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Dow closes 200 points higher to end 4-day losing streak, as strong earnings lift stocks: Live updates

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Stocks rose Tuesday as investors focused on a fresh slate of earnings reports, and traders monitored the latest moves in Treasury yields.

The Dow Jones Industrial Average gained 204.97 points, or 0.62% to close at 33,141.38. The S&P 500 added 0.73% to finish the session at 4,247.68, and the Nasdaq Composite climbed 0.93% to 13,139.87.

Coca-Cola reported earnings and revenue that topped estimates, sending the stock up 2.9%. Spotify, meanwhile, popped 10% after the audio streaming giant posted third-quarter results that beat expectations.

General Motors shares ticked down 2.3% after the company pulled its full-year outlook amid rising costs due to the United Auto Workers union strikes. The automaker did post better-than-expected third-quarter results.

Alphabet and Microsoft are among companies posting results after the market closes. Other tech names reporting this week include Amazon and Meta.

But even if the roster of tech names reporting earnings this week beat Wall Street expectations, valuations for the broader field of these firms remain too high, according to Bahnsen Group chief investment officer David Bahnsen.

"No matter what results we see from big tech earnings this week, the results won't justify their outlandish valuations," he said. "Even with the declines in big tech stock prices over the past three months, big tech stocks are still too expensive and are priced for perfection and then some, and that's a dynamic that is not likely to end well."

Around 150 S&P 500 companies are slated to report this week. Thus far, the season is off to a solid start. Roughly 23% of S&P 500 companies have already reported earnings, and 77% of them have posted earnings surpassing analysts' expectations, according to FactSet.

Stocks close higher

Stocks closed higher on Tuesday as investors took in the latest batch of corporate earnings.

The Dow Jones Industrial Average added 204.97 points, or 0.6% to close at 33,141.38. The S&P 500 climbed 0.7% to finish the session at 4,247.68 while the tech-heavy Nasdaq Composite gained 0.9% to end at 13,139.87.

— Brian Evans

Verizon stock soars more than 9% after third quarter earnings beat

Shares of telecommunication giant Verizon climbed more than 9% after the company reported third-quarter results that beat Wall Street estimates. The move is the largest gain for Verizon stock since October 2008.

The company beat on the top and bottom line in the third-quarter, reporting an adjusted $1.22 per share on $33.34 billion in revenue against estimates of $1.18 and $33.25 billion from analysts polled by LSEG.

— Brian Evans

Energy stocks lag

Energy stocks bucked the S&P 500's leg up on Tuesday.

While the broad index rose about 0.5%, the energy sector fell 1%. It was the only of the S&P 500's 11 sectors to trade down in the session.

Hess, Halliburton and Schlumberger led the sector down with losses of more than 2% each. The best performer in the sector, EQT, was up just 0.4%.

On the other end of the spectrum, utilities was the best performing sector in the session, rallying 2.6%. NextEra gave upward momentum to the sector with a gain of more than 7%. AES and Edison were the next best performers, with both up nearly 4%.

— Alex Harring

Third-quarter earnings scorecard

Here's how third-quarter earnings season is stacking up with about 23% of the S&P 500 having reported results so far and releases from Alphabet and Microsoft on deck for after the close.

Of the companies that have reported results, 77% have beaten earnings expectations, while 60% have surpassed revenue expectations, while nearly 69% have topped sales expectations, per FactSet data.

Year over year, earnings are expected to decline by about 0.2%, while revenues are expected to rise 1.9%, based on the blended growth rate.

— Samantha Subin

Investors should prepare higher rates, Morgan Stanley's Brian Weinstein says

Investors should prepare for a new normal defined by higher interest rates, said Brian Weinstein, head of fixed income at Morgan Stanley Investment Management.

"I do think we're getting closer to that tipping point where growth is impacted by higher rates," Weinstein said Tuesday on CNBC's "The Exchange."

He recommended that investors own some Treasury Inflation-Protected Securities (TIPS), as well as some 5- and 7-year interest rates.

