Wall St set for lower open as yields rise; 3M jumps after results

Reuters

Wall St set for lower open as yields rise; 3M jumps after results

2024 10월 22, 오후 1:18 GMT

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3M gains after lifting adjusted profit forecast

GE Aerospace drops as supply constraints weigh on revenue

General Motors up after Q3 results beat estimates

Futures down: Dow 0.36%, S&P 500 0.47%, Nasdaq 0.59%

Updated at 8:30 a.m. ET/1230 GMT

By Lisa Pauline Mattackal and Purvi Agarwal

Oct 22 (Reuters) -U.S. stock indexes were on track for a lower open on Tuesday as rising Treasury yields pressured rate-sensitive shares, while investors parsed the latest set of company results to gauge the health of the corporate sector.

3M MMM.N jumped 5.6% before the bell after the industrial conglomerate raised the lower end of its full-year adjusted profit forecast.

GE Aerospace GE.N fell 5.2% despite raising its profit forecast for 2024 as persistent supply constraints impacted its revenue, highlighting the difficulty some companies may face this year in trying to impress investors.

"GE Aerospace had pretty good earnings overall and raised their full year guidance ... but even with the good earnings, not quite good enough," said JJ Kinahan, CEO, IG Group North America.

Dow E-minis 1YMcv1 were down 157 points, or 0.36%, U.S. S&P 500 E-minis EScv1 were down 27.75 points, or 0.47%, and Nasdaq 100 E-minis NQcv1 were down 121.5 points, or 0.59%.

Further pressuring equities, U.S. Treasury yields rose as investors gauged the impact of the upcoming presidential election on fiscal policy, while reassessing the effect of a robust American economy on the Federal Reserve's policy trajectory. MKTS/GLOB

The yield on the benchmark 10-year note US10YT=RR rose as high as 4.222%, continuing a steady climb since early October, after a bumper jobs report led investors to dial back expectations for monetary policy easing through the year.

Rate-sensitive megacap stocks slipped, with Tesla TSLA.O down 0.8% and Apple AAPL.O falling 1.1%.

Stocks retreated from record highs on Monday as investors took a breather following six consecutive weeks of advances for major indexes, even as gains in Nvidia helped the Nasdaq edge higher.

Kinahan said asset prices were likely resetting after a record run.

Among other earnings, General Motors GM.N gained 0.9% after the legacy carmaker's third-quarter results beat Wall Street estimates, and Lockheed Martin LMT.N dipped 1% after results.

Baker Hughes BKR.O and Texas Instruments TXN.O are scheduled to report results after the bell.

Estimated third-quarter year-over-year earnings growth for the S&P 500 is 6.5% excluding the energy sector .SPNY and 4% overall, according to LSEG data.

Futures tracking the economically sensitive small-cap Russell 2000 RTYcv1 lost 0.6%.

Remarks from Philadelphia Fed President Patrick Harker are expected later in the day.

U.S. Stocks, Bonds, and the Fed https://tmsnrt.rs/3A5Uqr2

Reporting by Lisa Mattackal and Purvi Agarwal in Bengaluru; Editing by Pooja Desai and Shounak Dasgupta

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