Nasdaq leads stock surge on day of big gains

US stocks rose in Tuesday’s trading as Wall Street digested and looked ahead to corporate earnings from some of the market’s biggest players.

The S&P 500 (^GSPC) rose 1.3% in midday trade, while the Dow Jones Industrial Average (^DJI) gained 0.8%. The tech-heavy Nasdaq Composite (^IXIC) led the uptrend, rising 2% in midday trade.

The jumps continued stock gains from Monday, as major indices rallied ahead of a series of third-quarter gains this week.

Coca-Cola (KO) released earnings before the bell on Tuesday. The Atlanta-based company raised its full-year outlook as quarterly earnings and sales beat expectations.

General Motors (GM) shares rose after the automaker beat earnings expectations but fell short of earnings. General Electric (GE) earnings fell last quarter as the company plans to cut costs at its renewable energy business.

“The pace of earnings reports has really picked up speed and this morning’s results were a little lackluster,” Paul Hickey, senior portfolio manager for Bespoke’s wealth management services, wrote in a note. “Of the nearly 40 reports so far this morning, 64% have beaten EPS forecasts and 62% beat sales estimates. Also, slightly more companies have lowered guidance than raised it.”

Microsoft (MSFT), Alphabet (GOOGL), Visa (V) and Chipotle (CMG) will announce their earnings after the bell. Other major megacap technology companies such as Meta Platforms (FB), Apple (AAPL) and Amazon (AMZN) will report later this week.

“Well, taking a big step back, let’s look at a combined market value of $7 trillion this week from companies reporting among the big tech companies this week,” Erika Klauer, portfolio manager for technology stocks at Jennison Associates, told Yahoo Finance Live on Monday ahead of big tech earnings.

According to FactSet, about a fifth of companies in the S&P 500 reported third-quarter results last Friday, and 72% of them posted earnings that beat Wall Street expectations.

Elsewhere in the company news, shares of Adidas fell after the sports brand ended its partnership with Ye, aka Kanye West, effective immediately. In a statement on Tuesday, the sportswear maker said it “does not condone anti-Semitism or any other form of hate speech” and that its recent comments were “unacceptable, hateful and dangerous”. The stock is down 66% this year.

NEW YORK, NEW YORK - OCTOBER 18: Traders work on the floor of the New York Stock Exchange during morning trading on October 18, 2022 in New York City.  The stock market opened on a rebound, with the Dow Jones gaining over 600 points, the S&P 500 up 2.20% and the Nasdaq Composite up 2.6% to add to gains that began Monday.  (Photo by Michael M. Santiago/Getty Images)

Traders work on the floor of the New York Stock Exchange during morning trading on October 18, 2022 in New York City. (Photo by Michael M. Santiago/Getty Images)

In commodity markets, Brent crude, the international oil benchmark, fell 1.55% to $83.27 a barrel on Tuesday morning. The US 10-year Treasury yield edged down to 4.1% after rising to its highest level since 2008 in recent days.

Elsewhere, 10-year UK government bond yields fell slightly after Rishi Sunak was officially named the next prime minister.

The US dollar is down 0.8% on the day but is still precariously high against the Japanese yen (JPY=X), Chinese yuan (CNH=X) and British pound (GBPUSD=X), as reported Jared Blikre’s far-reaching implications for multinational corporate earnings and global risk markets.

On the economic front, consumer confidence fell this month as high borrowing costs and inflation weighed on household budgets. The consumer confidence index fell to 102.5 from a revised 107.8 in September, according to data released Tuesday by the Conference Board. Economists polled by Bloomberg called for a drop to 105.9.

S&P CoreLogic’s Case-Shiller 20-City House Price Index, released Tuesday, showed that home price growth has slowed by the largest amount on record. The national price level increased by 13% in August compared to the same month a year ago.

Overseas, Hong Kong and mainland China stocks ended the day flat after trading back and forth between losses and gains. On Monday, US-listed Chinese stocks fell to their lowest level in almost a decade, a day after President Xi Jinping won a third term in control of the ruling Communist Party.

“The China we are looking at, led by Xi Jinping, is more focused on security. It’s more focused on restructuring the economy so the party is less vulnerable to reckless real estate sector credit expansion and runaway shadow financing,” Leland Miller, co-founder and CEO of China Beige Book, told Yahoo Finance Live on Monday.

Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv

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