U.S. stock futures fell on Tuesday, giving the Dow another down day as investors reconsidered the prospect of interest rate cuts and braced for the next wave of earnings reports.
Dow Jones Industrial Average futures (YM=F) fell about 0.4%, ending with a significant loss. S&P 500 futures (ES=F) also fell 0.4%, and contracts for the tech-heavy Nasdaq 100 (NQ=F) also fell 0.5%.
Stocks are under pressure amid growing doubts that the Federal Reserve will continue to cut interest rates aggressively or even leave them unchanged in November. Factors include a strong economy, cautious Fedspeak, and concerns about the fiscal impact of President Trump’s increasingly likely victory.
Amid uncertainty, the 10-year U.S. Treasury yield (^TNX) rose sharply on Monday, above that level for the first time since July, and held steady above 4.2%. Bond selling has weighed on interest-rate-sensitive stocks such as real estate, and rising yields typically trigger stock prices to fall.
General Motors (GM) raised its earnings forecast for the third time this year as strong EV sales outpaced quarterly profit and sales. GM shares rose about 1% in premarket trading. Earnings season accelerates on Tuesday, with top companies reporting including 3M (MMM), Verizon (VZ) and Lockheed Martin (LMT).
At the same time, expectations for Wednesday’s Tesla (TSLA) earnings are rising as Wall Street debates whether the “Magnificent Seven” tech megacaps will drive the stock’s next rally.
Despite the rise in yields, gold (GC=F) prices have risen and are on track to reclaim Monday’s all-time highs. It rose as investors sought safety as the US presidential election looms and tensions in the Middle East remain high.
Live2 update
Tuesday, October 22, 2024 05:44 PDT
On Tuesday morning, many companies announced their third quarter results.
The stocks that moved the most before the market were GE Aerospace (GE), Verizon (VZ), 3M (MMM), and Philip Morris (PM). GE Aerospace fell more than 5% and Verizon shares fell about 3% after mixed third-quarter results. Paint company Sherwin-Williams (SHW) fell 4% after poor results. Lockheed Martin (LMT) and Moody’s (MCO) were down less than 1% despite strong results.
Meanwhile, Philip Morris rose 3% after raising its guidance due to rising tobacco prices and a surge in smoke-free businesses. General Motors (GM) rose 1.4%, and high-tech manufacturing conglomerate 3M rose 6%, with higher profits.
Here are details about the company’s performance (as per Bloomberg consensus estimates):
GE Aerospace: Adjusted earnings per share of $1.15 vs. $1.13 expected, revenue of $8.9 billion vs. $9 billion expected.
Philip Morris: Adjusted EPS of $1.91 ($1.81 expected), net revenue of $9.9 billion ($9.7 billion expected).
Verizon: Adjusted EPS of $6.84 ($6.44 expected), revenue of $17.1 billion ($17.4 billion expected).
Moody’s: Adjusted EPS of $3.21 ($2.88 expected), revenue of $1.8 billion ($1.7 billion expected)
Lockheed Martin: Adjusted EPS of $6.84 ($6.44 expected), revenue of $17.1 billion ($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 ($1.91 expected), revenue of $6.07 billion ($6.06 billion expected).
General Motors: Adjusted EPS of $2.96 ($2.45 expected), revenue of $48.8 billion ($44.69 expected)
Tuesday, October 22, 2024 5:06 a.m. PDT
good morning. Here’s what happened today:
Economic data: Philadelphia Fed Nonmanufacturing Business Index (October). Richmond Fed Manufacturing Business Index (October)
Revenue: 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 throughout the night and early this morning.
GM raises profit forecast again after 3rd quarter earnings beat
Nvidia plans to invest in Thailand as Southeast Asia becomes AI hub
ASML: Growth in 2026, US-China tensions continue
Bullish Citi raises 3-month gold price outlook to $2,800
Trump tariffs: How big companies can avoid ‘blanket’ tariffs