— Sarah Min

Wells Fargo Securities' Mike Mayo names top bank picks

Wells Fargo Securities' Mike Mayo said he expects large-cap banks will bottom soon, and are a buying opportunity. Bank stocks have come under pressure this year from higher interest rates, with the Financial Select Sector SPDR Fund (XLF) down by 6%.

"I think we're in the middle of the seventh inning, maybe the eighth inning, for these downward earnings revisions," Mayo, the head of U.S. large-cap bank research at Wells Fargo Securities, said Tuesday on CNBC's "Halftime Report." "And once that last earnings revision is done, I think that will set up the floor for the banks."

His top pick JPMorgan Chase & Co. is higher by just 5% in 2023. His second pick Citigroup has sold off by 14% this year.

— Sarah Min

Josh Brown: 'We have a little bit of an earnings problem'

Investor Josh Brown is troubled by this earnings season that has yet to reward the broader market outside the tech sector.

'We have a little bit of an earnings problem," Brown said Tuesday on CNBC's "Halftime Report." "If you pull out tech, this is another negative quarter overall for earnings."

In fact, S&P 500 earnings are on pace to have dropped 0.18% in the third quarter, according to a FactSet estimate that accounts for reports that have already come in and forecasts for the ones that haven't.

"The misses are being punished a lot more than the beats are being rewarded," Brown added. "That's just not a great environment for investors."

— Sarah Min

McDonald's heads for fourth straight losing month, a first since 2016

McDonald's is on track to end October lower in what would be its fourth straight down month — a length not seen since 2016.

The fast food chain is set to end the month down 2.7%. That follows a drop of 6.3% in September and losses of 1.8% and 4.1% in July and August, respectively.

If the stock stays down on the month, it would mark the first time shares have fallen for four consecutive months since 2016. During that year, the stock fell every month between May and October.

The stock's challenges in recent months reflect broader concerns about the state of the economy and the consumer. Shares have slid 2.7% since the start of 2023.

— Alex Harring

What a potential Nvidia Arm-based PC chip could mean for the industry

Nvidia's plan to potentially launch personal computing chips from Arm Holdings could have some positive readthroughs for the AI darling, according to Wall Street analysts.

Reuters reported Monday that both Nvidia and Advanced Micro Devices plan to create chips with the Britain-based company that would run Microsoft Windows as soon as 2025.

While information regarding the deal appears limited, Deutsche Bank analyst Ross Seymore expects the news to bode well for Arm and "further endorses the share-gain narrative." It also is a sign of growing competition in the processing space that should continue to grow.

Goldman Sachs analyst Toshiya Hari sees positive implications for AI darling Nvidia, although the contributions to earnings power appears limited. If the company can attain 5% market share, then he projects a 1% to 2% uptick in 2025 EPS, when many analysts estimate the PC central processing unit market will hit $35 billion.

Heightened competition in the market could, however, have some major repercussions for Intel — the current stalwart in the space.

"Though 'AI for PCs' could incentivize a faster upgrade cycle, we expect increased competition to offset any goodness for INTC," said Bank of America analyst Vivek Arya.

Meanwhile, Goldman's Hari views the read-through as mixed for AMD, noting that the new chip could potentially come at the cost of its x86-based business.

— Samantha Subin

Crypto equities get a bitcoin boost

Crypto related equities benefited on Tuesday from bitcoin's 10% rise that led the cryptocurrency to briefly touch the $35,000 mark for the first time this year.

Meanwhile, crypto exchange and services company Coinbase gained 10%, while other bitcoin trading platforms got a smaller lift. Robinhood was up more than 2% and Block, which operates Cash App, added 3.5%.

Elsewhere, bitcoin proxy Microstrategy climbed 13%. The biggest mining stocks rose double digits, with Marathon Digital gaining 17% and Riot Platforms rising 12%.

— Tanaya Macheel

Meta stock falls after lawsuit from 42 state attorneys general

Meta stock fell slightly on Tuesday following news that 42 state attorneys general was suing the company over addictive features that they allege deliberately target children.

Shares pulled back about 1% in midday trading. The AGs assert that Meta purposely designed its Facebook and Instagram products to maintain young user attention for longer and to keep them coming back through the design of company algorithms.

