US open: Stocks trade higher following consumer confidence data
Wall Street stocks were in the green early on Tuesday as market participants digested key consumer confidence figures ahead of earnings from Microsoft and Google owner Alphabet.
As of 1530 BST, the Dow Jones Industrial Average was up 0.64% at 31,700.90, while the S&P 500 advanced 1.06% to 3,837.59 and the Nasdaq Composite came out the gate 1.62% firmer at 11,130.53.
The Dow opened 201.28 points higher on Tuesday, extending gains recorded in the previous session as market participants prepped for a week packed full of earnings from the nation's top tech firms.
Yesterday's rebound was seemingly driven by expectations that we may be close to a pause in the current pace of interest rate rises from the Federal Reserve.
However, CMC Markets' Michael Hewson seems to think that continued resilience in US treasury yields suggests that bond markets still have doubts about a pause and that the Fed will more than likely continue to push its luck until "something snaps".
"With Federal Reserve officials now officially in a quiet period in the lead-up to next week’s meeting, there is little prospect of any sort of pushback on this belief. Let’s hope that markets aren’t getting ahead of themselves and indulging in a spot of wishful thinking," said Hewson.
Both Alphabet and Microsoft will report after the close of trading on Tuesday, while Facebook parent Meta Platforms will publish its latest set of quarterly earnings on Wednesday, and Amazon and Apple will follow on Thursday.
Outside of tech stocks, consumer goods giant 3M posted a 4% fall in quarterly revenues on Tuesday as declining international earnings due to a stronger US dollar and divestitures both weighed on its performance, while automaker General Motors beat third-quarter earnings expectations and held full-year guidance on Tuesday.
Elsewhere, UPS backed its full-year revenue guidance on Tuesday as it posted a rise in third-quarter profit and revenue. Consolidated operating profit jumped 7.5% from the third quarter of last year to $3.1bn, while revenues rose 4.2% to $24.2bn. Diluted earnings per share were $2.96, while adjusted diluted EPS came to $2.99, up 10.3% on the same period a year earlier.
Still to come, Chipotle figures will be published after the close.
Turning now to data, US house price growth eased in August amid higher interest rates, according to the latest S&P CoreLogic Case-Shiller national home price index. The index covering all nine US census divisions rose 13% on the year, down from 15.6%growth in July.
On another note, Conference Board's consumer confidence index decreased to 102.5 in October, down from 107.8 in September, after back-to-back monthly gains. The present situation index, based on consumers' assessment of current business and labour market conditions, declined sharply to 138.9 from 150.2, while the expectations index, based on consumers' short-term outlook for income, business, and labour market conditions, dropped to 78.1 from 79.5.
Finally, the Richmond Fed's manufacturing index fell to -10 in October, down from 0 in September and the lowest reading since May, as two of its three component indices deteriorated notably.
Reporting by Iain Gilbert at Sharecast.com
Dow Jones - Risers
American Express Co. (AXP) $146.31 3.30%
Nike Inc. (NKE) $89.90 2.15%
Home Depot Inc. (HD) $288.85 1.97%
Salesforce.Com Inc. (CRM) $163.52 1.79%
Walt Disney Co. (DIS) $103.54 1.79%
Visa Inc. (V) $193.52 1.48%
Boeing Co. (BA) $143.75 1.19%
Intel Corp. (INTC) $27.48 1.09%
Apple Inc. (AAPL) $150.81 0.91%
Cisco Systems Inc. (CSCO) $43.87 0.75%
Dow Jones - Fallers
Travelers Company Inc. (TRV) $177.40 -1.33%
International Business Machines Corporation (CDI) (IBM) $131.56 -0.85%
3M Co. (MMM) $117.44 -0.79%
Johnson & Johnson (JNJ) $170.37 -0.36%
Amgen Inc. (AMGN) $260.40 -0.35%
Walmart Inc. (WMT) $139.07 -0.25%
Goldman Sachs Group Inc. (GS) $328.18 -0.16%
JP Morgan Chase & Co. (JPM) $122.19 -0.15%
Unitedhealth Group Inc. (UNH) $540.87 -0.13%
Dow Chemical Co. (DOW) $47.01 -0.06%
S&P 500 - Risers
Centene Corp. (CNC) $81.13 7.01%
IQVIA Holdings Inc. (IQV) $192.10 6.98%
Paypal Holdings Inc (PYPL) $88.88 6.67%
Dish Network Corp. (DISH) $14.89 5.79%
Intuitive Surgical Inc. (ISRG) $230.97 4.86%
Coty Inc. Class A (COTY) $6.59 4.86%
Pentair plc (PNR) $42.69 4.67%
Netflix Inc. (NFLX) $294.71 4.34%
Advanced Micro Devices Inc. (AMD) $61.18 4.23%
Laboratory Corporation of America Holdings (LH) $223.64 4.16%
S&P 500 - Fallers
Ball Corp (BALL) $46.81 -5.22%
Corning Inc. (GLW) $30.87 -4.52%
CVS Health Corp (CVS) $91.06 -3.95%
Cadence Design Systems Inc. (CDNS) $155.28 -3.08%
Invesco Ltd. (IVZ) $14.63 -2.79%
Cincinnati Financial Corp. (CINF) $96.88 -2.79%
Gallagher Arthur J (AJG) $175.00 -2.32%
Westrock Company (WRK) $32.38 -2.18%
General Electric Co. (GE) $71.79 -2.15%
Raytheon Technologies Corporation (RTX) $87.82 -2.13%
Nasdaq 100 - Risers
Trip.com Group Limited (TCOM) $22.28 9.43%
Paypal Holdings Inc (PYPL) $88.88 6.67%
Qurate Retail Inc. (QRTEA) $2.24 6.16%
Dish Network Corp. (DISH) $14.89 5.79%
Mercadolibre Inc. (MELI) $867.84 4.92%
Intuitive Surgical Inc. (ISRG) $230.97 4.86%
Netflix Inc. (NFLX) $294.71 4.34%
Nvidia Corp. (NVDA) $131.14 4.09%
Asml Holdings N.V. (ASML) $492.28 4.08%
Microchip Technology Inc. (MCHP) $64.92 3.99%
Nasdaq 100 - Fallers
Cadence Design Systems Inc. (CDNS) $155.28 -3.08%
Biogen Inc (BIIB) $271.19 -1.25%
Synopsys Inc. (SNPS) $298.43 -1.08%
PACCAR Inc. (PCAR) $91.42 -0.65%
Costco Wholesale Corp. (COST) $495.02 -0.39%
Henry Schein Inc. (HSIC) $70.06 -0.36%
Amgen Inc. (AMGN) $260.40 -0.35%
Mondelez International Inc. (MDLZ) $58.60 -0.24%
Fastenal Co. (FAST) $46.73 -0.13%
Kraft Heinz Co. (KHC) $36.49 -0.07%