November 7, 2024

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

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

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 about 0.2%. Meanwhile, the Dow Jones Industrial Average (^DJI) and Nasdaq Composite Index (^IXIC) fell nearly 0.1%.

Stocks are under pressure Growing doubts That the Fed will continue to cut interest rates aggressively – or even stay steady in November. A strong economy, cautious federal policy, and concerns about the financial impact of Republican candidate Donald Trump's election victory are factors at play.

Read more: What a Fed rate cut means for bank accounts, CDs, loans and credit cards

Amid the uncertainty, the 10-year Treasury yield (^TNX) settled around 4.2% after sharp gains on Monday helped push it above that level for the first time since July. The bond sell-off has affected interest rate-sensitive stocks such as real estate, where rising yields are usually a catalyst for equity withdrawals.

On the earnings front, General Motors (GM) raised its guidance for the third time this year as upbeat electric vehicle sales helped drive quarterly earnings and revenue. GM shares rose more than 9%. Elsewhere in earnings, GE Aerospace (GE) shares fell more than 7% and Verizon shares fell about 5% on mixed Q3 reports.

Meanwhile, anticipation is building for Tesla's ( TSLA ) earnings on Wednesday as Wall Street debates whether the “Magnificent Seven” tech giants will lead the stock's next leg higher.

Despite rising yields, gold prices rose (GC=F), on track to reclaim the record high reached on Monday. The gains came as investors searched for safety as the US presidential elections approached and tensions continued to escalate in the Middle East.

He lives7 updates

  • 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.

    (Source: Yahoo Finance)(Source: Yahoo Finance)

    (Source: Yahoo Finance)

  • 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.

  • 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.

  • 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.

  • 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%.

  • 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

  • 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