The Dow Jones Industrial Average closed at 27,463.19 on Tuesday with a loss of 222.19 points or -0.80%. The S&P 500 closed at 3,390.68 for a loss of 10.29 points or -0.30%. The Nasdaq Composite closed at 11,431.35for a gain of 72.41 points or 0.64%. The VIX Volatility Index was higher at 33.35 for a gain of 0.89 points or 2.74%.
Tuesday's market movers
U.S. stocks continued to fall Tuesday after a sharp selloff Monday. Coronavirus cases continued to rise and the Senate adjourned with no stimulus deal. Technology stocks, however, saw a rebound helped by AMD's merger announcement with Xilinx (XLNX, Financial). Microsoft also beat earnings expectations as it is showing gains from pandemic sales.
On the earnings calendar:
- Microsoft (MSFT, Financial): Revenue of $37.2 billion increased 12.4% year over year and beat estimates by $1.42 billion. First-quarter GAAP earnings of $1.82 per share beat estimates by 28 cents.
- 3M (MMM, Financial): Revenue of $8.4 billion increased 5.1% year over year and beat estimates by $20 million. Third-quarter GAAP earnings of $2.43 per share beat estimates by 18 cents and non-GAAP EPS of $2.43 beat estimates by 16 cents.
- Caterpillar (CAT, Financial): Revenue of $9.9 billion decreased 22.4% year over year and beat estimates by $120 million. Third-quarter GAAP earnings of $1.22 beat estimates by 5 cents and non-GAAP earnings of $1.34 beat estimates by 17 cents.
- Advanced Micro Devices (AMD, Financial): Revenue of $2.8 billion increased 55.6% year over year and beat estimates by $240 million. Third-quarter GAAP earnings of 32 cents beat estimates by 2 cents and non-GAAP earnings of 41 cents beat estimates by 6 cents.
- Merck (MRK, Financial): Revenue of $12.55 billion increased 1.2% year over year and beat estimates by $340 million. Third-quarter GAAP earnings of $1.16 beat estimates by 14 cents and non-GAAP earnings of $1.74 beat estimates by 31 cents.
- Pfizer (PFE, Financial): Revenue of $12.13 billion decreased 4.3% year over year and missed estimates by $170 million. Third-quarter GAAP earnings of 39 cents per share missed estimates by 18 cents and non-GAAP earnings of 72 cents beat estimates by 1 cent.
In other news:
- JPMorgan launched its JPM Coin in use by a commercial client
- Durable goods orders increased 1.9% in September following an increase of 0.4%. Durable goods orders excluding transportation increased 0.8% and durable goods orders excluding defense increased 3.4%.
- The S&P/Case-Shiller Home Price Index increased 1.1% in August following an increase of 0.8%. Year over year, the S&P/Case-Shiller Home Price Index increased 5.2%.
- The FHFA House Price Index increased 1.5% in August and 8% year over year.
- The Conference Board's Consumer Confidence Index decreased to 100.9 in October from 101.3.
- The Richmond Fed Manufacturing Index increased to 29 from 21.
- The Treasury held auctions for 119-day bills at a rate of 0.100%, 42-day bills at a rate of 0.080% and two-year notes at a rate of 0.151%.
Across the board:
- Technology and biotech led gains.
- Industrials led losses.
- Xilinx (XLNX, Financial) +8.56%
- Advanced Micro Devices (AMD, Financial) -4.07%
- EXACT Sciences (EXAS) +23.04%
- Microsoft (MSFT, Financial) +1.51%
Small-cap stocks
In small caps, the Russell 2000 closed at 1,590.71 for a loss of 14.50 points or -0.90%. The S&P 600 closed at 901.87 for a loss of 12.09 points or -1.32%. The Dow Jones U.S. Small-Cap Growth Index closed at 11,217.68 for a loss of 40.79 points or -0.36%. The Dow Jones U.S. Small-Cap Value Index closed at 7,185.29 for a loss of 154.31 points or -2.10%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 1,946.68 for a loss of 27.20 points or -1.38%; the S&P 100 at 1,569.14 for a gain of 0.49 points or -0.031%; the Nasdaq 100 at 11,598.94 for a gain of 94.43 points or 0.82%; the Russell 3000 at 1,995.97 for a loss of 6.77 points or -0.34%; the Russell 1000 at 1,894.66 for a loss of 5.75 points or -0.30%; the Wilshire 5000 at 34,838.70 for a loss of 115.78 points or -0.33%; and the Dow Jones U.S. Select Dividend Index at 603.35 for a loss of 12.21 points or -1.98%.
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