM reported revenue of $48.78 billion, easily topping estimates of $44.69 billion per Bloomberg consensus, and higher than the prior quarter's nearly $48 billion. GM's Q3 revenue was also 10.5% higher than a year ago.
The company booked adjusted earnings per share of $2.96, far outstripping expectations of $2.44. It reported EBIT-adjusted profit of $4.115 billion, up 15.5% from a year ago, with EBIT-adjusted margin climbing to 8.4% from 8.1% year over year.
US stocks retreated on Tuesday as investors digested a recent bond market sell-off and braced for the next wave of earnings reports.
The S&P 500 (^GSPC) dropped more than 0.5%. The Dow Jones Industrial Average (^DJI) dropped more than 120 points, or 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) slid roughly 0.6%.
Laura Bratton
Companies reporting earnings Tuesday morning
A host of companies reported third quarter earnings Tuesday morning.
The biggest premarket stock movers were GE Aerospace (GE), Verizon (VZ), 3M (MMM), and Philip Morris (PM). GE Aerospace stock fell over 5% and Verizon shares fell around 3% on mixed third quarter reports. Paint company Sherwin Williams (SHW) fell 4% after an earnings miss. Lockheed Martin (LMT) and Moody’s (MCO) fell less than 1% despite strong results.
Meanwhile, Philip Morris jumped 3% after raising its guidance thanks to higher cigarette prices as well as its surging smoke-free business. General Motors (GM) rose 1.4% and tech and manufacturing conglomerate 3M jumped 6% after earnings beats.
Here are more details about the companies’ performances (expectations according to Bloomberg consensus estimates):
GE Aerospace: Adjusted earnings per share of $1.15 vs. $1.13 expected, and revenue totaling $8.9 billion vs. $9 billion expected
Philip Morris: Adjusted EPS of $1.91 vs. $1.81 expected, net revenue of $9.9 billion vs. $9.7 billion expected
Verizon: Adjusted EPS of $6.84 vs. $6.44 expected, revenue of $17.1 billion vs. $17.4 billion expected
Moody’s: Adjusted EPS of $3.21 vs. $2.88 expected, revenue of $1.8 billion vs. $1.7 billion expected
Lockheed Martin: Adjusted EPS of $6.84 vs. $6.44 expected, revenue of $17.1 billion vs. $17.4 billion expected
Sherwin Williams: Adjusted EPS of $3.37 vs. $3.53 expected, revenue of $6.16 billion vs. $6.21 billion expected
3M: Adjusted EPS of $1.98 vs. $1.91 expected, revenue of $6.07 billion vs. $6.06 billion expected
General Motors: Adjusted EPS of $2.96 vs. $2.45 expected, revenue of $48.8 billion vs. $44.69 expected
Jenny McCall
Good morning. Here's what's happening today.
Economic data: Philadelphia Fed Non-Manufacturing Index (October); Richmond Fed Manufacturing & Business Conditions Index (October)
A recreational drug called “pink cocaine” is getting attention and causing confusion since it doesn't typically contain cocaine. The pink powder — really a grab bag of different drugs dyed pink — has turned up in drug seizures, prompting warnings from law enforcement. Pink cocaine is also known as “tusi,” but both nicknames for the powder are more about marketing than reality.
NEW YORK (AP) — Peloton plans to sell its deluxe stationary bike at Costco this holiday season as the struggling connected-exercise company seeks to broaden its customer base.
Go back to the mid-1990s and find the sweet, good-looking, 28-year-old actor on NewsRadio, a comforting sitcom of the kind that the decade produced in abundance.His name was Joe Rogan. He played a character not dissimilar from Joey in Friends, sporting a good head of black hair and an action-man physique.Now he is a White House kingmaker: Donald Trump will appear on his podcast, his campaign has announced. And Kamala Harris has been widely rumored to be considering the same move.Read more at The
Georgia's highest court on Tuesday declined to fast-track an appeal of a decision blocking Republican-backed changes to the battleground state's election rules, making them unlikely to go into effect for the Nov. 5 U.S. presidential election. Georgia Supreme Court justices unanimously denied an emergency motion to pause an order blocking the rules and expedite its review of the case, a docket entry showed. The half-dozen rules, passed by the board in a 3-2 vote, empower county election board members to investigate discrepancies between the number of ballots cast and voters in each precinct, and examine troves of election-related documents before certifying their results.
CHICAGO (AP) — The Chicago Blackhawks have activated defenseman Artyom Levshunov and assigned the No. 2 overall pick in this year's NHL draft to the minors.
Today, October 22nd, 2024, Reykjavík Energy (Orkuveita Reykjavíkur) concluded a green bond auction in the green bond classes OR031033 GB, OR280845 GB and OR180255 GB. Total bids amounted to ISK 4,440 million nominal value. OR031033 GB bears 8.30% fixed nominal interest and pays equal installments every six months with a final maturity date of October 3rd, 2033. Previously, bonds with a nominal value of ISK 4,630 million have been issued in the class. The series attracted bids totaling ISK 1,860
MILAN (AP) — AC Milan teenager Francesco Camarda thought he had become the youngest Champions League goalscorer in history. But then the VAR intervened.
TORONTO — A Manulife report says retiree experiences vary significantly based on when a person retired, and whether it was planned or earlier than expected.
ATLANTA (AP) — The Georgia Supreme Court on Tuesday rejected an attempt by national and state Republicans to immediately reinstate recently passed election rules that a judge had ruled were invalid.
PORT ALBERNI, B.C. — Police say they have found the body of a second person who was trapped in their submerged vehicle after a road washout on the west coast of Vancouver Island.