Stocks rallied hard Tuesday as investors took in the latest round of corporate earnings. The buying power faded early afternoon but picked up again into the close as market participants looked ahead to quarterly results from several Big Tech firms.
When the closing bell rang, the Nasdaq Composite was up 0.9% at 13,139, the S&P 500 had gained 0.7% to 4,247, and the Dow Jones Industrial Average was 0.6% higher at 33,141.
Coca-Cola, Verizon pop after earnings
It's a busy week on the earnings front, with roughly 30% of S&P 500 companies reporting. Today's headlines centered around results from several blue chip stocks. Coca-Cola (KO), for one, jumped 2.9% after the beverage company reported higher-than-expected third-quarter earnings of 74 cents per share on revenue of $11.9 billion. The company also raised its full-year guidance.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"KO's streak of earnings beats remained intact, as the last time the company posted a quarterly earnings miss was in 2017," says CFRA Research analyst Garrett Nelson who upgraded the Dow stock to Strong Buy from Buy. The company's revenue growth showed little signs of stopping in Q3, thanks in part to strong demand in Latin America, Nelson adds.
Verizon Communications (VZ) was another stock popping post-earnings, with shares jumping 9.3% after the telecommunications firm reported a third-quarter earnings beat. Revenue of $33.3 billion matched estimates, while the company also raised its full-year free cash flow forecast by $1 billion to more than $18 billion.
Next up on the earnings calendar are Alphabet (GOOGL, +1.7%) and Microsoft (MSFT, +0.4%) – both of which reported higher-than-expected earnings after tonight's close. Facebook parent Meta Platforms (META, -0.5%) reports tomorrow night, while results from e-commerce giant Amazon.com (AMZN, +1.6%) are due after Thursday's close.
Bitcoin price pops on ETF chatter
Bitcoin was a big mover too. The cryptocurrency ran up near $35,000 overnight, a level it hasn't seen since May 2022, on news asset management giant BlackRock listed its iShares Bitcoin Trust with the ticker IBTC on the Depository Trust & Clearing Corporation (DTCC). This sparked excitement that the Securities and Exchange Commission (SEC) is on the cusp of approving the first spot Bitcoin exchange-traded fund (ETF).
"Bitcoin has stormed higher again on Tuesday continuing its blockbuster start to the week on the back of more ETF chat," says Craig Erlam, senior market analyst at OANDA. "There's clearly a lot of excitement about the prospect of a Bitcoin spot ETF, as is evident by such a surge on speculation of something that was already expected to eventually get over the line."
However, subsequent reports indicated that the listing for the iShares Bitcoin Trust had been removed from the DTCC website. This brought Bitcoin slightly off its earlier highs, with the digital asset last seen up 7.8% at $33,804. (Bitcoin markets don't close; price taken at 4 pm Eastern.) Still, the price of Bitcoin is up 25% since the start of the month.
Flash PMI data comes in strong
On the economic front, data from S&P Global showed its flash manufacturing purchasing managers index (PMI) and flash services PMI were both higher in October vs September, with the latter surpassing the 50 level that marks expansion for the first time since April.
"Hopes of a soft landing for the U.S. economy will be encouraged by the improved situation seen in October," said Chris Williamson, chief business economist at S&P Global Market Intelligence, in the report. Still, Williamson warns that ongoing geopolitical tensions in the Middle East "post downside risks to growth and upside risks to inflation, adding fresh uncertainty to the outlook."
Related content
-
E-ZPass Scam Texts are Still Going Around. Here's What to Look Out ForScammers have been sending fake texts about E-ZPass for over a year. Know what to look out for and what to do.
-
A Savings Tool to Empower People With DisabilitiesAn ABLE account can improve quality of life for individuals with a disability — it permits tax-free saving for ongoing expenses without jeopardizing benefits.
-
Stock Market Today: Stocks Swing Higher After Early SlumpNegative earnings reactions for Nike, FedEx and Micron kept pressure on the main indexes, though.
-
Stock Market Today: Stocks Struggle After Big Fed GainsAn unexpected rise in existing home sales couldn't save stocks on Thursday.
-
Stock Market Today: Stocks Enjoy a Fed Day Relief RallyThe question now is whether Jerome Powell and other policymakers can get the balance right given all the new noise.
-
Stock Market Today: Stocks Skid Into Another Risk-Off TurnThe promise of the AI revolution can't overcome flickering hopes for a "Fed put."
-
Stock Market Today: Dow Adds 353 Points Despite Soft Retail SalesInvestors and traders shake off another set of shaky economic numbers and send 10 of 11 sectors higher on Monday.
-
CoreWeave IPO: Should You Buy CRWV Stock?The CoreWeave IPO will mark the biggest public offering of the year, with the AI cloud company expected to start trading on the Nasdaq in late March.
-
Stock Market Today: Dow Jumps 674 Points in Friday's Relief RallyThe gains weren't limited to stocks, though, with gold futures closing above the $3,000 per ounce mark for the first time.
-
Stock Market Today: Stocks Drop on Trump's EU Tariff ThreatsThe White House said alcohol imports from the European Union could soon face tariffs of 200%.
