The Dow Jones, Nasdaq and S&P 500 indexes decline as Treasury yields reach their highest level since July.

He lives7 updates

• Tuesday, October 22, 2024 at 12:44 PM EST

  Sector Examination: Energy Advances, IT Lags

  The Energy (XLE), Consumer Staples (XLP) and Real Estate (XLRE) sectors led the sector action on Tuesday, with markets falling for the second straight session as traders priced in a higher policy stance for a longer duration from the Fed.

  Oil prices were notable, with West Texas Intermediate (CL=F) rising nearly 3% to trade above $72.50 per barrel. Brent crude (BZ=F), the international benchmark, rose more than 2% to trade above $76 a barrel.

  Information Technology (XLI), Materials (XLB), and Discretionary Consumption (XLY) were the biggest laggards on the day.

  

• 

  Tuesday, October 22, 2024 at 11:50 AM EST

  Elections provide 'high' level of uncertainty for global economic outlook: IMF

  Jennifer Schoenberger of Yahoo Finance reports:

  The global economy is headed 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 International Monetary Fund said on Tuesday.

  The IMF said higher global tariffs could exacerbate trade tensions, disrupt global supply chains, and harm medium-term growth prospects by reducing positive spillovers from innovation and technology transfer that have been fueling growth in emerging markets. and developing economies.

  Read more here.

• 

  Tuesday, October 22, 2024 at 10:59 AM EST

  Markets are discussing a higher interest rate stance from the Fed in the longer term

  Treasury yields rose over the past month amid a string of stronger-than-expected economic data and signs that inflation's path down toward the Fed's 2% target may take longer than initially hoped.

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

  As of Tuesday morning, markets were still anticipating a roughly 88% chance that the Fed would cut interest rates at its November meeting. According to CME FedWatch. But by the end of next year, markets see the Fed as likely to make one cut less than what was priced in on October 4 and two cuts less than markets expected on September 18, the day the Fed cut interest rates by half a percentage point.

• 

  Tuesday, October 22, 2024 at 10:02 AM EST

  GM raises earnings forecasts and shares rise

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

  Yahoo Finance's Pras Subramanian reports:

  During the quarter, GM reported revenue of $48.78 billion, easily topping the $44.69 billion Bloomberg consensus estimate and higher than the previous quarter's nearly $48 billion. GM's third-quarter revenues also rose 10.5% from a year ago.

  The company achieved adjusted earnings per share of $2.96, far exceeding expectations of $2.44. It announced adjusted earnings before interest, taxes and amortization of $4.115 billion, an increase of 15.5% over last year, with the adjusted EBIT margin rising to 8.4% from 8.1% on an annual basis.

  Read more here.

• 

  Tuesday, October 22, 2024 at 9:35 AM EST

  Stocks slide at open

  US stocks fell on Tuesday as investors digested the recent bond market sell-off and braced for the next wave of earnings reports.

  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 Nasdaq Composite (^IXIC) fell nearly 0.6%.

• 

  Tuesday, October 22, 2024 at 8:44 AM EST

  Companies announce their earnings Tuesday morning

  A group of companies announced third-quarter earnings Tuesday morning.

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

  Meanwhile, Philip Morris jumped 3% after raising its guidance thanks to higher cigarette prices as well as a growing smoke-free business. General Motors shares rose 1.4%, and 3M Technology and Manufacturing Group shares jumped 6% after beating profits.

  Here are more details about the companies' performance (forecasts according to Bloomberg estimates):

  • General Electric Aviation Company: Adjusted earnings per share of $1.15 versus $1.13 expected, and total revenue of $8.9 billion versus $9 billion expected.

  • Philip Morris: Adjusted EPS of $1.91 vs. $1.81 expected, and 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

  • GM: Adjusted EPS of $2.96 vs. $2.45 expected, revenue of $48.8 billion vs. $44.69 expected

• 

  Tuesday, October 22, 2024 at 8:06 AM EST

  Good morning. Here's what's happening today.

  Economic data: Philadelphia Fed Non-Manufacturing Index (October); Richmond Fed Index of Manufacturing and Business Conditions (October)

  Earnings: General Motors (GM), 3M (MMM), RTX (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), and Enphase Energy (ENPH).

  Here are some of the biggest stories you may have missed overnight and early this morning:

  GM reports third-quarter earnings beat, raises earnings forecasts again

  Nvidia plans to invest in Thailand as Southeast Asia becomes an AI hub

  ASML: Growth in 2026, US-China tensions persist

  Bullish Citi raised its 3-month gold price forecast to $2,800

  Trump tariffs: How big companies can escape 'blanket' tariffs