US Markets
Tuesday, October 24th, 2023 1:51 pm EDT
Key Points
- Stock Market Performance: Stock markets saw gains on Tuesday, with the Dow Jones Industrial Average rising 0.8%, the S&P 500 increasing by 0.7%, and the Nasdaq Composite also climbing.
- Earnings Reports: Coca-Cola and Spotify reported positive earnings and revenue results that exceeded expectations, leading to significant stock price increases. General Motors, on the other hand, saw a decline in its shares due to challenges related to rising costs resulting from union strikes.
- High Valuations and Concerns: Despite positive earnings reports from tech companies, concerns persist about the high valuations of these firms. Experts, like David Bahnsen, believe that these valuations are excessive and unsustainable. Investors are also closely monitoring U.S. 10-year Treasury yields, which have raised concerns about the broader economy and have been impacting the stock market.
On Tuesday, stock markets experienced a rise as investors paid close attention to a new wave of earnings reports and monitored movements in Treasury yields. The Dow Jones Industrial Average gained 274 points, or 0.8%, while the S&P 500 and the Nasdaq Composite both climbed 0.7%.
Coca-Cola reported earnings and revenue that exceeded expectations, leading to a more than 3% increase in its stock value. Spotify also performed well, with its shares surging by 9% after the audio streaming company released third-quarter results that beat expectations. However, General Motors saw its shares fall by over 1% as the company withdrew its full-year outlook due to increased costs resulting from United Auto Workers union strikes.
Upcoming earnings reports from Alphabet and Microsoft, along with others such as Amazon and Meta, are highly anticipated. This week, around 150 S&P 500 companies are scheduled to report, and so far, this earnings season has been better than expected. Approximately 23% of S&P 500 companies that have reported earnings have exceeded analysts’ expectations, according to FactSet.
Despite the positive earnings reports from tech companies, some experts, like Bahnsen Group’s Chief Investment Officer David Bahnsen, believe that the valuations of these tech firms are still too high. Bahnsen argued that even if tech companies beat expectations this week, their valuations are excessive and unsustainable.
Investor attention has also been on the U.S. 10-year Treasury yield, which recently rose above 5% before retracting below that level. These fluctuations in yields have raised concerns about the broader economy and have been a source of pressure on the stock market in recent weeks. As of Tuesday, the benchmark rate stood at around 4.848%.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/10/23/stock-market-today-live-updates.html
