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Russian (RU) Tue, Oct 22, 2024, 8:37 AM1 min read
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US stocks retreated on Tuesday as investors digested a recent bond-market selloff 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 around 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) slid roughly 0.6%.
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 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 5%.
At the same time, anticipation is building for earnings from Tesla (TSLA) on Wednesday, as Wall Street debates whether the "Magnificent Seven" tech megacaps will lead stocks' next leg higher.
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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Stocks slide at the open
US stocks retreated on Tuesday as investors digested a recent bond-market selloff 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%.
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 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’s more detail about the companies’ performance (expectations according to Bloomberg consensus estimates):
Good morning. Here's what's happening today.
Economic data: Philadelphia Fed Non-Manufacturing Index (October); Richmond Fed Manufacturing & Business Conditions Index (October)
Earnings: General Motors (GM), 3M Company (MMM), RTX Corporation (RTX), Verizon Communications (VZ), GE Aerospace (GE), Lockheed Martin (LMT), Quest Diagnostics (DGX), Philip Morris (PM), Denny's Corporation (DENN), Sherwin-Williams (SHW), Interpublic Group of Companies (IPG), Norfolk Southern Corporation (NSC), Texas Instruments (TXN), PulteGroup (PHM), Enphase Energy (ENPH)
Here are some of the biggest stories you may have missed overnight and early this morning:
GM posts Q3 earnings beat, raises profit forecast again
Nvidia plans to invest in Thailand as SE Asia becomes AI hub
ASML: Growth in 2026, US-China tensions to persist
Bullish Citi hikes 3-month gold price outlook to $2,800
Trump tariffs: How big business could escape 'blanket' duties
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