US Equities Close Mixed as Traders Evaluate Corporate Earnings

US stock indexes ended mixed on Tuesday as investors assessed the latest corporate earnings reports.

The Nasdaq Composite gained 0.2% to 18,573.1, while the S&P 500 dipped 0.1% to 5,851.2. The Dow Jones Industrial Average remained mostly unchanged at 42,924.9. Consumer staples were the top-performing sector, while industrials posted the largest decline.

Philip Morris International (PM) led the S&P 500, rising nearly 11% after reporting stronger-than-expected third-quarter results and raising its full-year earnings forecast due to robust demand for smoke-free products. General Motors (GM) was the second-best performer, gaining 9.8% after exceeding quarterly earnings expectations and raising its 2024 earnings guidance.

On the downside, Genuine Parts (GPC) saw its shares fall nearly 21%, the worst performer on the S&P 500, after the company cut its full-year earnings outlook following a third-quarter miss. Verizon Communications (VZ) fell 5%, the worst performer on the Dow, despite surpassing earnings expectations, as its revenue came in below forecasts.

In bond markets, the yield on the US 10-year Treasury note increased 2.4 basis points to 4.21%, while the two-year yield rose one basis point to 4.03%.

The International Monetary Fund (IMF) updated its economic outlook, projecting stronger-than-expected growth for the US economy this year but predicting a slowdown for China. The IMF also noted risks to commodity markets due to escalating geopolitical tensions. Global inflation is forecast to reach 3.5% in the fourth quarter of next year, slightly below pre-pandemic levels. IMF Economic Counsellor Pierre-Olivier Gourinchas said the fight against rising prices is “largely won.”

In economic data, manufacturing activity in the US Mid-Atlantic region improved more than anticipated in October but remained in contraction territory, according to the Federal Reserve Bank of Richmond.

West Texas Intermediate crude oil rose 2.4% to $72.24 per barrel. According to D.A. Davidson, oil prices steadied as the US continued efforts for a Middle East ceasefire and amid concerns over slowing demand in China.

Gold climbed 0.9% to $2,762.40 per ounce, while silver advanced 2.7% to $35 per ounce.