Stock markets today: Dow, Nasdaq, S&P 500 slide as Treasury yields hit highest level since July

U.S. stocks fell on Tuesday as investors digested the recent bond market selloff and prepared for the next earnings report.

The S&P 500 (^GSPC) fell about 0.2%. Meanwhile, the Dow Jones Industrial Average (^DJI) and the tech-heavy Nasdaq Composite (^IXIC) were both about 0.1% lower.

Stocks are coming under pressure amid doubts that the Federal Reserve will aggressively cut rates — or even hold them steady — in November. Factors at play include strength in the economy, a cautious FedSpeak and concerns about the fiscal impact of Republican nominee Donald Trump's election victory.

Read more: What Fed Rate Cuts Mean for Bank Accounts, CDs, Loans and Credit Cards

Amid uncertainty, the 10-year Treasury yield (^TNX) settled around 4.2% after Monday's sharp gain helped push it above that level for the first time since July. Bond selling has weighed on rate-sensitive stocks like 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 buoyant EV sales helped quarterly profit and revenue rates. GM shares rose more than 9%. Elsewhere on earnings, GE Aerospace ( GE ) fell more than 7% and Verizon shares fell nearly 5% on a mixed third-quarter report.

At the same time, expectations are building for earnings from Tesla ( TSLA ) on Wednesday as Wall Street debates whether the “Magnificent Seven” tech megacaps will drive the stock's next leg higher.

Despite higher yields, gold (GC=F) prices rallied, on track to recover from Monday's record high. The gains came as investors sought safety as the US presidential election loomed and tensions in the Middle East continued to rise.

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Tue, Oct 22, 2024 at 9:44 am PDT

Sector Check: Energy Leads, Information Technology Lags

With Energy (XLE), Consumer Staples (XLP), and Real Estate (XLRE) leading sector action on Tuesday, markets retreated for their second straight session as traders priced in a longer policy stance from the Federal Reserve.

Oil prices were a standout, with WTI crude (CL=F) up nearly 3% to above $72.50 a barrel. Brent crude (BZ=F), the international benchmark, rose more than 2% to trade above $76 a barrel.

Information Technology (XLI), Materials (XLB), and Consumer Discretionary (XLY) were the day's biggest laggards.

(Source: Yahoo Finance)
Tuesday, October 22, 2024 at 8:50 am PDT

Elections suggest 'high' level of uncertainty in global economic outlook: IMF

Yahoo Finance's Jennifer Schoenberger reports:

The International Monetary Fund said on Tuesday that the global economy is on pace for a soft landing this year and in 2025, but elections around the world added a “high” level of uncertainty to that outlook due to possible changes in trade and fiscal policy.

The IMF said global tariff hikes could exacerbate trade tensions, disrupt global supply chains and reduce medium-term growth prospects by limiting positive spillovers from innovation and technology transfer that once fueled growth in emerging markets and developing economies.

Read more here.
Tue, Oct 22, 2024 at 7:59 am PDT

Markets are bracing higher for a longer interest rate stance from the Fed

Treasury yields rose last month amid stronger economic data than expected and signs that inflation's path toward the Fed's 2% target may take longer than initially expected.

The data pushed the 10-year Treasury yield (^TNX) up nearly 50 basis points last month to near 4.2%, the highest level since July. As our graph below shows, the debate among investors is more about how quickly the Fed will cut interest rates next year than whether the central bank will cut again in November.

As of Tuesday morning, markets were still pricing in a roughly 88% chance that the Fed will cut rates at its November meeting, according to the CME FedWatch tool. But by the end of next year, markets see the Fed as likely to cut one less rate than on Oct. 4 and two fewer cuts than on Sept. 18, the day the Fed cut rates by half a percentage point.
Tue, Oct 22, 2024 at 7:02 am PDT

General Motors raises profit forecast, shares rise

General Motors ( GM ) stock rose more than 7% on Tuesday morning as the automaker raised its profitability guidance for the third time this year.

Pros Subramanian of Yahoo Finance reported:

For the quarter, GM reported revenue of $48.78 billion, easily topping the Bloomberg consensus estimate of $44.69 billion and up from about $48 billion in the previous quarter. GM's Q3 earnings were also up 10.5% from a year ago.

The company booked adjusted earnings per share of $2.96, beating 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.

Read more here.
Tue, Oct 22, 2024 at 6:35 am PDT

Slide the stock open

U.S. stocks retreated on Tuesday as investors digested the recent bond market selloff and prepared for the next earnings report.

The S&P 500 (^GSPC) fell more than 0.5%. The Dow Jones Industrial Average (^DJI) fell more than 120 points, or 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) fell roughly 0.6%.
Tue, Oct 22, 2024 at 5:44 AM PDT
Companies are reporting earnings on Tuesday morning

Tuesday morning a host of companies reported third quarter earnings.

The biggest premarket stock movers were GE Aerospace (GE), Verizon (VZ), 3M (MMM), and Philip Morris (PM). GE Aerospace stock fell more than 5% and Verizon shares fell nearly 3% on a mixed third-quarter report. Paint company Sherwin Williams ( SHW ) fell 4% after missing an earnings call. Lockheed Martin ( LMT ) and Moody's ( MCO ) fell less than 1% despite strong results.

Meanwhile, Philip Morris jumped 3% after raising its guidance for higher cigarette prices as well as its growing smoke-free business. General Motors ( GM ) rose 1.4% and tech and manufacturing company 3M gained 6%.

Here are more details on the company's performance (expectations according to Bloomberg consensus estimates):

GE Aerospace: Adjusted earnings per share were $1.15 vs. $1.13 expected, and total revenue was $8.9 billion vs. $9 billion expected.

Philip Morris: Adjusted EPS of $1.91 vs. $1.81 expected, $9.9 billion vs. $9.7 billion expected

Verizon: Adjusted EPS of $6.84 vs. $6.44 expected, $17.1 billion vs. $17.4 billion expected

Moody's: Adjusted EPS of $3.21 vs. $2.88 expected, $1.8 billion vs. $1.7 billion expected

Lockheed Martin: Adjusted EPS of $6.84 vs. $6.44 expected, $17.1 billion vs. $17.4 billion expected

Sherwin Williams: Adjusted EPS of $3.37 vs. $3.53 expected, $6.16 billion vs. $6.21 billion expected

3M: Adjusted EPS of $1.98 vs $1.91 expected, $6.07 billion vs $6.06 billion expected

Typical motors: Adjusted EPS of $2.96 vs. $2.45 expected, revenue of $48.8 billion vs. $44.69 expected
Tuesday, October 22, 2024 at 5:06 AM PDT

good morning Here's what's happening today.

Financial Information: Philadelphia Fed Non-Manufacturing Index (October); Richmond Fed Manufacturing and 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 ), Dennis 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 big stories you missed overnight and 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 continue

Bullish City raises 3-month gold to $2,800

Trump Tariffs: How Big Business Can Avoid 'Blanket' Tariffs