U.S. stocks rose in Tuesday’s trading as Wall Street digested and priced in corporate earnings from some of the market’s biggest players.
The S&P 500 (^GSPC) rose 1.6%, ending the third straight day the index rose 1%. The Dow Jones Industrial Average (^DJI) edged up 1.1%. The tech-heavy Nasdaq Composite (^IXIC) extended gains 2.3%, a session high.
The jumps continued equities’ gains from Monday as major indexes rallied ahead of a string of third-quarter earnings this week. A preview of Tuesday’s big earnings action:
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Coca-Cola (KO) released its results before the bell on Tuesday. The Atlanta-based company raised its full-year outlook as quarterly earnings and revenue beat expectations.
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Shares of General Motors (GM) rose after the automaker beat profit expectations but fell short of revenue.
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Profits at General Electric (GE), meanwhile, fell in its latest quarter as the company plans to cut costs at its renewable energy business.
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Microsoft (MSFT) released its fiscal first quarter results after the bell on Tuesday, beating analysts’ expectations for revenue and profit, despite falling cloud revenue.
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Alphabet (GOOGL) also released quarterly results that beat analysts’ revenue and profit expectations as YouTube’s ad revenue fell short. Shares fell after hours.
“The pace of earnings reporting has really picked up and this morning’s results have been somewhat lackluster,” Paul Hickey, chief portfolio manager of Bespoke Wealth Management Services, wrote in a note. “Of the nearly 40 reports so far this morning, 64% have exceeded EPS forecasts and 62% have exceeded revenue estimates. Additionally, slightly more companies lowered their forecasts than raised them.
About one-fifth of S&P 500 companies had released third-quarter results as of Friday, and 72% of them posted earnings above Wall Street expectations, according to FactSet.
Elsewhere in corporate news, shares of Adidas fell after the sports brand ended its partnership with Ye, also known as Kanye West, with “immediate effect”. In a statement on Tuesday, the sportswear maker said it “does not tolerate anti-Semitism and any other type of hate speech” and that its recent comments were “unacceptable, hateful and dangerous.” The stock is down 66% this year.
Shares of Twitter (TWTR) rose as Elon Musk pledged to complete the acquisition by the end of the week. The stock is up 23% this year.
In commodity markets, Brent, the international oil benchmark, fell 1.55% to $83.27 a barrel on Tuesday morning. US bond yields fell, with 10-year Treasuries falling to 4.1% as data showed house price growth slowed from the highest level on record.
Elsewhere, the yield on UK 10-year government bonds fell slightly following the official appointment of Rishi Sunak as Prime Minister.
The US dollar fell on the day, but remains precariously high against the Japanese yen (JPY=X), Chinese yuan (CNH=X) and British pound (GBPUSD=X), reports Jared Blikre of Yahoo Finance. , with far-reaching implications for multinational corporate earnings and global risk markets.
Economically, consumer confidence weakened this month as high borrowing costs and inflation hit household budgets. The consumer confidence index fell to 102.5 from a revised 107.8 in September, according to data released Tuesday by the Conference Board. Economists polled by Bloomberg called for a drop to 105.9.
Overseas, stocks in Hong Kong and mainland China ended the day unchanged after swinging between losses and gains. U.S.-listed Chinese stocks fell to their lowest level in nearly a decade on Monday, a day after President Xi Jinping secured a third term controlling the ruling Communist Party.
“The China we are looking at right now, led by Xi Jinping, is more security-oriented. It is more focused on restructuring the economy, so there are fewer vulnerabilities for the party in terms of reckless credit expansion in the housing sector, run-of-the-mill shadow funding,” Leland said on Monday. Miller, co-founder and CEO of China Beige Book, at Yahoo Finance Live. .
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Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv
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