The US equity benchmarks were largely flat on Tuesday as traders wait for earnings results from big corporate companies later this week.
Alphabet, Snap, Reddit and Advanced Micro Devices are expected to post their earnings for the third quarter after the stock market closes on Tuesday.
Tech juggernauts, Microsoft and Meta Platforms are scheduled to release their results on Wednesday, while Apple on Thursday.
CFRA Research chief investment strategist Sam Stovall told CNBC:
It’s currently an expensive market, and so I think that investors need for earnings growth to accelerate in order to justify these higher PE ratios.
At the time of writing, the Dow Jones Industrial Average was just 14 points higher, while the S&P 500 index was up 6 points.
The Nasdaq Composite was higher by 0.3%.
Traders will also keep an eye on the US Treasury yields, which rose to their highest point since July.
Trump Media continues surge
Shares of Trump Technology and Media (DJT) jumped 14% on Tuesday, following a high-profile rally by Republican presidential nominee Donald Trump in New York City.
Analysts quoted by Reuters said that DJT’s share price movement reflects the optimism among investors about Trump’s political prospects.
The stock had surged more than 20% on Monday, and was trading at levels not seen since May this year.
Campaign activities have boosted confidence among pro-Trump retail investors, who view the stock as both a financial bet and show of political support, according to Reuters.
Ford shares slump
Shares of Ford Motor fell more than 7% on Tuesday after the automaker tempered its full-year profit forecast.
The company tempered its profit forecast due to supplier disruptions and warranty costs amid a global price war fueled by overcapacity.
Ford expects its 2024 adjusted earnings before interest and taxes of about $10 billion, down from its previous projection of $10-$12 billion.
Additionally, VF Corp’s shares soared nearly 20% after the company posted better-than-expected results.
For the fiscal second quarter, the company reported adjusted earnings of 60 cents per share on $2.76 billion in revenue.
Analysts surveyed by LSEG had expected earnings of 37 cents per share and $2.71 billion in revenue.
The company also declared a quarterly dividend of 9 cents per share.
McDonald’s earnings beat expectations
The fast food chain reported third quarter earnings and revenue, which beat analysts’ expectations.
The company also reversed the same-store sales decline from the previous quarter.
The fast food chain earned an adjusted $3.23 per share on revenue of $6.87 billion. Analysts polled by LSEG anticipated a profit of $3.20 per share on revenue of $6.82 billion.
Shares of McDonald’s were, however, flat during Tuesday’s trading session.
Gold prices hit fresh record highs
Gold prices continued to climb and hit a fresh record high of $2,783.95 per ounce on Tuesday.
Prices have been rising due to increased safe-haven demand ahead of the US Presidential elections next week.
The uncertainty over the outcome has fueled gold’s rally in the market.
Moreover, expectations of more interest rate cuts by the US Federal Reserve are also boosting sentiments for the yellow metal.
Prices have also jumped more than 30% since the start of 2024, and risen 4% since October 1.
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