Stocks closed mostly flat on Tuesday, with the Dow Jones Industrial Average gaining about 13 points (0.04%) to close at 33,997. The S&P 500 was down 0.01%, while the Nasdaq Composite fell 0.25%.
Stronger-than-expected September retail sales data caused bond yields to surge, with the 10-year U.S. Treasury note reaching its highest level since October 6 at 4.847%. 2-year Treasury notes hit a 17 year high of 5.20%
The U.S. announced plans to tighten restrictions on AI chip exports to China, leading to declines in chip stocks like Nvidia and Advanced Micro Devices (AMD).
Several individual companies faced after-hours trading declines, with United Airlines dropping nearly 5% after issuing guidance for adjusted earnings per share (EPS) in the range of $1.50 to $1.80, below the expected $2.06. For the third-quarter the airlines adjusted earnings per share was $3.65 vs $3.35 expected and total revenue of $14.48 billion vs. an expected $14.44 billion.
Interactive Brokers Group's stock price declined by more than 4% in after-hours trading despite Q3 adjusted EPS of $1.55, surpassing the $1.51 average analyst estimate and Adjusted net revenue of $1.14B, vs. $1.11B expected
J.B. Hunt Transport Services saw a 3.6% decrease in its shares after reporting third-quarter results that fell short of Wall Street's expectations. EPS was reported at $1.80, missing analyst estimates of $1.85. Revenue for the quarter came in at $3.16B versus the consensus estimate of $3.18B.
Omnicom Group Inc. (OMC) on Tuesday reported third-quarter profit of $371.9 million and earnings per share of $1.86, beating Wall Street expectations of $1.85 per share. Revenue was $3.58 billion vs $3.57 billion expected. Despite the earnings beat the stock traded down after hours 1.36%
Earnings Season:
During this earnings season, 83% of companies have exceeded earnings expectations, with about 70% surpassing sales estimates, according to FactSet data
Upcoming earnings reports from companies like Morgan Stanley, Procter & Gamble, Travelers, Netflix, and Tesla are highly anticipated.
Economic Data
On the economic front, Wall Street awaits housing starts and building permits data for September.