March 23, 2023

Stock market news live updates: Nasdaq gains strength, stocks rise for third straight session on key earnings day

U.S. stocks rose in trading on Tuesday as Wall Street consolidated and awaited corporate earnings from some of the market’s biggest players.

The S&P 500 (^GSPC) rose 1.6% to end the third straight day the index has gained 1%. The Dow Jones Industrial Average (^DJI) rose 1.1%. The tech-heavy Nasdaq Composite (^IXIC) added 2.3% to its session high.

Stocks continued to rally since Monday as major indexes rose ahead of third-quarter earnings this week. Summary of Tuesday’s big earnings:

  • Coca-Cola ( KO ) released earnings before the bell on Tuesday. The Atlanta-based company raised its full-year outlook as quarterly earnings and revenue exceeded expectations.

  • Shares of General Motors ( GM ) rose after the automaker beat profit expectations but fell short of revenue.

  • General Electric’s (GE) profits, on the other hand, fell in the last quarter as the company plans to cut costs in its renewable energy business.

  • Microsoft ( MSFT ) reported first-quarter earnings after hours Tuesday, beating analysts’ expectations on the top and bottom lines, even as cloud revenue weakened. Shares were down after trading.

  • Alphabet ( GOOGL ) also posted quarterly results that beat analysts’ expectations as YouTube ad revenue fell short. Shares were down after hours.

“The pace of earnings reports has really picked up, and this morning’s results have been a little weak,” Paul Hickey, chief portfolio manager of wealth management services at Bespoke, wrote in a note. “Of the nearly 40 reports so far this morning, 64% have exceeded EPS estimates and 62% have exceeded revenue estimates. Also, slightly more companies have lowered the guidelines than raised them.”

About a fifth of S&P 500 companies had reported third-quarter earnings by last Friday, and 72 percent posted results that beat Wall Street expectations, according to FactSet.

Elsewhere in corporate news, Adidas shares fell after the athletic brand ended its partnership with Ye, also known as Kanye West, “with immediate effect.” The sportswear maker said in a statement on Tuesday that it “does not tolerate anti-Semitism and any other form of hate speech” and his recent comments were “inappropriate, hateful and dangerous”. The stock has fallen 66 percent this year.

Shares of Twitter (TWTR) rose after Elon Musk promised to close the deal by the end of the week. The stock has risen by 23 percent this year.

Investors work on the floor of the New York Stock Exchange during morning trading on October 18, 2022 in New York. (Photo by Michael M. Santiago/Getty Images)

In the commodities market, Brent crude, the international oil benchmark, fell 1.55% to $83.27 a barrel on Tuesday morning. U.S. Treasury yields fell and the 10-year Treasury yield fell to 4.1 percent as data showed home price growth slowed by the most on record.

Elsewhere, the yield on UK 10-year government bonds fell as Rishi Sunak was officially named as the next prime minister.

The US dollar fell on the day but remains precariously high against the Japanese yen (JPY=X), the Chinese yuan (CNH=X) and the British pound (GBPUSD=X), Yahoo Finance’s Jared Blikre reports. far-reaching effects on MNCs’ corporate earnings and global risk markets.

On the financial front, consumer confidence weakened this month as high borrowing costs and inflation hit household budgets. The consumer confidence index fell to 102.5 from a revised 107.8 in September, according to data published by the Conference Board on Tuesday. Economists interviewed by Bloomberg called for a drop to 105.9.

Abroad, stocks in Hong Kong and mainland China ended the day unchanged after swinging between losses and gains. U.S.-listed Chinese stocks fell to their lowest in nearly a decade on Monday, a day after President Xi Jinping secured a third term in the ruling Communist Party.

– China, which we are currently looking at under the leadership of Xi Jinping, focuses more on security. It will focus more on economic restructuring so that the party has fewer vulnerabilities related to the expansion of reckless lending in the real estate sector, from controlling shadow finance,” said Leland Miller, founder and CEO of China Beige Book, on Yahoo Finance Live on Monday. .

Dani Romero is a reporter for Yahoo Finance. Follow him on Twitter @daniromerotv

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