U.S. stocks closed mixed Tuesday, with the Dow rising 218 points on strong earnings from GM, 3M, and Coca-Cola. The Nasdaq dipped as chip and growth stocks weakened. With 87% of S&P 500 companies beating expectations, investor focus shifts to valuations and rate cut prospects amid record-high index levels.
00:00Welcome to our international updates. We're going to start with US stocks that close mixed with the Dow out front on Tuesday as a string of solid earnings lure investors to industrials and capital goods.
00:12Witness in growth and microchip stocks pull the tag later Nasdaq to a nominally lower close.
00:18Third quarter earnings season has shifted into overdrive with corporate giants such as Jeremotos, GE Aerospace, 3M and Coca-Cola boasting generally upbeat results.
00:31But with major US stock indexes hovering near record highs and valuations stretched, upbeat results alone could prove insufficient to sustain investor risk appetite.
00:42I think the market's broadening out here a bit. We've seen earnings now from GM, for instance, and 3M today that have produced upside surprises.
00:54I think the market really is kind of eyeing value in the market right now.
00:59And the MAG7 stocks, you know, have kind of taken a bit of a respite here.
01:04So we're seeing a little bit of a broadening out.
01:05I think expectation of continuation of rate cuts is also driving the market.
01:10That's going to play a big role here.
01:12Going forward, you know, don't fight the Fed.
01:15So I think right now what we're seeing here is earnings over 70 percent or I'm sorry, 70 stocks in the S&P 500 have already reported there's been an 86 percent beat on the earnings per share and an 84 percent beat on revenue.
01:31So earnings have been strong and earnings will continue to drive the market.
01:34So far, 78 of the companies in the S&P 500 have reported.
01:39Of those, 87 percent have beaten Wall Street expectations.
01:44Analysts currently foresee aggregate third quarter S&P 500 earnings growth of 9.2 percent year-on-year, more robust than the 8.8 percent estimate, as it stood on October 1st, according to LSEG data.
01:58The S&P 500 rose 0.22 points to end at 6,735.35 points, while the Nasdaq composite lost 36.88 points to 22,953.67.
02:12The Dow Jones Industrial Average rose 218.16 points to 46,924.74.
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