- Stock Surge Is Pared After Hours on Tech Earnings
- Treasuries rose; the dollar dropped after fresh economic data
- Microsoft, Alphabet, General Motors reported earnings Tuesday
US stocks rose on Tuesday after a fresh batch of corporate earnings largely beat estimates even as investors weighed risks to economic growth from the Federal Reserve raising interest rates to combat inflation. About half the gain was retraced after 4 p.m. in New York when a handful of technology results disappointed investors.
The S&P 500 and the Nasdaq 100 rose for a third straight session. The Coca-Cola Co. and General Motors Co. closed the session in green after topping analysts’ earnings estimates. Google parent Alphabet Inc. fell postmarket after missing estimates. Microsoft Corp. which also reported earnings after markets closed, topped expectations but cited the impact the surging US dollar had on revenue growth.
Treasuries rallied, with the 10-year yield falling to around 4.08%. The dollar dropped after data on Tuesday showed that home-price growth in the US slowed as high borrowing costs sapped demand.
Roughly 28% of S&P 500 companies have reported earnings, with around 70% outperforming estimates, according to data compiled by Bloomberg.
Analysts are also expecting a jumbo hike of 75 basis points from the ECB on Thursday, even as many economists now reckon a recession has begun in the euro region. German business confidence improved in October, data showed Tuesday, though remained at depressed levels as Europe’s largest economy heads into a challenging winter.
Elsewhere in markets, the British pound gained as Rishi Sunak formally took over as UK prime minister on Tuesday, vowing to “fix” the mistakes made by his predecessor, Liz Truss.