Key points:

  • The indices showed mixed movements. Dow Jones and S&P 500 declined, while Nasdaq rose.
  • The tech sector showed positive momentum, with Microsoft leading the way.
  • Investors eagerly await corporate earnings reports and economic data.

The U.S. stock market ended Tuesday’s trading with minor changes. The Dow Jones Industrial Average showed a slight decline, while the S&P 500 also closed in negative territory. However, the Nasdaq Composite posted a small gain.

Investors are awaiting the release of new corporate earnings reports to gain a clearer understanding of the state of the U.S. economy. The trading session saw high volatility.

Microsoft rises, GE Aerospace falls

Almost half of the sectors in the S&P 500 index showed positive momentum during the trading session, with the consumer staples sector leading the gains, up 0.92%.

However, at the corporate level, there were negative trends. Shares of GE Aerospace fell by 9%, despite an upward revision of its 2024 profit forecast. The drop was attributed to ongoing supply chain constraints, which negatively impacted the company’s revenue. This situation put significant pressure on the broader industrial index, which declined by 1.19%.

Nonetheless, the tech sector as a whole showed positive movement, rising by 0.15%. Notably, Microsoft shares rose by 2.08%.

Chuck Carlson, CEO of Horizon Investment Services, noted that the current market volatility is typical during earnings report periods. He also highlighted growing uncertainty around the future trajectory of interest rates.

According to experts, the stock market is expected to remain highly volatile in the coming weeks. Investors will closely monitor the results of the earnings season, new economic data, and the outcome of the U.S. midterm elections. The central bank’s meeting will also be an important event that could significantly impact market sentiment.

Earnings season results for U.S. companies were positive

The stock market showed mixed dynamics at the close of the trading session. Despite positive results from some companies, several major players faced considerable pressure. For example, shares of telecommunications giant Verizon fell by 5.03%, failing to meet analysts’ revenue forecasts for the third quarter. Similarly, 3M came under pressure, losing 2.31%, despite raising the lower end of its adjusted earnings forecast for the year.

At the same time, automotive giant General Motors saw a significant rise in its stock, increasing by 9.81%. The positive movement was driven by the company surpassing analysts’ expectations for the third quarter. In contrast, defense giant Lockheed Martin’s shares dropped by 6.12% following its earnings report.

The housing sector was pressured by rising interest rates. The PHLX Housing Index fell by 3.05%, largely due to a 7.24% drop in PulteGroup shares. Although the company exceeded profit and revenue forecasts, investors expressed concerns about the industry’s prospects amid tighter monetary policy.

Overall, the earnings season results were fairly positive. However, companies sensitive to interest rate fluctuations faced certain challenges. Investors continue to closely monitor the market situation and assess the impact of tighter monetary policy on various sectors of the economy.