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US stocks recovered from earlier session lows in late trading on Tuesday as investors digested a recent bond market sell-off and the next wave of earnings reports.
The S&P 500 (^GSPC) hugged the flatline after dropping about 0.2% earlier in the trading day. Meanwhile, the Dow Jones Industrial Average (^DJI) and the tech-heavy Nasdaq Composite (^IXIC) each ticked up around 0.1% and 0.2%, respectively.
Stocks are treading carefully amid growing doubts that the Federal Reserve will continue to cut rates aggressively — or even hold steady in November. Strength in the economy, cautious Fedspeak, and concerns about the fiscal impact of an election win by Republican nominee Donald Trump are factors in play.
Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards
Amid the uncertainty, the 10-year Treasury yield (^TNX) steadied around 4.2% after Monday's sharp gains helped push it above that level for the first time since July. The bond selling has weighed on rate-sensitive stocks such as real estate, with rising yields typically a catalyst for stock drawdowns.
On the earnings front, General Motors (GM) raised its guidance for the third time this year as upbeat EV sales helped deliver a quarterly profit and revenue beat. GM shares were up more than 10%. Elsewhere in earnings, GE Aerospace (GE) fell over 8% and Verizon (VZ) shares fell around 5% on mixed third quarter reports.
At the same time, anticipation is building for earnings from Tesla (TSLA) on Wednesday as Wall Street debates whether the "Magnificent Seven" tech megacaps will lead stocks' next leg higher.
Despite higher yields, gold (GC=F) prices rose, on track to top Monday's record high. The gains came as investors sought safety with the US presidential election looming and Middle East tensions still on the rise.
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Walmart announces same-day prescription delivery
Yahoo Finance's Anjalee Khemlani reports:
Walmart (WMT) announced Tuesday it will offer same-day prescription delivery services in six states, with a plan to roll out to all 49 states in which it operates a pharmacy by January.
The first six states are Arkansas, Missouri, New York, Nevada, South Carolina, and Wisconsin. North Dakota is the only state where Walmart doesn't operate a pharmacy.
The move brings Walmart into the competitive field of online pharmacies and same-day retail deliveries, with players like Amazon (AMZN) Pharmacy, Walgreens (WBA), and CVS (CVS).
The new service is being integrated into the existing Walmart delivery service, where patients can add their prescription to their cart along with other items — a key differentiator, according to Walmart — and schedule a delivery time. It will apply any new or existing prescriptions and insurance coverage as if the patient were coming to the store to pick it up, Walmart said in its announcement.
Shares moved about 2% higher in late afternoon trading.
Trump Media & Technology Group stock (DJT) hit its highest level since July on Tuesday, rising as much as 10% as investors bet on former President Donald Trump's improved odds of winning the November election in exactly two weeks.
Shares in the company, the home of the Republican nominee's social media platform Truth Social, have seen a recent surge as both domestic and overseas betting markets shift in favor of a Trump victory, with prediction sites like Polymarket, PredictIt, and Kalshi all showing Trump's presidential chances ahead of those of Democratic nominee and current Vice President Kamala Harris.
National average polls, however, show both candidates in an incredibly tight race, especially in key battleground states like Pennsylvania and Michigan, which are likely to decide the fate of the election.
Trump Media went public on the Nasdaq in late March after merging with special purpose acquisition company Digital World Acquisition Corp. But the stock has been on a bumpy ride since, with shares oscillating between highs and lows as the moves have typically been tied to a volatile news cycle.
Over the past six months, the stock has been off around 8% — a massive improvement on the heels of the rally after shares hit their lowest point last month.
Trump maintains a roughly 60% interest in DJT. At current levels of above $33 a share, Trump Media boasts a market cap of about $6.7 billion, giving the former president a stake worth around $4 billion. Right after the company's public debut, Trump's stake was worth just over $4.5 billion.
Sector check: Energy leads, Information Technology lags
Energy (XLE), Consumer Staples (XLP), and Real Estate (XLRE) led Tuesday's sector action, with markets retreating for their second straight session as traders priced in a higher for longer policy stance from the Federal Reserve.
