Stock market today: Dow falls, Nasdaq and S&P 500 rise amid fresh wave of earnings, jobs data

10/29/2024 22:36
Stock market today: Dow falls, Nasdaq and S&P 500 rise amid fresh wave of earnings, jobs data

Investors absorbed a fresh rush of earnings and waited for Alphabet to lead in the week's Big Tech results,

In This Article:

US stocks traded mixed on Tuesday as investors digested new data on job openings and absorbed a fresh wave of earnings ahead of Alphabet's (GOOG, GOOGL) results.

The Dow Jones Industrial Average (^DJI) fell around 0.2% by mid-morning trading while the benchmark S&P 500 (^GSPC) rose roughly 0.1% after initially opening the day lower. The tech-heavy Nasdaq Composite (^IXIC) also recouped earlier losses to rise around 0.4%.

New data from the Bureau of Labor Statistics released Tuesday showed there were 7.44 million jobs open at the end of September, a decrease from the 7.86 million seen in August. August's figure was revised lower from the 8.04 million open jobs initially reported.

Investors have been closely watching for signs of further cooling in the labor market ahead of the Federal Reserve's next interest rate decision on Nov. 7. Updates on inflation and the jobs market later in the week will also be key in determining Fed policy.

In the meantime, earnings are at the forefront of what's shaping up to be a crucial week for markets.

Alphabet's results, due after the bell, will be closely watched as a harbinger of whether Big Tech's huge AI investments are delivering a payoff. The Google parent is the first of five "Magnificent Seven" megacaps due to report over the next three days, with the outcome seen as driving the direction of stocks to kick off November.

Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards

McDonald's (MCD) posted a third quarter revenue beat, thanks to a rise in US sales in the face of worries about a recent E.coli outbreak. The busiest week of earnings season is revving up, with PayPal (PYPL) and Pfizer (PFE) reporting results before the bell. AMD (AMD), Chipotle (CMG), and Visa (V) will report alongside Alphabet after the market close.

Meanwhile, the US presidential election is injecting some uncertainty into markets in the final fierce days of campaigning. Trump Media & Technology Group stock (DJT) ticked higher following after a brief trading halt earlier in the session. Shares are set to build on Monday's 21% gain following Donald Trump's weekend rally in New York.

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  • Alexandra Canal

    Bitcoin hovers just below $72,000 per token

    Bitcoin prices (BTC-USD) rose around 5% on Tuesday to surpass a key technical level and hover just below $72,000 per token, the highest since early June.

    The moves come as US spot bitcoin ETFs posted $472.6 million in inflows on Monday, extending gains seen last week.

    Crypto-related stocks also rose in tandem, with Mara Holdings (MARA), MicroStrategy (MSTR), and Riot Blockchain (RIOT) all gaining, jumping roughly 2%, 1%, and 4%, respectively.

  • Alexandra Canal

    McDonald's E. coli outbreak won't have material impact, company says

    McDonald's beat earnings expectations in the third quarter, but Wall Street remains hyper-focused on its recent E. coli outbreak. Shares are up a little over 1% in early trading.

    Yahoo Finance's Brooke DiPalma has more:

    Since Q3 ended on Sept. 30, the effects of the outbreak will be seen in Q4 results. Executives indicated it won't have a material impact on the business.

    So far, the E. coli outbreak has left 75 people infected and 1 person dead across 13 states. On Sunday, McDonald's announced it will resume distribution of fresh beef patties this week to all restaurants after the Colorado Department of Agriculture ruled out that Quarter Pounder patties were the source of the E. coli contamination, leaving onions as the potential culprit.

    Burger King (QSR) preventively removed onions from 5% of its restaurants despite no reported illnesses. Yum! Brands (YUM) also removed fresh onions from select Taco Bell, Pizza Hut, and KFC restaurants "out of an abundance of caution," a spokesperson told Yahoo Finance.

    McDonald's CEO Chris Kempczinski said he believes the "swift and decisive actions" McDonald's took should help reinforce consumer trust.

    Investor sentiment, though, is mixed as bears home in on "uncertainty" around the "food safety fallout," per a note from TD Cowen analyst Andrew Charles before the results. Meanwhile, bulls are encouraged by the relaunch of the McRib in December, a new national value platform in January, and chicken strips and wraps coming in May or June 2025.

  •  Josh Schafer

    Job openings fall more than expected in September

    Job openings fell more than expected in September. The data comes as investors closely watch for signs of further cooling in the labor market ahead of the Federal Reserve's next interest rate decision on Nov. 7.

    New data from the Bureau of Labor Statistics released Tuesday showed there were 7.44 million jobs open at the end of September, a decrease from the 7.86 million seen in August.

    August's figure was revised lower from the 8.04 million open jobs initially reported. Economists surveyed by Bloomberg had expected the report to show 8 million openings in September.

    Also in Tuesday's data, the quits rate a sign of confidence among workers, fell to 1.9% in September down from the revised 2% seen in August. Meanwhile, the Job Openings and Labor Turnover Survey (JOLTS) showed 5.55 million hires were made during the month, up from 5..43 million seen in August. The hiring rate hit rose slightly to 3.5% in September, up from the 3.4% seen in August.

  • Laura Bratton

    Ford stock drops 7% after profit forecast disappoints

    Ford Motor (F) stock dropped over 9% early Tuesday after the automaker lowered its full-year profit forecast the day before, citing high warranty costs and supplier disruptions.