— Brian Evans

Trading volumes in SPY hit abnormally high levels last week, Strategas says

Trading volumes in a key ETF spiked last week to levels that could be an early sign of an exhaustion in selling, according to Todd Sohn, ETF strategist at Strategas.

Sohn said in a note to clients on Tuesday that the SPDR S&P 500 ETF Trust (SPY) had two unusually high volume days last week with more than $50 billion of value changing hands in each session. Those high volume periods often coincide with at least a short-term bottom in the market, though it doesn't mean the market can't make new lows in the coming months.

"Similar to recent spikes within long duration (TLT), equity ETF volumes are also escalating - SPY posted back-to-back $ volume days above its 95th percentile accompanied by an escalation of inverse equity ETF trading. While these aren't strictly 'buy signals,' they at least reflect a fragile backdrop – we'll be looking to see if this is accompanied by other stress markers, namely put volume and the VIX curve," the note said.

— Jesse Pound

See the stocks making the biggest moves midday

These are some of the stocks making notable moves in midday trading Tuesday:

  • Spotify — Shares rallied more than 10% after the streaming company posted a surprise profit in the third quarter, its first quarterly profit in more than a year.
  • Coca-Cola — The soda maker added 3.1% after beating analyst expectations in the quarter. 
  • General Electric — The industrial stock popped 7.5% after beating Wall Street expectations on both lines for the quarter. 

See the full list here.

— Alex Harring

Earnings this week could show a return to growth after a slow start to the season, UBS says

UBS expects the forthcoming slate of quarterly results this week from tech behemoths including Amazon and Meta could accelerate a so far "slow start."

"We believe much of the earnings improvement will be driven by the seven largest tech and growth companies, the 'Magnificent 7'," UBS global wealth management chief investment officer Mark Haefele wrote on Tuesday.

He added that results from tech companies could "confirm our view that profits will return to growth after three quarters of year-over-year declines." Haefele also said the firm is closely eyeing improvements in cloud optimization and artificial intelligence segments of tech firms.

— Brian Evans

Dimon criticizes central banks for forecasting errors

JPMorgan Chase CEO Jamie Dimon on Tuesday criticized central banks for providing poor guidance on the economy as he warned of unpredictable waters ahead.

""Prepare for possibilities and probabilities, not calling one course of action, since I've never seen anyone call it," Dimon said during a panel discussion at the Future investment Initiative summit in Riyadh, Saudi Arabia. "I want to point out the central banks 18 months ago were 100% dead wrong."

Also during the discussion, the head of the largest U.S. bank by assets said he favors ESG principles but said governments have taken a "whack-a-mole" approach. "So we better get our act together," he said.

—Jeff Cox

Analysts stay bullish on Google ahead of earnings

Wall Street is optimistic ahead of Google's quarterly earnings announcement Tuesday as the tech giant's advertising revenue growth shows signs of recovery. 

Google has invested heavily in generative artificial intelligence throughout the year, such as through its Bard AI platform, its competitor to ChatGPT. The company also unveiled its AI-powered platform Search Generative Experience, which marks one of the largest changes to its search engine. 

Shares have rallied about 12% since it reported its second-quarter earnings in late July. That has outpaced the S&P 500′s decline of about 7.5% over the same period. It is one of the best-performing large-cap tech names of 2023, up 55.2%.

The company will post its third-quarter results Tuesday after the bell.

To read more about what analysts forecast for the company's earnings, click here.

— Hakyung Kim

Spotify shares jump 10% after surprise profit

Spotify shares jumped 10% on Tuesday after the company reported a surprise profit for the third quarter — its first quarterly profit in a year and a half — as price increases and cost-cutting measures took hold.

Shares have more than doubled so far this year, up roughly 112% for 2023.

The Swedish music streaming giant posted a profit of 65 million euros, driven by "lower marketing spend and lower personnel costs and related costs." Earlier this year, Spotify laid off 200 people, or 2% of its workforce, as part of a strategic change in its podcasting unit.

