US stocks slipped 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 about 0.2%. Meanwhile, the Dow Jones Industrial Average (^DJI) and the tech-heavy Nasdaq Composite (^IXIC) were both off about 0.1%.
Stocks are coming under pressure 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 were up more than 9%. Elsewhere in earnings, GE Aerospace (GE) fell over 7% and Verizon shares fell around 5% on mixed third quarter reports.
Despite higher yields, gold (GC=F) prices rose, on track to reclaim Monday's 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
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.
(Source: Yahoo Finance)
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)
The S&P 500 (^GSPC) is under pressure as investors digest a slew of earnings. Shares of Verizon (VZ) are falling after the company missed third quarter revenue expectations and projected capital spending in 2025 to be higher than expected. Wall Street is getting a mixed picture of the defense sector as RTX (RTX) and Lockheed Martin (LMT) posted contrasting earnings. RTX swung to a quarterly profit as sales came in above expectations, and the company lifted its full-year sales guidance. On the other hand, Lockheed Martin missed revenue estimates as sales tumbled. On the consumer front, Kimberly-Clark (KMB) slashed its full-year sales forecast after posting third quarter results that fell below estimates. Yahoo Finance trending tickers include GE Aerospace (GE), Philip Morris International (PM), and Microsoft (MSFT). Key guests include:3:00 p.m. ET - Rick Rieder, BlackRock Global Fixed Income Chief Investment Officer3:20 p.m. ET - Secretary Jennifer Granholm, U.S. Energy Dept. of Energy4:15 p.m. ET - Brendan Foley, McCormick CEO4:30 p.m. ET - Maleka Momand, Esper Co-Founder & CEO
WASHINGTON, October 22, 2024--Today, the CCAGW PAC announced its endorsement for eight candidates for the U.S. Senate and 98 candidates for the U.S. House of Representatives.
Nexans, a global organization and key driver for the world's transition to a more connected and sustainable future, is excited to announce the launch of the Mobiway® Speed cable reel system. This innovative solution is engineered to enhance cable installation efficiency, ergonomics, and maneuverability, marking a revolution over traditional reels.
Relatives of a City Council candidate in Richmond, Virginia, are casting doubt on his claim that he is a cousin of George Floyd, the Black man whose 2020 death in police custody reignited the national Black Lives Matter movement. Tavares Floyd wants to represent the 6th District in Virginia's capital city of more than 200,000 people. Tavares Floyd also identified himself as George Floyd's cousin in June 2020, just days after Floyd's death in Minneapolis, when he spoke at a large demonstration in Richmond.
Jon Scheyer's third season at No. 7 Duke begins as the Atlantic Coast Conference favorite, even while adding 10 newcomers and preparing to lean on a freshman earning All-America recognition before ever playing a college game.
AffinitiQuest, a leader in Digital Credentials technology, is pleased to announce its selection by the Canadian Government to deliver a white-label version of its Digital Credential Orchestration Platform to the Canadian Digital Service (CDS) and Employment and Social Development Canada (ESDC). The service will be available for use by all federal government departments across Canada and supports the Government of Canada's vision for service delivery excellence and digital transformation, as outl
Investing.com -- Altair Engineering surged Tuesday as the engineering software maker is exploring a potential sale, Reuters reported, citing unnamed sources.
(Reuters) -After California state legislators passed bills addressing the legacy of slavery and racial discrimination, Governor Gavin Newsom vetoed the most ambitious of the reparations proposals. The setback last month followed turmoil at Harvard over that elite university's plans to make amends for historic ties to slavery and a lawsuit challenging an Illinois city's reparations payments. Shortly before the California legislative session ended this summer, a state Senate reparations bill on land restitution proposed by state Sen. Steven Bradford passed 56-0.
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