Wall Street closed mixed on Tuesday, driven by industrial and discretionary stocks. Investor mood was slightly upbeat on strong corporate earnings, and President Trump expressed hope about a fair deal being struck with China. One of the three benchmark indexes finished in the green, one in red, while one remained virtually unchanged.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) climbed 0.5%, or 218.16 points, to close at 46,924.74. Eighteen components of the 30-stock index ended in positive territory, while 12 ended in negative.
The tech-heavy Nasdaq Composite lost 36.88 points, or 0.2%, to close at 22,953.67.
The S&P 500 gained 0.22 points, remaining virtually flat at 6,735.35. Five of the 11 broad sectors of the benchmark index closed in the green. The Consumer Discretionary Select Sector SPDR (XLY), the Industrials Select Sector SPDR (XLI) and the Communication Services Select Sector SPDR (XLC) advanced 1.2%, 0.9% and 0.4%, respectively, while the Utilities Select Sector SPDR (XLU) fell 0.1%.
The fear gauge CBOE Volatility Index (VIX) decreased 2% to 17.87. A total of 19.7 billion shares were traded on Tuesday, lower than the last 20-session average of 20.3 billion. Advancers outnumbered decliners by a 1.27-to-1 ratio on the NYSE, while on the Nasdaq, decliners edged past advancers by a 1.11-to-1 ratio.
Wall Street Mixed as Solid Industrial Earnings Lift Dow, Tech Stocks Lag
On Tuesday, investors weighed a strong batch of corporate earnings against concerns about the sustainability of the recent rally. The Dow Jones Industrial Average advanced modestly, supported by upbeat results from several industrial and capital goods companies, while the S&P 500 closed almost unchanged and the Nasdaq Composite slipped, dragged by weakness in a few large-cap tech names.
The day’s gains were fueled primarily by solid third-quarter earnings reports, which continued to signal resilience in the broader U.S. economy despite slowing growth in certain sectors. Companies in manufacturing, construction equipment and transportation reported robust demand and better-than-expected profits, reflecting sustained business spending and infrastructure activity. Companies like General Motors Company GM, Lockheed Martin Corporation LMT and 3M Company MMM beat earnings estimates and raised their forecasts for the year. These upbeat results bolstered cyclical stocks and helped the Dow outperform.
Meanwhile, investors remained cautious about the tech sector, where some high-valuation stocks faced mild profit-taking after recent strong advances. Market participants also looked ahead to key reports from major tech firms later in the week, which are expected to offer further insight into consumer and enterprise spending trends. Bond yields edged higher, with the 10-year Treasury yield hovering near 4.3%, as traders reassessed the Fed’s rate outlook. Tuesday’s session highlighted the rotation from defensive to cyclical sectors, with industrials, materials and select consumer discretionary names attracting buying interest.
Consequently, shares of Amazon.com, Inc. AMZN and Howmet Aerospace Inc. HWM jumped 2.6% and 2.4%, respectively. While AMZN currently carries a Zacks Rank #2 (Buy), HWM has a #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Trump’s Softened Tone on China Lifts Market Sentiment
President Donald Trump struck a conciliatory tone toward China on Tuesday, saying he expected to reach a “fair and fantastic trade deal” with President Xi Jinping if discussions progressed after their next meeting. He also downplayed fears of a Taiwan conflict, suggesting that China “doesn’t want to do that,” signaling a softer stance after weeks of hawkish rhetoric. His comments were widely interpreted as an attempt to calm trade tensions and reassure global investors about U.S.-China relations. Markets responded positively to Trump’s remarks. Wall Street indexes edged higher, with cyclical and industrial stocks gaining as traders viewed his comments as a sign of easing geopolitical friction.
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Lockheed Martin Corporation (LMT): Free Stock Analysis Report Amazon.com, Inc. (AMZN): Free Stock Analysis Report 3M Company (MMM): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Howmet Aerospace Inc. (HWM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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