Nasdaq powers rally, stocks rise for third straight session

U.S. stocks rose in Tuesday’s trading as Wall Street digested and looked ahead to corporate earnings from some of the market’s biggest players. The S&P 500 (^GSPC) rose by 1.6%, ending the third straight day the index has been up 1%. The Dow Jones Industrial Average (^DJI) edged higher by […]

U.S. stocks rose in Tuesday’s trading as Wall Street digested and looked ahead to corporate earnings from some of the market’s biggest players.

The S&P 500 (^GSPC) rose by 1.6%, ending the third straight day the index has been up 1%. The Dow Jones Industrial Average (^DJI) edged higher by 1.1%. The technology-heavy Nasdaq Composite (^IXIC) extended gains by 2.3%, a session high.

The jumps continued stocks’ gains from Monday, as the major indices rallied ahead of a slew of third-quarter earnings this week. A rundown from Tuesday’s big earnings action:

  • Coca-Cola (KO) posted earnings before the bell on Tuesday. The Atlanta-based company raised its full-year outlook as quarterly profit and revenue topped expectations.

  • General Motors (GM) stock moved higher after the carmaker topped profit expectations but fell short on revenue.

  • General Electric (GE) profits, meanwhile, fell in its latest quarter as the company plans to cut costs in its renewable-energy business.

  • Microsoft (MSFT) reported its fiscal Q1 results after the bell on Tuesday, topping analyst expectations on the top and bottom line, despite softer cloud revenue. Shares fell in after-hours trading.

  • Alphabet (GOOGL) also posted quarterly results that missed analysts’ expectations on the top and bottom line, as YouTube advertising revenue came up short. Shares fell after hours.

“The pace of earnings reports has really picked up steam and the results this morning have been somewhat lackluster,” Paul Hickey, head portfolio manager for Bespoke’s Wealth Management services, wrote in a note. “Of the nearly 40 reports so far this morning, 64% have exceeded EPS forecasts, and 62% of exceeded revenue estimates. Also slightly more companies have lowered guidance than raised it.”

About one-fifth of companies in the S&P 500 had reported third-quarter results as of last Friday, and 72% of those posted earnings that beat Wall Street expectations, according to FactSet.

Elsewhere in corporate news, shares of Adidas sank lower after the athletic brand ended its partnership with Ye, also known as Kanye West, with “immediate effect.” In a statement on Tuesday, the sportswear maker said it “does not tolerate antisemitism and any other sort of hate speech” and his recent comments were “unacceptable, hateful and dangerous.” The stock is down 66% this year.

Shares of Twitter (TWTR) rose as Elon Musk pledged to close the acquisition by the end of the week. The stock is up 23% this year.

NEW YORK, NEW YORK - OCTOBER 18: Traders work on the floor of the New York Stock exchange during morning trading on October 18, 2022 in New York City. The stock market opened on an upswing with the Dow Jones gaining over 600 points, the S&P 500 jumping 2.20% and the Nasdaq Composite with a gain of 2.6% adding to the gains that began on Monday.  (Photo by Michael M. Santiago/Getty Images)

Traders work on the floor of the New York Stock exchange during morning trading on October 18, 2022 in New York City. (Photo by Michael M. Santiago/Getty Images)

In the commodity markets, Brent crude, the international oil benchmark, fell 1.55% to $83.27 a barrel Tuesday morning. U.S. bond yields fell, with 10-year Treasury dropping to 4.1% as data showed home price growth slowed by the largest amount on record.

Elsewhere, U.K. 10-year government bond yield edged down after Rishi Sunak was formally appointed as the next prime minister.

The U.S. dollar fell on the day but is still perched precariously high vs. the Japanese yen (JPY=X), the Chinese yuan (CNH=X), and the British pound (GBPUSD=X), Yahoo Finance’s Jared Blikre reports, with far-reaching implications for corporate earnings of multinational companies and global risk markets.

On the economic front, consumer confidence waned this month as high borrowing costs and inflation hit household budgets. The consumer confidence index slumped to 102.5 from a revised 107.8 in September, according to data released Tuesday by the Conference Board. Economists surveyed by Bloomberg called for a drop to 105.9.

Overseas, stocks in Hong Kong and mainland China ended the day were unchanged after swinging between losses and gains. On Monday, U.S.-listed Chinese stocks tumbled to their lowest level in nearly a decade, a day after President Xi Jinping secured a third term controlling over the ruling Communist Party.

“The China we are looking at right now, led by Xi Jinping, is one focused more on security. It’s focused more on restructuring the economy so there’s fewer vulnerabilities for the party in terms of reckless credit expansion in the property sector, shadow finance out of control,” Leland Miller, China Beige Book Co-Founder & CEO, told Yahoo Finance Live on Monday.

Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv

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