U.S. stocks traded mixed on Tuesday as investors digested new data on job openings and absorbed a new wave of gains ahead of Alphabet’s (GOOG, GOOGL) earnings.
The Dow Jones Industrial Average (^DJI) was down about 0.2% by mid-morning trading, while the benchmark S&P 500 (^GSPC) was up about 0.1% after opening lower. The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, also recovered its losses and rose about 0.4%.
There were 7.44 million job openings at the end of September, down from 7.86 million in August, according to new data from the Bureau of Labor Statistics released Tuesday. The August figure has been revised downward from the originally announced number of 8.04 million job openings.
Investors are watching closely for signs of further cooling in the labor market ahead of the Fed’s next interest rate decision on Nov. 7. Updates on inflation and the job market later in the week will also be key in determining Fed policy.
Meanwhile, earnings are at the forefront of what is shaping up to be a big week for the market.
Alphabet’s results, released after the bell, will be closely watched as a sign of whether Big Tech’s massive AI investments are paying off. Google’s parent company is the first of five “Magnificent Seven” mega-cap stocks to be announced over the next three days, the results of which are expected to determine the direction of the stock price starting November. .
Read more: How Fed Rate Cuts Affect Bank Accounts, CDs, Loans, and Credit Cards
McDonald’s (MCD) posted higher sales in the third quarter due to higher sales in the U.S. despite concerns over the recent E. coli outbreak. The busiest week of earnings season is picking up steam, with PayPal (PYPL) and Pfizer (PFE) reporting earnings before the bell. AMD (AMD), Chipotle (CMG), and Visa (V) will be reported along with Alphabet after the market closes.
Meanwhile, the US presidential election is creating some uncertainty in the market in the last intense days of the campaign. Trump Media & Technology Group stock (DJT) rose after a brief trading halt in early trading. The stock is expected to rise following Monday’s 21% rally following Donald Trump’s weekend rally in New York.
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Bitcoin remains just below $72,000 per token
Bitcoin price (BTC-USD) rose about 5% on Tuesday, surpassing a key technical level and remaining just below $72,000 per token, its highest since early June.
The move comes as the U.S. Spot Bitcoin ETF recorded $472.6 million in inflows on Monday, extending gains seen last week.
Cryptocurrency stocks also rose in tandem, with Mara Holdings (MARA), MicroStrategy (MSTR), and Riot Blockchain (RIOT) rising about 2%, 1%, and 4%, respectively.
McDonald’s E. coli outbreak has no significant impact, company says
McDonald’s posted better-than-expected profits in the third quarter, but Wall Street is still very focused on the recent E. coli outbreak. Shares were up more than 1% in early trading.
Yahoo Finance’s Brooke DiPalma adds:
The third quarter ended on September 30, so the impact of the outbreak will be felt in the fourth quarter’s results. Executives expressed the view that there would be no material impact on business.
So far, the E. coli outbreak has infected 75 people and killed one person in 13 states. McDonald’s will begin distributing fresh beef patties to all restaurants starting this week after the Colorado Department of Agriculture said on Sunday that Quarter Pounder patties were the source of E. coli contamination and that onions were a potential culprit. announced that it would reopen.
Burger King (QSR) has preemptively removed onions from 5% of its restaurants, despite no reports of illness. Hmm! The brand (YUM) has also removed raw onions from some Taco Bell, Pizza Hut and KFC restaurants “out of an abundance of caution,” a spokesperson told Yahoo Finance.
McDonald’s CEO Chris Kempczinski said he believes the “swift and decisive actions” taken by McDonald’s should help strengthen consumer confidence.
However, according to a pre-earnings note from TD Cowen analyst Andrew Charles, investor sentiment was mixed, with bears focusing on “uncertainty” surrounding “food safety impacts.” is. Meanwhile, bulls are encouraged by the McRib relaunch in December, a new national value platform in January, and chicken strips and wraps coming in May or June 2025.
Number of job openings in September decreased more than expected
The number of job openings in September fell more than expected. The statistics come as investors closely monitor the labor market for signs of further cooling ahead of the Federal Reserve’s next interest rate decision on Nov. 7.
There were 7.44 million job openings at the end of September, down from 7.86 million in August, according to new data from the Bureau of Labor Statistics released Tuesday.
The August figure has been revised downward from the originally announced number of 8.04 million job openings. Economists surveyed by Bloomberg had predicted that the report would result in 8 million new store openings in September.
Tuesday’s data also showed that the turnover rate, a sign of worker confidence, fell to 1.9% in September, down from a revised 2% in August. Meanwhile, according to the Job Openings and Labor Turnover Survey (JOLTS), the number of employed people in the same month was 5.55 million, up from 5.43 million in August. The employment rate in September was 3.5%, up slightly from 3.4% in August.
Ford shares fall 7% after disappointing profit forecasts
Ford Motor Co. (F) shares fell more than 9% early Tuesday after the automaker cut its full-year profit forecast a day earlier, citing high warranty costs and supplier disruptions.
Ford has revised down its full-year profit forecast and now expects adjusted EBIT in 2024 to be “approximately $10 billion,” the lower end of its previous forecast of $10 billion to $12 billion.
The company said “supplier disruption” affected sales of the Ford Pro and Ford Blue, due in part to hurricanes in the southeastern United States.
