U.S. stocks showed mixed performance as investors geared up for earnings reports from major tech companies like Alphabet and AMD. The Dow Jones Industrial Average fell slightly, while the Nasdaq Composite and S&P 500 gained. The market is also closely watching economic data that could influence the Federal Reserve's next interest rate decisions and anticipating the upcoming presidential election.
The 10-year U.S. Treasury yield rose as the day began, reaching significant highs. Ford (F) saw a notable decline as its full-year guidance came in at the lower end of expectations. In contrast, VF Corp, the parent company of North Face, experienced a stock surge after reporting better-than-expected earnings.
Earlier, U.S. stocks closed higher, breaking a five-day losing streak for the Dow and marking tech-heavy Nasdaq's eighth gain in nine days. Falling oil prices, despite geopolitical tensions, were welcomed by investors. However, rising Treasury yields continued to limit gains.
The earnings season has entered its busiest week, with five of the seven major U.S. tech giants set to report. Companies like Pfizer, McDonald's, Alphabet (GOOGL, Financial), and AMD will release earnings. Meta Platforms and Microsoft are scheduled to report next, followed by Apple and Amazon.
Trade data from September showed a wider goods trade deficit, with imports rising and exports falling. Wholesale inventories decreased slightly, while retail inventories rose.
The Consumer Confidence Index reached a new high, surpassing expectations as job openings hit a three-and-a-half-year low. This indicated a reduced demand for labor amid economic slowdown concerns.
House prices showed slower growth due to high borrowing costs, with August's annual increase lagging behind July's figures. Rising mortgage rates have pressured the real estate market, leading to a decline in existing home sales.
As the U.S. presidential election nears, market sentiment is tense. Bitcoin has surged past $71,000, attributed to expectations of a Trump victory, which is seen as beneficial for cryptocurrencies. Surveys suggest a Republican win could be favorable for stocks and Bitcoin, while a Democratic victory might ease housing costs slightly.
BlackRock's CEO Larry Fink projects only one Fed rate cut this year, contrary to broader expectations of two, citing persistent inflation concerns.
Several companies also drew attention: Tesla (TSLA) extended its 0% loan incentives, aiming for a record Q4 delivery target. Microsoft and Google are reportedly embroiled in a cloud market dispute, and Apple is advancing M5 chip development.
Among earnings updates, Ford's Q3 profit dropped over 25%, missing expectations, while Pfizer exceeded revenue forecasts. Paypal reported better-than-expected adjusted earnings. Meanwhile, Alibaba's international platform introduced a full-process AI product, and cryptocurrencies stocks experienced collective growth.
