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U.S. stocks were flat to slightly higher Tuesday as investors weighed a growing slate of corporate earnings.
What’s happening
-
The Dow Jones Industrial Average
DJIA,
-0.18%
fell 40 points, or 0.1%, to 31,460. -
The S&P 500
SPX,
+0.15%
was up 8 points, or 0.2%, at 3,805. -
The Nasdaq Composite
COMP,
+4.82%
gained 55 points, or 0.5%, to trade at 11,008.
On Monday, the Dow rose 417 points, or 1.3%, while the S&P 500 gained 1.2% and the Nasdaq Composite gained 0.9%.
What’s driving markets
The S&P 500 has climbed four of the last six trading days and ended Monday at its highest level since Sept. 20.
“The market loves symmetry and that huge selloff from the September highs will result in an equal impressive rebound,” said Jani Ziedins of the Cracked Market blog. “Sure, maybe lower prices are ahead of us over the longer term, but never forget the biggest and fastest rallies occur during bear markets, and the last time I checked, this was still a bear market.”
Investors were weighing results from Dow components Coca-Cola Co.
KO,
and 3M Co.
MMM,
as well as General Electric Co.
GE,
Earnings after the close were due from Google parent Alphabet Inc.
GOOGL,
and Microsoft Corp.
MSFT,
See: Big Tech has been an earnings refuge for years, but safety is no longer a sure thing
The economics calendar includes the Conference Board’s measure of consumer confidence, shortly after the market open.
Strategists at Goldman Sachs noted a steepening yield curve, particularly for inflation-protected securities.
Goldman Sachs
“Our market implied U.S. recession probability model also suggests investors are willing to fade recession risk over the next year, possibly helped by a better-than-expected U.S. earnings season so far. The curve steepening and a repricing of cyclicals vs. defensives has driven the implied probability lower to levels roughly in line with the 35% recession odds from our economists,” they said.
Companies in focus
- Coca-Cola shares rose 1.7% after the beverage giant beat third-quarter profit and revenue expectations, as price increases helped offset ongoing cost inflation.
- 3M Co. shares fell 3.1% after the company fell short of revenue estimates and cut its 2022 profit view on economic headwinds, although it delivered stronger-than-expected quarterly results.
- General Electric reported third-quarter profit that fell below expectations while revenue beat, and free cash flow that topped $1 billion to beat forecasts by a wide margin. Shares were up 1.7%.
-
Adidas AG
ADS,
-8.17% ADDYY,
-0.76%
on Tuesday became the latest company to cut ties with the rapper Kanye West over anti-Semitic comments he’s made on social media. Adidas said it would terminate its relationship with West, who is now called Ye, immediately. American depositary receipts for Adidas fell 7.1%.
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