Tech stocks led a mixed day for markets on Tuesday as investors digested new data on job openings and absorbed a fresh wave of earnings, with Alphabet (GOOG, GOOGL) kicking off the Big Tech giants after the market close.
Shares of Alphabet moved around 4% higher in after-hours trading after the company beat third quarter earnings expectations on both the top and bottom lines while its cloud businesses continued to expand.
The Google parent is the first of five “Magnificent Seven” megacaps due to report over the next three days, with the results seen as driving the direction of stocks to kick off November.
Prior to Alphabet’s earnings, the tech-heavy Nasdaq Composite (^IXIC) closed Tuesday’s session at a record high. The index jumped about 0.8%, buoyed by Broadcom (AVGO), which gained over 4% on reports it plans to work with Microsoft-aligned OpenAI (MSFT) to develop a new artificial intelligence chip.
The benchmark S&P 500 (^GSPC) followed the Nasdaq’s lead, rising around 0.2% after initially opening the day lower. The Dow Jones Industrial Average (^DJI) was the only major index to close in the red, falling around 0.4%, or just over 150 points.
New data from the Bureau of Labor Statistics released Tuesday showed there were 7.44 million jobs open at the end of September, a decrease from the 7.86 million seen in August. August’s figure was revised lower from the 8.04 million open jobs initially reported.
Investors have been closely watching for signs of further cooling in the labor market ahead of the Federal Reserve’s next interest rate decision on Nov. 7. Updates on inflation and the jobs market later in the week will also be key in determining Fed policy.
In the meantime, earnings are at the forefront of what’s shaping up to be a crucial week for markets.
McDonald’s (MCD), PayPal (PYPL), and Pfizer (PFE) all reported results before the bell on Tuesday, while AMD (AMD), Chipotle (CMG), and Visa (V) reported alongside Alphabet after the market close.
Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards
Meanwhile, the US presidential election is injecting some uncertainty into markets in the final fierce days of campaigning. Trump Media & Technology Group stock (DJT) gained double digits following a brief trading halt earlier in the session. Shares built on Monday’s 21% gain following Donald Trump’s weekend rally in New York.
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Fewer Americans see a recession in the next 12 months
Consumer confidence shot higher in October, hitting a reading of 108.7, up from 99.2 in September. This marked the largest monthly gain in confidence since March 2021, per the Conference Board.
Economists surveyed by Bloomberg had expected consumer confidence to fall to 98.7 in October.
The large uptick in confidence came as consumers digest recent signs that the US economy remains on solid footing.
Consumers’ perceived likelihood of a US recession over the next year hit the lowest level since the Conference Board began asking the question in June 2022. In October, less than 65% of respondents said a recession in the next 12 months was “somewhat or very likely,” down from the more than 66% seen in September.
Consumers believing a recession is somewhat or very likely declined in October to its lowest level since the Conference Board began asking the question in July 2022. (The Conference Board Consumer Confidence Survey) -
Sector check: Tech gains while Utilities and Energy lag
Tech (XLK), Communication Services (XLC), and Industrials (XLI) led Tuesday’s sector action, with markets trading mixed as traders assessed new jobs data and a slew of earnings reports.
Oil prices were a standout, with WTI crude (CL=F) falling for the second straight session to trade above $67 a barrel. Brent crude (BZ=F), the international benchmark, also fell to trade just below $71 a barrel.
As a result, Energy (XLE) was one of the day’s biggest laggards, along with Utilities (XLU) and Real Estate (XLRE).
(Source: Yahoo Finance) -
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