— Drew Richardson

Shares of Google, Microsoft climb ahead of quarterly results

Shares of tech giants Microsoft and Google-parent company Alphabet ticked higher Tuesday ahead of quarterly results due out after the closing bell.

Alphabet stock added 1.6% while Microsoft climbed about 0.4%.

Wall Street is watching for a return to revenue growth in the third-quarter for Alphabet, and better insight into artificial intelligence investments from Microsoft's results.

— Brian Evans

Ark Innovation ETF on pace for best day since August

The ARK Innovation ETF (ARKK) has rallied in Tuesday morning trading, putting the fund on track to post its best session since late August.

The Cathie Wood-run ETF was last up 3.8%. It last had a better day on Aug. 29, when the fund added 5.4%.

Coinbase led the ETF higher with a gain of more than 14%. 2U followed, rallying more than 11%.

All stocks in the fund traded higher in the session.

— Alex Harring, Gina Francolla

Stocks open higher

Stocks opened higher on Tuesday with investors focused on the forthcoming slate of big tech earnings including results from Alphabet and Microsoft due out after the closing bell.

The Dow Jones Industrial Average popped 178 points, or 0.5%. The S&P 500 and Nasdaq Composite added 0.5% each.

— Brian Evans

Stocks making the biggest moves premarket: Spotify, RTX, Coca-Cola and more

Check out the companies making headlines before the bell.

  • General Motors — General Motors shares were up more than 1% in the premarket after the automaker posted third-quarter earnings and revenue that beat analyst expectations. That said, GM did pull its full-year outlook, citing rising costs from the United Auto Workers union strikes.
  • Spotify — Shares shed 2.5% in early morning trading, despite Spotify's third-quarter earnings topping expectations. Revenue matched estimates, and the streaming giant said it expects total monthly active users to top 600 million in the fourth quarter. Bank of America called the stock's fall "surprising."
  • RTX — The aerospace and defense company soared 8.1% after reporting higher-than-expected earnings and revenue, compared to forecasts from LSEG. 

Read here for the full list.

— Pia Singh

General Electric shares pop after earnings beat, higher profit outlook

Shares of General Electric jumped 5.4% in early morning trading after the company's earnings and revenue for the third quarter came out higher than Wall Street's expectations. 

The industrial conglomerate reported adjusted revenue of $16.5 billion and 82 cents per share in earnings, while analysts polled by FactSet had forecast $15.46 billion in revenue and earnings of 56 cents per share. The company also lifted its full-year guidance on increased demand for its aerospace business.

General Electric also announced that it expects to spin off GE Vernova, which will be listed on the NYSE under the ticker "GEV," and launch GE Aerospace in the beginning of Q2 of 2024, subject to final approval from the GE board and other conditions.

— Pia Singh

Coca-Cola earnings beat, shares rise

Coca-Cola reported adjusted third-quarter earnings of 74 cents per share on revenue of $11.91 billion. Analysts polled by LSEG expected a profit of 69 cents per share on revenue of $11.44 billion.

The company also raised its outlook, as volume grows despite higher prices. Shares were up more than 1%.

— Fred Imbert

GM earnings beat expectations, but automaker pulls full-year outlook

General Motors shares were up more than 1% in the premarket after the automaker posted third-quarter earnings and revenue that beat analyst expectations.

The company earned an adjusted $2.28 per share on revenue of $44.13 billion. Analysts polled by LSEG expected a profit of $1.88 per share on revenue of $43.68 billion.

That said, GM did pull its full-year outlook, citing rising costs from the United Auto Workers union strikes.

— Fred Imbert

Investors piling into stocks through ETFs, BofA says

Bank of America said its clients were net buyers of U.S. equities to the tune of $1 billion. This marks the 12th straight week BofA clients added exposure to stocks. To be sure, those inflows were powered by investors buying ETFs. Single stock investments, on the other hand, suffered their biggest outflows since August.

— Fred Imbert, Michael Blooom

European markets open tentatively higher

European markets opened tentatively higher Tuesday, with investors likely keeping an eye on the latest business activity data out of the euro zone.

The pan-European Stoxx 600 index opened 0.1% higher, with sectors spread across positive and negative territory. Mining stocks led gains with a 1.6% increase, while auto stocks dropped 0.8%.

