On Tuesday, the Nasdaq composite reached a record high due to rallying technology stocks, but trading was mixed with homebuilders and Ford Motor sinking following their latest profit reports. The S&P 500 rose 0.2% to near its all-time high, supported by gains in Big Tech stocks. The Dow Jones Industrial Average, however, fell 0.4%. Alphabet, parent company of Google, rose 1.8% ahead of its profit report after trading closed. Market heavyweights like Microsoft and Meta Platforms also contributed to the S&P 500’s upward movement.
Despite Ford Motor reporting better-than-expected results for the third quarter, the stock dropped 8.4% due to concerns about high warranty expenses affecting full-year profitability. JetBlue Airways lost 17.1% despite exceeding analyst expectations for the quarter, citing lower revenue projections for the final quarter of 2024. Homebuilder D.R. Horton tumbled 7.2% after reporting weaker profit and revenue, attributing the decline to potential home buyers waiting for more affordable mortgage rates. Overall, the S&P 500 rose to 5,832.92, while the Dow fell to 42,233.05 and the Nasdaq composite rose to 18,712.75.
Mortgage rates have been on the rise due to the increase in the 10-year Treasury yield, fueled by stronger than expected reports on the U.S. economy. Despite consumer confidence rising and steady job numbers, traders have adjusted expectations for Federal Reserve interest rate cuts. Investors are also optimistic about former President Donald Trump’s re-election prospects, which could impact inflation and interest rates in the long term. Trump Media & Technology Group stock rose 8.8% on Tuesday, reflecting the company’s ties to Trump’s re-election odds. Treasury yields eased slightly after reaching a high of 4.28% but remained above the levels from the previous month.
In global stock markets, European indexes dipped while most of Asia experienced gains, excluding a 1.1% drop in Shanghai stocks. Crude oil prices slipped after a significant drop the previous day, with Brent crude falling by 0.4%. Overall, the market outlook remains uncertain as traders navigate through various economic indicators, election uncertainties, and corporate earnings reports. Investors will continue to monitor Federal Reserve actions, inflation prospects, and political developments to gauge the future direction of the financial markets.
