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Wall Street closed higher on Tuesday, driven by strong earnings numbers from the tech sector and flash economic data released by S&P Global. Energy prices continued to decline amid demand concerns. All three major stock indexes ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.6% or 204.97 points to close at 33,141.38. Twenty-one components of the 30-stock index ended in positive territory, while nine ended in negative.
The tech-heavy Nasdaq Composite added 121.55 points or 0.9% to close at 13,139.88.
The S&P 500 gained 30.64 points, or 0.7%, to close at 4,247.68. Ten out of the 11 broad sectors of the benchmark index closed in the green. The Utilities Select Sector SPDR (XLU), the Real Estate Select Sector SPDR (XLRE) and the Materials Select Sector SPDR (XLB) advanced 2.6%, 1.3% and 1.2%, respectively, while the Energy Select Sector SPDR (XLE) declined 1.4%.
The fear-gauge CBOE Volatility Index (VIX) decreased 6.9% to 18.97.
Strong Earnings Numbers Help Drive Markets
Various mega-cap growth companies posted strong earnings numbers throughout the day and updated their guidance, keeping investor mood upbeat. Verizon Communications Inc. (VZ - Free Report) reported mixed third-quarter 2023 results, with the bottom line beating the Zacks Consensus Estimate but the top line missing the same. The company came out with quarterly earnings of $1.22 per share, beating the Zacks Consensus Estimate of $1.17. It posted revenues of $33.34 billion, missing the Zacks Consensus Estimate by 0.16%. This compares to year-ago revenues of $34.24 billion. However, the Wireless giant’s stock gained 9.3% after the reportage, driving the communication services industry.
The Coca-Cola Company’s (KO - Free Report) third-quarter 2023 top and bottom lines surpassed the Zacks Consensus Estimate. Earnings of 74 cents per share grew 7% from the year-ago period and beat the Zacks Consensus Estimate of 69 cents. Revenues of $11.9 billion surpassed the Zacks Consensus Estimate of $11.5 billion and improved 8% year over year.
What also helped was that, per S&P Global, the manufacturing sector in the United States pulled out of a five-month contraction, and services activity accelerated modestly. Per a release, the “flash” U.S. Composite Purchasing Managers Index tracking both the manufacturing and service sectors rose to 51 in October, remaining above the level of 50 that separates expansion and contraction. The September number was revised to 50.2. This is the highest level since July. Utility stocks gained the most.
Oil prices slid on Tuesday for the third straight session after a flurry of slow economic data from the eurozone and Britain raised questions about the oil demand. Energy became the only broad sector to become a drag on the market in the session.
Brent crude fell $1.76, or 2%, to settle at $88.07/barrel, while WTI crude fell $1.75, or 2.1%, to close at $83.74/barrel.
No economic data was released on Tuesday.
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Stock Market News for Oct 25, 2023
Wall Street closed higher on Tuesday, driven by strong earnings numbers from the tech sector and flash economic data released by S&P Global. Energy prices continued to decline amid demand concerns. All three major stock indexes ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.6% or 204.97 points to close at 33,141.38. Twenty-one components of the 30-stock index ended in positive territory, while nine ended in negative.
The tech-heavy Nasdaq Composite added 121.55 points or 0.9% to close at 13,139.88.
The S&P 500 gained 30.64 points, or 0.7%, to close at 4,247.68. Ten out of the 11 broad sectors of the benchmark index closed in the green. The Utilities Select Sector SPDR (XLU), the Real Estate Select Sector SPDR (XLRE) and the Materials Select Sector SPDR (XLB) advanced 2.6%, 1.3% and 1.2%, respectively, while the Energy Select Sector SPDR (XLE) declined 1.4%.
The fear-gauge CBOE Volatility Index (VIX) decreased 6.9% to 18.97.
Strong Earnings Numbers Help Drive Markets
Various mega-cap growth companies posted strong earnings numbers throughout the day and updated their guidance, keeping investor mood upbeat. Verizon Communications Inc. (VZ - Free Report) reported mixed third-quarter 2023 results, with the bottom line beating the Zacks Consensus Estimate but the top line missing the same. The company came out with quarterly earnings of $1.22 per share, beating the Zacks Consensus Estimate of $1.17. It posted revenues of $33.34 billion, missing the Zacks Consensus Estimate by 0.16%. This compares to year-ago revenues of $34.24 billion. However, the Wireless giant’s stock gained 9.3% after the reportage, driving the communication services industry.
The Coca-Cola Company’s (KO - Free Report) third-quarter 2023 top and bottom lines surpassed the Zacks Consensus Estimate. Earnings of 74 cents per share grew 7% from the year-ago period and beat the Zacks Consensus Estimate of 69 cents. Revenues of $11.9 billion surpassed the Zacks Consensus Estimate of $11.5 billion and improved 8% year over year.
What also helped was that, per S&P Global, the manufacturing sector in the United States pulled out of a five-month contraction, and services activity accelerated modestly. Per a release, the “flash” U.S. Composite Purchasing Managers Index tracking both the manufacturing and service sectors rose to 51 in October, remaining above the level of 50 that separates expansion and contraction. The September number was revised to 50.2. This is the highest level since July. Utility stocks gained the most.
Consequently, shares of American Electric Power Company, Inc. (AEP - Free Report) and Brookfield Renewable Partners L.P. (BEP - Free Report) rose 1.9% and 2.6%, respectively. Brookfield carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Oil Prices Continue to be a Drag on the Market
Oil prices slid on Tuesday for the third straight session after a flurry of slow economic data from the eurozone and Britain raised questions about the oil demand. Energy became the only broad sector to become a drag on the market in the session.
Brent crude fell $1.76, or 2%, to settle at $88.07/barrel, while WTI crude fell $1.75, or 2.1%, to close at $83.74/barrel.
No economic data was released on Tuesday.