— Hannah Ward-Glenton

Australia's business activity hits 21 month low; factory activity shrinks faster in October, services also falls into contraction

Australia's business activity fell to a 21-month low in October, according to flash estimates from Juno Bank

The country's composite purchasing manager's index stood at 47.3, down from 51.5 in the month before.

Manufacturing PMI came in at 48.0, a six month low, while services PMI was at 47.6, a 10-month low.

The bank wrote "output was reduced amid lower new orders and a drop in confidence in the [business] outlook, while cost pressures remained elevated."

— Lim Hui Jie

South Korea's producer prices climb at faster rate in October

South Korea's producer price index climbed 1.3% year-on-year in September, a faster pace than the 1% gain seen in August.

This was the second straight month of increase in the PPI, after it decreased for 12 straight months from July 2022 to June and remained in contraction territory until July.

The PPI measures monthly variations in the prices of goods shipped by industrial producers within the domestic market.

— Lim Hui Jie

Japan business activity posts first contraction since December 2022

Japan's business activity contracted in October, the first time since December 2022, according to flash estimates by the au Jibun bank.

The country's composite purchasing managers index came in at 49.9, compared with 52.1 in September.

The drop was mainly due to a sharper fall in manufacturing activity, with the manufacturing PMI showing a faster rate of contraction at 47.6 against September's 48.7.

The bank noted that services activity remained in expansion, but grew at the weakest pace year-to-date "amid reports of worsening economic conditions in October." Services PMI stood at 51.1, compared with September's 53.8.

— Lim Hui Jie

Bitcoin breaks above $35,000 for the first time in more than a year

The price of bitcoin broke through the $35,000 level on Monday night for the first time since May 2022.

The cryptocurrency was last more than 10% higher at $34,611.38, according to Coin Metrics. At about 10:30 p.m. ET it rose as high as about $35,100. The rally brings bitcoin up about 110% from its 2022 low as well as for 2023.

The action came after several days of excitement in the market about the potential for a spot bitcoin ETF in the U.S. pushed bitcoin's price higher over the weekend, leading to short liquidations. Bitcoin has seen about $184.77 million in short liquidations over the past 24 hours, according to crypto data provider CoinGlass.

— Tanaya Macheel

The broader market is approaching an earnings growth inflection, according to Citi

Citi thinks the S&P 500 is on the cusp of an earnings growth inflection, as the market continues to be weighed down by longer-term concerns related to the broader economic environment.

"There is no doubt that 2024 recession risk remains a U.S. equity market overhang," analyst Scott Chronert said in a recent note. "Our view continues to emphasize that earnings risk may be less than typical relative to prior recessions. Further, recessions usually lead to interest rate relief. This can set up for valuation support."

Current estimates still point to flat growth expectations for the third quarter compared to the same period last year, Chronert said.

The analyst remains constructive on the "fundamental setup" for the S&P 500 headed into 2024, however, saying that even modest earnings beats will lift the market out of a mild earnings recession.

He noted that earnings per share growth in the broader market has been negative for three consecutive quarters, but said that only a modest level of upside surprise is needed to push third-quarter EPS growth into positive territory compared to the previous comparable quarter. If that happens, it would push third-quarter year-over-year growth to roughly 3% and fourth-quarter growth to near 10%, he said.

— Pia Singh

See the stocks moving in extended trading

These are some of the stocks making the biggest moves after hours:

  • Redfin — Shares jumped 12% after the real estate company announced that funds managed by Apollo Capital and affiliates have agreed to commit as much as $250 million through a loan.
  • Cadence Design Systems — The electronic system designer lost about 4% after delivering weak guidance for current quarter earnings per share.
  • KKR Real Estate Finance Trust — The real estate trust added 3.5% after distributable earnings per share notably exceeded expectations in the third quarter.

See the full list here.

— Alex Harring

Stock futures edge higher

Stock futures rose modestly shortly after 6 p.m. ET.

Futures tied to the Dow, S&P 500 and Nasdaq 100 all rose about 0.2%.

— Alex Harring

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