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US stocks rose on Tuesday, helped by gains from several big names following their quarterly results. Confidence also received a boost from economic data that showed growth in the private sector amid easing inflationary pressures.
The tech-heavy Nasdaq Composite (IND COMP.) advanced 0.69% to 13,108.33 points in midday operations. All eyes are on tech titans Alphabet (GOOG) (GOOGLE) and Microsoft (MSFT), which will report its results after the closing bell.
The S&P 500 benchmark index (SP500) rose 0.57% to 4,241.18 points, while the Dow Jones (dji) added 0.58% at 33,128.46 points.
All 11 sectors were in positive territory, with the exception of Energy. Public services and communications led the winners.
Investors applauded the telecom giant's bullish forecasts Verizon (VZ), industrial conglomerates General Energy (G.E.) and 3M (HMM), and the soft drink giant Coca Cola (IS), with all its shares except Coca-Cola (IS) among the top percentage gainers in the S&P 500 (SP500). Meanwhile, aerospace major RTX (RTX) was also the one who earned the most, after approving a new share buyback worth $10 billion.
Among other earnings-related measures, oilfield services provider Halliburton (HAL) and owner of Kleenex and Huggies Kimberly Clark (KMB) fell, after both missed quarterly revenue estimates. US-listed Spotify shares (PLACE) arose after the music streaming company showed strong growth in monthly active users.
Looking at Tuesday's economic calendar, S&P Global's US PMI Composite Output Index rose to 51.0 in September, marking the strongest growth since July. On the other hand, the Richmond Federal Reserve manufacturing gauge moderate in October, with a drop in new orders.
Wall Street was over mixed the day before, fluctuating through a volatile session amid further turmoil in bond markets. At any given time, the long-term 10-year US Treasury yield (US10Y) crossed the 5% mark at its session high, surpassing that level for the first time since July 2007.
"The main talking points of note (on Monday) were the new delays in Israel's ground invasion of Gaza, market veteran Bill Ackman revealing that he publicly closed a short sale in US Treasuries. which announced in August, and PIMCO co-founder and fellow veteran Bill Gross wrote that he was buying SOFR futures because he said recent data points to a significant slowdown. So when we hit 5%, famous and not-so-famous buyers appeared come out of nowhere," said Jim Reid of Deutsche Bank.
"Looking ahead, beware of Microsoft (MSFT) and Alphabet (GOOG) (GOOGLE) earnings after the bell today, as they alone represent about 10% of the S&P 500 (SP500)," Reid added.
Long-term Treasury yields remained weak on Tuesday. The 30-year performance (US30Y) was virtually unchanged at 4.98%, as was the 10-year yield (US10Y) at 4.85%. The 2-year yield most sensitive to short-term rates (US2Y) rose 5 basis points to 5.11%.
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There were also some non-earnings-related moves on Tuesday. SEE (SEE) was one of the top S&P 500 (SP500) winning percentage after manufacturer of packaging products such as Bubble Wrap and Cryovac Announced a change of CEO and reaffirmed its guidance for 2023.
Quantum computer maker IonQ (IONQ) collapsed after departure from its co-founder and scientific director.
