Market Summary
The S&P 500 Index remained steady on Tuesday, while the Dow Jones Industrial Average rose by +0.47% and the Nasdaq 100 Index dropped by -0.06%. December E-mini S&P futures decreased by -0.05%, and December E-mini Nasdaq futures fell -0.08%.
Corporate Performance
Stock indices closed mixed, with the S&P 500 hitting a one-week high and the Dow reaching a record. Positive corporate developments bolstered the market, notably General Motors, which soared over +14% after revising its annual adjusted EPS forecast. Other gainers included 3M Co (+7%) and RTX Corp (+7%) for similar reasons, and Coca-Cola gained more than +4% after exceeding Q3 EPS expectations.
Sector Reactions
Mining stocks faced a downturn as gold prices plummeted by over -5% and silver declined more than -7% due to long liquidation pressures. Additionally, semiconductor stocks saw weakness, negatively impacting the Nasdaq 100.
Market Influences
Gains were capped as the market digested significant advances from the previous sessions. Attention remains on the US-China trade talks, with President Trump threatening increased tariffs if no deal is reached by November 1. A meeting with Chinese President Xi Jinping is scheduled for next week during the Asia-Pacific Economic Cooperation conference.
US Economic Updates
The October Philadelphia Fed survey recorded a significant drop to a four-month low of -22.2. The ongoing US government shutdown stretches into its fourth week, disrupting market sentiment and delaying crucial economic data, including unemployment claims and the payroll report. If it persists, it could lead to widespread job furloughs and an uptick in unemployment rates, projected to rise to 4.7%.
Earnings Season Focus
This week, the market is paying close attention to Q3 earnings as corporate projections remain positive. According to Bloomberg Intelligence, 85% of S&P 500 companies that have reported so far outperformed expectations. However, year-over-year Q3 profit growth is estimated at +7.2%, the smallest increase in two years, and sales growth is expected to slow to +5.9%.
International Market Trends
Overseas markets saw gains, with the Euro Stoxx 50 reaching an all-time high (+0.10%). China’s Shanghai Composite rose by +1.36%, and Japan’s Nikkei 225 increased by +0.27%.
