Dow, S&P higher as Wall Street digests earnings

(AWP Alliance News) - Shares ended mostly higher in New York on Tuesday as third quarter earnings season heats up, despite continued pressure on technology shares and concerns over higher yields and energy prices.

The Dow Jones Industrial Average closed up 529.85 points, 1.0%, at 52,495.88. The S&P 500 rose 21.84 points, 0.3%, to 7,712.57. The Nasdaq Composite ended down 6.07 points at 26,424.82.

"For much of this year, the market has been willing to look through higher rates because the growth story, notably that around AI, was strong enough to justify it. Last week, we saw that relationship begin to be tested," Jake Behan, head of capital markets at Direxion, told CNBC.

"Hyperscalers report over the next few weeks, setting up the next major stress test for the AI trade," Behan continued. "Guidance around ROI, data center spending and 2027 capex will arguably be more important than the headline earnings figures."

The yield on the 10-year US Treasury was at 5.12% late Tuesday, down from 5.14% on Monday. The 30-year yield fell to 5.42% from 5.48%.

Against the dollar, the euro was at USD1.1236, up from USD1.1211. on Monday. Sterling rose to USD1.3379 from USD1.3303. Against the yen, the dollar was at JPY158.21, down from JPY158.55.

A barrel of Brent fetched USD109.02 late Tuesday, down from USD109.46 on Monday. West Texas Intermediate fell to USD101.09 from USD103.50.

Iran's Revolutionary Guards said on Tuesday that their naval mines halted three tankers attempting to travel the Strait of Hormuz via routes considered illegal by Tehran.

"Two violating oil tankers were set ablaze and halted due to the explosion of mines planted by the brave sailors of the IRGC Navy at an illegal crossing point in the southern part of the Strait of Hormuz," the Guards said in a statement on their official Sepah News website.

Gold fell to USD4,123.88 an ounce from USD4,142.11.

Brazilian President Luiz Inacio Lula da Silva's campaign team will request the disqualification of rival Flavio Bolsonaro on Tuesday over alleged election interference by tech giant Meta, a source told AFP.

The petition to be submitted to Brazil's top electoral court concerns alleged "algorithmic manipulation" by Meta aimed at harming Lula's chances of winning, the campaign source said.

The court on Monday gave Meta 24 hours to prove it was complying with an order to treat both campaigns equally, threatening a daily fine of around USD200,000 if it didn't.

Meta closed down 1.6%.

GE Aerospace shares fell 3.7% even as it reported strong third quarter results and raised 2026 guidance.

The aircraft engine manufacturer said orders rose 49% in the three months to September 30 to USD19.00 billion. Revenue increased 16% to USD14.12 billion.

Looking ahead, GE raised its full-year 2026 adjusted revenue growth forecast to 19%-20%, from its previous guidance for growth in the high teens.

General Motors shed 6.8% as guidance missed analyst expectations.

GM said third quarter revenue rose 2.9% to USD50.02 billion from USD48.59 billion a year ago. Of this, Automotive sales grew 3.3% to USD45.71 billion from USD44.26 billion, ahead of USD4.4 billion VA consensus.

Diluted earnings per share increased to USD3.70 from USD1.35, or by 32% to USD3.70 from USD2.80 on an adjusted basis.

Looking ahead, GM now expects adjusted Ebit to be USD14.5 billion to USD15.5 billion versus prior guidance of USD14.0 billion to USD16.0 billion. The midpoint of guidance is below USD15.4 billion VA consensus.

Jefferies said the results showed "life getting a bit harder" for GM with slightly negative pricing offset by slightly better cost performance.

Meanwhile, toy company Hasbro jumped 11% as it reported strong third-quarter results bolstered by its digital gaming segment.

Micron is expanding its critical minerals processing capabilities in New York through an investment in Indium Corp, the company announced on Tuesday.

Financial terms of the investment were not disclosed, but Micron said the deal is part of its commitment, announced in July, to invest up to USD3 billion to strengthen the US semiconductor supply-chain ecosystem and secure a reliable domestic supply of critical manufacturing materials.

Micron said the investment would support the expansion of Indium's refining and high-purity materials manufacturing operations in upstate New York, helping to restart domestic processing of critical minerals used in advanced semiconductor manufacturing.

Micron closed down 1.0%.

In Europe, the FTSE 100 closed down 0.3% in London. The CAC 40 lost 0.4% in Paris. The DAX 40 in Frankfurt eased 0.1%.

In China, the Shanghai Composite Index rose 0.1%. The Hang Seng dropped 1.3% in Hong Kong. The Nikkei 225 in Tokyo fell 1.3%. The S&P/ASX 200 ended down 0.3% in Sydney.

Wednesday's corporate calendar includes third-quarter results from Abbott Laboratories, AT&T, CSX, IBM, Lam Research and Phillip Morris.

The global economic diary has US EIA crude oil stocks, Japan trade balance and South African CPI.

By Aidan Lane, Alliance News reporter

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