Additionally, Ford CEO Jim Farley said on a conference call with analysts that “costs, especially warranties, have been constraining our earnings power, but by bending that curve, we have a financial “There is a large upside in terms of the market,” he added.
Ford shares are still up more than 3% from last year, when a strike by the United Auto Workers union cost the company an estimated $1.3 billion.
Meanwhile, shares of rival General Motors (GM) have risen nearly 8% since last week after the company raised its profit forecast for the third time this year in its third-quarter earnings report.
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DJT stock temporarily halts, expands its rise
Trump Media & Technology Group stock (DJT) was suspended in early trading Tuesday after the stock extended its first gain in five weeks, rising about 10% shortly after the opening bell. The stock’s move comes as investors bet on Donald Trump’s chances of winning the November presidential election.
The stock closed more than 21% higher on Monday following the former president’s and Republican candidate’s highly criticized rally held at Manhattan’s Madison Square Garden (MSG) over the weekend. At current levels, the stock is trading at its highest since May, and the stock is up about 270% from its September lows.
Trump maintains a roughly 60% interest in DJT. At more than the current price of $52 per share, Trump Media would have a market capitalization of about $10.3 billion, and the former president’s stock holdings would be worth about $6.2 billion.
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Stock prices start falling
U.S. stocks opened lower on Tuesday as investors digested new gains and awaited Alphabet’s (GOOG, GOOGL) results to be released after the bell.
The Dow Jones Industrial Average (^DJI) fell about 0.3%, surging as all indexes ended higher. The benchmark S&P 500 Index (^GSPC) and the tech-heavy Nasdaq Composite Index (^IXIC) each fell about 0.3% at the market open.
House prices recorded their lowest annual rate of increase since 2023.
U.S. home prices hit a record high again in August, but the pace of price growth is slowing.
For the year, the S&P Case-Shiller National Home Price Index rose 4.2%, slowing from July’s 4.8% rise.
“Home price growth is starting to show signs of strain and is at its lowest since 2023, when mortgage rates peaked,” Brian D. Luke, S&P’s head of commodities, physical and digital assets, said in a press release. “We are recording an annual increase rate.”
Prices in August rose by 0.3% from the previous month on a seasonally adjusted basis. This was the 15th consecutive month of increase and the index’s all-time high.
The index, which tracks home prices in 20 metropolitan areas, rose 0.4% in August from July, beating the Bloomberg consensus estimate for a 0.2% month-on-month increase. Meanwhile, the 20-city index increased by 5.2% compared to August last year.
“As students return to school, home buyers appear to be less motivated to push the index higher than they were in the summer. Over the past six months, prices have continued to decelerate, with increases below the long-term average of 4.8%. “There are,” Luke added.
Financial summary: McDonald’s, BP, and PayPal stocks fall, while Pfizer and HSBC rise in 3rd quarter results
On Tuesday morning, another company announced its earnings results. Here’s a quick overview:
Here’s a look at how companies performed this morning compared to Wall Street’s expectations using Bloomberg’s consensus estimates.
Novartis: Adjusted underlying earnings per share of $2.06 (vs. $1.94 expected), revenue of $12.82 billion (vs. $12.68 billion expected)
McDonald’s: Adjusted diluted earnings per share of $3.23 vs. $3.20 expected, revenue of $6.87 billion vs. $6.81 billion expected.
HSBC: Adjusted diluted earnings per share of $0.34 vs. $0.30 expected; net revenue of $17.21 billion vs. $16.14 billion expected.
Pfizer: Diluted earnings per share of $1.06 vs. $0.64 expected; revenue of $17.7 billion vs. $15.08 billion expected.
BP: Adjusted diluted earnings per share of $0.14 vs. $0.13 expected; revenue of $47.25 billion vs. $46.16 billion expected.
PayPal: Adjusted diluted earnings per share of $1.20 vs. $1.07 expected, revenue of $7.85 billion vs. $7.89 billion expected.
Google (GOOG) parent Alphabet, AI chip maker Advanced Micro Devices (AMD), Visa (V) and Chipotle (CMG) are among the list of companies scheduled to report earnings after the bell.
good morning. Here’s what happened today:
Economic Data: S&P CoreLogic 20 City YoY NSA (August). Conference Board Consumer Confidence (October); JOLTS Job Information (September); Dallas Fed Service Activities (October)
Revenue: Alphabet (GOOGL, GOOG), AMD (AMD), BP Oil (BP), Chipotle (CMG), Crocs (CROX), McDonald’s (MCD), JetBlue (JBLU), PayPal (PYPL), Pfizer (PFE) , Reddit (RDDT), Royal Caribbean Group (RCL), Snap (SNAP), SOFI (SOFI), Visa (V), DR Horton (DHI)
Here are some of the biggest stories you may have missed overnight and early this morning.
McDonald’s’ sales in the US are strong and exceed sales
CEOs say this is the worst thing that could happen to their company’s bottom line.
Weather-hit jobs report shows economic indicators are true
Pfizer raises profit forecast after beating third-quarter forecasts
Apple exports $6 billion worth of iPhones from India in major shift to China
Boeing raises $21 billion in capital increase to increase cash pile
President Trump called Biden’s tipping behavior “very egregious.” Mr. Harris has achieved outstanding results.