    Ford brought down its full-year profit forecast, with the automaker now seeing 2024 adjusted EBIT "to be about $10 billion," the lower end of its previous projection of $10 billion to $12 billion.

    The automaker said "supplier disruptions," in part due to the affect of hurricanes on the southeastern US, impacted sales of its Ford Pro and Ford Blue vehicles.

    Additionally, "costs, especially warranty, has held back our earnings power, but as we bend that curve, there is significant financial upside for investors," Ford CEO Jim Farley added on the analyst conference call.

    Ford shares are still up more than 3% from last year, when a strike by the United Auto Workers union cost the company an estimated $1.3 billion.

    Meanwhile, rival General Motors (GM) stock is up nearly 8% from last week as the company raised its profit forecast for the third time this year during its third quarter earnings report last week.

    Read the full story here.

  • Alexandra Canal

    DJT stock briefly halted, extends gains

    Trump Media & Technology Group stock (DJT) was briefly halted in early trading on Tuesday after shares extended their five-week surge, rising around 10% shortly after the opening bell. The stock moves come as investors bet on improved chances that Donald Trump will win the November presidential election.

    Shares closed up more than 21% on Monday, following the former president and Republican nominee's highly criticized rally at Manhattan's Madison Square Garden (MSG) over the weekend. At current levels, the stock is trading at its highest level since May, with shares up about 270% from their September lows.

    Trump maintains a roughly 60% interest in DJT. At current levels of above $52 a share, Trump Media boasts a market cap of about $10.3 billion, giving the former president a stake worth around $6.2 billion.

    Read more here.

  • Alexandra Canal

    Stocks open lower

    US stocks opened lower on Tuesday as investors digested a fresh crop of earnings and awaited results from Alphabet (GOOG, GOOGL), due after the bell.

    The Dow Jones Industrial Average (^DJI) fell about 0.3%, coming off a sharp gain as all the gauges closed higher. The benchmark S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) also each dropped around 0.3% at the market open.

  • Dani Romero

    Home prices record slowest annual gain since 2023.

    US home prices hit another record high in August, but the pace of price increases is easing.

    On an annual basis, the S&P Case-Shiller National Home Price Index increased 4.2%, down from the 4.8% gain seen in July.

    “Home price growth is beginning to show signs of strain, recording the slowest annual gain since mortgage rates peaked in 2023,” Brian D. Luke, S&P's head of commodities, real & digital assets, said in a press release.

    Prices rose 0.3% over the prior month in August on a seasonally adjusted basis. This marked the 15th consecutive monthly increase and an all-time high for the index.

    The index tracking home prices in the 20 largest metropolitan areas gained 0.4% in August from July, higher than Bloomberg consensus estimates 0.2% monthly increase. Meanwhile, the 20-city index jumped 5.2% compared to last August.

    “As students went back to school, home price shoppers appeared less willing to push the index higher than in the summer months. Prices continue to decelerate for the past six months, pushing appreciation rates below their long-run average of 4.8%,” Luke added.

  • Laura Bratton

    Earnings roundup: McDonald's, BP, PayPal stocks fall while Pfizer and HSBC rise on Q3 results

    Another batch of companies reported earnings Tuesday morning. Here's a quick rundown:

    Here’s a look at how the companies performed this morning relative to Wall Street’s expectations, using Bloomberg consensus estimates:

    Novartis: Adjusted basic earnings per share of $2.06 vs. $1.94 expected, revenue of $12.82 billion vs. $12.68 billion expected

    McDonald’s: Adjusted diluted earnings per share of $3.23 vs. $3.20 expected, revenue of $6.87 billion vs. $6.81 billion expected

    HSBC: Adjusted diluted earnings per share of $0.34 vs. $0.30 expected, net revenue of $17.21 billion vs. $16.14 billion expected

    Pfizer: Diluted earnings per share of $1.06 vs. $0.64 expected, revenue of $17.7 billion vs. $15.08 billion expected

    BP: Adjusted diluted earnings per share of $0.14 vs. $0.13 expected, revenue of $47.25 billion vs. $46.16 billion expected

    PayPal: Adjusted diluted earnings per share of $1.20 vs. $1.07 expected, revenue of $7.85 billion vs. $7.89 billion expected

    Google (GOOG) parent Alphabet, AI chipmaker Advanced Micro Devices (AMD), Visa (V), and Chipotle (CMG) are among the round of companies set to report earnings after the bell.

  • Jenny McCall

    Good morning. Here's what's happening today.

    Economic data: S&P CoreLogic 20-city year-over-year NSA, (August); Conference Board consumer confidence, (October); JOLTS job openings, (September); Dallas Fed services activity, (October)

    Earnings: Alphabet (GOOGL, GOOG), AMD (AMD), BP Oil (BP), Chipotle (CMG), Crocs (CROX), McDonald's (MCD), JetBlue (JBLU), PayPal (PYPL), Pfizer (PFE), Reddit (RDDT), Royal Caribbean Group (RCL), Snap (SNAP), Sofi (SOFI), Visa (V), D.R. Horton (DHI)

    Here are some of the biggest stories you may have missed overnight and early this morning:

    McDonald's beats on revenue as US sales shine

    CEOs are saying this is as bad as it gets for their earnings

    Weather-hit jobs report shows truth of economic data

    Pfizer raises profit forecast after beating Q3 estimates

    Apple exports $6B of iPhones from India in big China shift

    Boeing raises $21B in capital hike to boost cash pile

    Trump calls Biden's chips act 'so bad.' Harris cites its good work.

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