Oil prices were a standout, with WTI crude (CL=F) rising about 3% to trade above $72.50 a barrel. Brent crude (BZ=F), the international benchmark, rose more than 2% to trade just above $76 a barrel.
Information technology (XLI), Materials (XLB), and Consumer Discretionary (XLY) served as the day's biggest laggards.
Elections offer 'high' level of uncertainty to global economic outlook: IMF
Yahoo Finance's Jennifer Schonberger reports:
The International Monetary Fund said Tuesday that the global economy is on pace for a soft landing this year and 2025 but elections around the world introduce a "high" level of uncertainty to that outlook due to potential changes in trade and fiscal policy.
The IMF said an increase in global tariffs could exacerbate trade tensions, disrupt global supply chains, and weigh down medium-term growth prospects by limiting positive spillovers from innovation and technology transfer that once fueled growth in emerging markets and developing economies.
Markets are debating a higher for longer interest rate stance from the Fed
Treasury yields spiked over the last month amid a slew of stronger-than-expected economic data and signs that inflation's path down toward the Fed's 2% goal may take longer than initially hoped.
The data has pushed the 10-year Treasury yield (^TNX) up nearly 50 basis points in the past month to hover near 4.2%, its highest level since July. As our graph below shows, the debate among investors appears to be more about how quickly the Fed will reduce interest rates over the next year than whether the central bank will cut once again in November.
As of Tuesday morning, markets were still pricing in a roughly 88% chance that the Fed cuts rates at its November meeting, per the CME FedWatch Tool. But by the end of next year, markets see the Fed likely making one less cut than was priced in on Oct. 4 and two less cuts than markets were projecting on Sept. 18, the day the Fed slashed rates by half a percentage point.
General Motors raises profit forecast, shares soar
General Motors (GM) stock rose more than 7% on Tuesday morning as the automaker boosted its profitability guidance for a third time this year.
Yahoo Finance's Pras Subramanian reports:
For the quarter, GM reported revenue of $48.78 billion, easily topping estimates of $44.69 billion per Bloomberg consensus, and higher than the prior quarter's nearly $48 billion. GM's Q3 revenue was also 10.5% higher than a year ago.
The company booked adjusted earnings per share of $2.96, far outstripping expectations of $2.44. It reported EBIT-adjusted profit of $4.115 billion, up 15.5% from a year ago, with EBIT-adjusted margin climbing to 8.4% from 8.1% year over year.
Stocks slide at the open
US stocks retreated on Tuesday as investors digested a recent bond market sell-off and braced for the next wave of earnings reports.
The S&P 500 (^GSPC) dropped more than 0.5%. The Dow Jones Industrial Average (^DJI) dropped more than 120 points, or 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) slid roughly 0.6%.
Companies reporting earnings Tuesday morning
A host of companies reported third quarter earnings Tuesday morning.
The biggest premarket stock movers were GE Aerospace (GE), Verizon (VZ), 3M (MMM), and Philip Morris (PM). GE Aerospace stock fell over 5% and Verizon shares fell around 3% on mixed third quarter reports. Paint company Sherwin Williams (SHW) fell 4% after an earnings miss. Lockheed Martin (LMT) and Moody’s (MCO) fell less than 1% despite strong results.
Meanwhile, Philip Morris jumped 3% after raising its guidance thanks to higher cigarette prices as well as its surging smoke-free business. General Motors (GM) rose 1.4% and tech and manufacturing conglomerate 3M jumped 6% after earnings beats.
Here are more details about the companies’ performances (expectations according to Bloomberg consensus estimates):
Good morning. Here's what's happening today.
Economic data: Philadelphia Fed Non-Manufacturing Index (October); Richmond Fed Manufacturing & Business Conditions Index (October)
Earnings: 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 overnight and early this morning:
GM posts Q3 earnings beat, raises profit forecast again
Nvidia plans to invest in Thailand as SE Asia becomes AI hub
ASML: Growth in 2026, US-China tensions to persist
Bullish Citi hikes 3-month gold price outlook to $2,800
Trump tariffs: How big business could escape 'blanket' duties
