Wall Street mixed ahead of Alphabet earnings

Reuters

Wall Street mixed ahead of Alphabet earnings

2024 10월 29, 오후 6:40 GMT

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Alphabet rises ahead of earnings after the bell

Ford falls after results

D.R. Horton losses weigh on homebuilders

Indexes: Dow down 0.18%, S&P 500 up 0.23%, Nasdaq up 0.72%

Updates to mid-afternoon

By Abigail Summerville

Oct 29 (Reuters) -Wall Street's main indexes struggled for direction onTuesday as investors digested ahost of corporate earnings andawaited Google-parent Alphabet's GOOGL.O results laterin the day.

Alphabet, one of the so-called"Magnificent Seven" megacap technology stocks,gained 1.8%ahead of its results due after the market close.

This week marks the busiest period for S&P 500 earnings, with eyes on five of the "Magnificent Seven" companiesthat are reporting quarterly results.

The group's results will be crucial to determining whether Wall Street can sustain the optimism around technology and artificial intelligence that has lifted indexes to record highs this year.

"I think one of the things the market is digesting is the idea of some degree of convergence in earnings growth between the high fliers - the Magnificent Seven that are obviously very high in terms of market weighting - versus the rest of the market," said Bill Merz, head of Capital Markets Research for U.S. Bank's asset management group.

Other megacaps were mixed, with Nvidia NVDA.O up 0.6%,while Apple rose 0.2% andTesla TSLA.O lost 1.4%.

Investors sifted through a deluge of corporate earnings. Vans parent VF Corp VFC.N jumped 22.2%after the apparelcompany reported its first profit in two quarters.

D.R. Horton DHI.N dropped 8.5% on Tuesday after the homebuilder forecast 2025 revenue below estimates. Other homebuilders lost ground, with the PHLX Housing index .HGX dropping over 3% and on track for its worst day since April.

Ford F.N slumped more than 8% a day after the automaker said it expected to hit the lower end of its annual profit forecast. Restaurant chain Chipotle Mexican Grill CMG.N slipped ahead of its earnings later on Tuesday.

Meanwhile, the Labor Department's JOLTS survey showed job openings were at 7.44 million in September, compared with estimates of 8 million, a Reuters poll of economists showed.

A separate report showed consumer confidence at 108.7 in October, abovethe estimated 99.5.

The Dow Jones Industrial Average .DJI fell 77.30 points, or 0.18%, to 42,310.27. The S&P 500 .SPX gained 13.60 points, or 0.23%, at 5,837.12 and the Nasdaq Composite .IXIC rose 133.90 points, or 0.72%, to 18,701.09.

Among sectors, communication services .SPLRCL, which includesAlphabet and Meta, was the top gainer, while utilities .SPLRCU slumped 1.8%.

Gains were limited asthe benchmark U.S. 10-year Treasury yield US10YT=RR touched4.3% for the first time since early July.

"As bond yields go up and bond prices go down, other assets that historically have bond-like characteristics like utilities could be under slightly more pressure," Merz said.

Investors are anticipating a volatile few weeks with upcoming corporate earnings, Middle East tensions, and the Nov. 5 U.S. elections followed by the Federal Reserve's policy-setting meeting.

Declining issues outnumbered advancers by a 2.25-to-1 ratio on the NYSE and a 1.37-to-1 ratio on the Nasdaq.

The S&P 500 posted 17 new 52-week highs and no new lows while the Nasdaq Composite recorded 75 new highs and 57 new lows.

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Reporting by Abigail Summerville in New York; Editing by Richard Chang

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