Wall Street pressured by higher yields, earnings
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Verizon down after missing Q3 revenue estimates
GE Aerospace drops as supply constraints drag on revenue
General Motors up after Q3 results beat estimates
Indexes down: Dow 0.19%, S&P 500 0.29%, Nasdaq 0.17%
Updated at 12:02 p.m. ET/1602 GMT
By Lisa Pauline Mattackal and Purvi Agarwal
Oct 22 (Reuters) - U.S. stock indexes slipped on Tuesday as rising Treasury yields impacted rate-sensitive sectors, while investors continued to evaluate earnings to assess the health of American companies.
GE Aerospace GE.N slumped 7.8% despite raising its profit forecast for 2024, as persistent supply constraints impacted its revenue. It pulled the broader Industrials index .SPLRCI 1.2% lower.
The Dow Jones Industrial Average .DJI fell 83.20 points, or 0.19%, to 42,848.40, the S&P 500 .SPX lost 16.77 points, or 0.29%, to 5,837.21 and the Nasdaq Composite .IXIC lost 30.86 points, or 0.17%, to 18,509.14.
Further pressuringequities, U.S. Treasury yields were trading at near three-month highs asinvestors repriced expectations for theFederal Reserve's policy trajectory, while also looking ahead to the fiscal impact of U.S. presidential election results.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 the central bank toease interest rates throughthe year.
Rate-sensitive megacap stocks slipped, with Apple AAPL.O falling 0.9% and Nvidia NVDA.O down 0.44%, weighing on the broader technology sector .SPLRCT, which lost 0.2%.
Microsoft MSFT.O, however, jumped 1.9%, bucking broader sector weakness.
"During the earnings season, you often get this kind of choppiness, but there's also increased uncertainty relative to the interest rate direction," said Chuck Carlson, CEO at Horizon Investment Services.
"Investors are trying to calibrate exactly what they think might be happening on the interest rate front."
Stocks continued to retreatfrom record highs, asinvestors were cautiousfollowing six consecutive weeks of advances for major indexes, waiting for more earnings to see if Wall Street's rally could be sustained.
The next few weeks are likely to be volatile for equity markets, as investors scrutinize company earnings, fresh economic data and results of the U.S. election, followed by a central bank meeting.
Traders are pricing in a 91% chance of a 25-basis-point interest-rate cut in November, according to CME's FedWatch.
Among other earnings, VerizonVZ.N lost 4.5% as the telecomgiant missed estimates for third-quarter revenue.
3M MMM.N slipped 0.5%, reversing its premarket gains, despiteraising the low end of its full-year adjusted profit forecast.
Meanwhile, GeneralMotors GM.N leapt 9.1% after the legacy carmaker's third-quarter results beat Wall Street estimates, while LockheedMartin LMT.N dipped 5.2% after results.
Rate-sensitive homebuilding stocks slipped, with the PHLX Housing index .HGX dropping 2.7%, dragged down by a 6% fall in shares of PulteGroup PHM.N despite the company beating profit and revenue estimates.
"The earnings themselves have been pretty good, it's just the companies highly sensitive to interest rates are probably going to find a bit of headwind right now as investors sort out the whole interest rate story," Carlson said.
Baker Hughes BKR.O and Texas Instruments TXN.O are scheduledto report earnings afterthe bell.
Declining issues outnumbered advancers by a 2.03-to-1 ratio on the NYSE and by a 1.61-to-1 ratio on the Nasdaq.
The S&P 500 posted eight new 52-week highs and three new lows, while the Nasdaq Composite recorded 42 new highs and 47 new lows.
U.S. Stocks, Bonds, and the Fed https://tmsnrt.rs/3A5Uqr2
Reporting by Lisa Mattackal and Purvi Agarwal in Bengaluru; Editing by Pooja Desai, Shounak Dasgupta and Maju Samuel
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Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.
