Stocks were little changed on Tuesday as investors paused following a strong rally in the previous session and weighed a wave of fresh corporate earnings.
The Dow Jones Industrial Average rose 49 points, or 0.1%, while the S&P 500 also added 0.1%. The Nasdaq Composite slipped 0.1%.
A series of stronger-than-expected earnings from major companies lent some support to equities.
General Motors jumped 11% after raising its full-year guidance and topping quarterly estimates, while also lowering the expected impact from President Donald Trump’s tariffs, saying it would offset about 35% of the hit.
Coca-Cola climbed 3% and 3M rose more than 2% after both companies beat Wall Street expectations.
Among regional banks, Zions Bancorp gained 3% after reporting a rise in third-quarter profits from a year earlier, helping the sector recover some ground following last week’s selloff tied to concerns over bad loans.
Investors are bracing for a busy stretch of third-quarter earnings, with Netflix set to report later Tuesday and Tesla due Wednesday.
So far, over three-quarters of S&P 500 companies that have announced results have exceeded forecasts, according to FactSet.
The “Magnificent Seven” tech giants are projected to deliver year-over-year earnings growth of 14.9%, compared with 6.7% for the rest of the index, reflecting the ongoing strength of the artificial intelligence trade.
Broader market sentiment was also underpinned by expectations that the Federal Reserve could cut interest rates by another quarter point at its late-October meeting.
Traders will be closely watching Friday’s consumer price index report for further signals on inflation and the central bank’s next move.
Earnings beat expectations
General Motors raised its 2025 guidance on Tuesday after beating third-quarter expectations on both earnings and revenue, while lowering the anticipated impact from tariffs.
Shares swung from a 2.4% premarket decline to more than an 11% rise, putting GM on track for its best day in over five years.
Adjusted earnings per share came in at $2.80 versus $2.31 expected, revenue was $48.59 billion against $45.27 billion forecast, and adjusted EBIT reached $3.38 billion versus $2.72 billion anticipated.
Revenue was slightly below last year’s $48.76 billion.
Coca-Cola also topped expectations for its third-quarter results, though demand remained soft.
Adjusted EPS was 82 cents versus 78 cents expected, while revenue rose to $12.41 billion from an anticipated $12.39 billion.
Net income attributable to shareholders was $3.7 billion, or 86 cents per share, up from $2.85 billion, or 66 cents per share, a year earlier.
Excluding restructuring and other items, Coke earned 82 cents per share, with net sales up 5% to $12.46 billion and organic revenue rising 6%.
The post US stocks mostly flat as investors brace for earnings packed week appeared first on Invezz
