HomeLatest NewsPositive corporate earnings drive Dow higher

Positive corporate earnings drive Dow higher

Tech Earnings Boost Dow as Microsoft and Alphabet Take the Stage

Dow Closes Higher Amid Better-Than-Expected Corporate Earnings

The Dow closed higher on Tuesday as a slew of better-than-expected corporate earnings and steady Treasury yields lifted sentiment on stocks ahead of the big tech earnings.

The Dow rose 0.6% or 204 points, the Nasdaq rose 0.9%, and the S&P 500 rose 0.7%.

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Tech Adds to Gains as Microsoft and Alphabet Set for Earnings Stage

Technology stocks continued to gain momentum as investors looked ahead to quarterly results from Microsoft and Google due after the market closes.

For Microsoft Corporation, the focus will likely be on the growth of its cloud segment Azure. RBC expects Microsoft to continue optimizing and expanding its Azure capabilities, despite modest enterprise spending.

Google is “well positioned” heading into earnings, supported by ongoing digital advertising growth in the third and fourth quarters.

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Treasury Yields Steady After Recent Selloff

Treasury yields stabilized after a selloff, which Stifel attributes to larger players adjusting their positions rather than a fundamental shift in sentiment or the economy.

On Monday, Treasury yields experienced a sharp decline after investor Bill Ackman closed his bet on lower bond prices, citing excessive risk.

The Federal Open Market Committee’s two-day meeting is set to begin on October 31, with an interest rate decision expected next month.

Bitcoin Rides ETF Optimism

Bitcoin surged over 7%, briefly surpassing $35,000 for the first time since 2022. This surge in Bitcoin also lifted other cryptocurrencies.

Coca-Cola, GE, and 3M Lift Guidance After Delivering Strong Earnings

Coca-Cola Co closed nearly 3% higher after upgrading its annual guidance following better-than-expected earnings, supported by price hikes.

General Electric Company raised its guidance on full-year performance after reporting strong earnings and revenue. The conglomerate also announced plans to spin off its renewable energy business, GE Vernova, in Q2 next year.

3M Company delivered a solid Q3 report, with its share price increasing by over 5%.

Overall, the market experienced positive momentum driven by strong corporate earnings and expectations for the upcoming tech earnings. Treasury yields stabilized after a recent selloff, and Bitcoin soared on optimism surrounding the potential approval of a spot-Bitcoin ETF. Companies like Coca-Cola, GE, and 3M also impressed investors with their robust earnings reports.

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