The Nasdaq Composite concluded Tuesday at an unprecedented peak as investors analyzed the latest corporate earnings and economic statistics. The technology-centric Nasdaq surged by 0.8% to reach 18,712.8, while the S&P 500 climbed 0.2% to 5,832.9. In contrast, the Dow Jones Industrial Average declined by 0.4%, settling at 42,233.1.
Notably, only the communication services and technology sectors experienced gains, whereas utilities suffered the most significant decline. In corporate updates, Cadence Design Systems ($CDNS) shares soared nearly 13%, emerging as the leading performer on both the S&P 500 and the Nasdaq. Late Monday, the company adjusted its full-year forecast, enhancing the lower end of its earnings and revenue range following a third quarter that exceeded expectations. Incyte ($INCY) recorded the second-largest increase on the S&P 500, rising by 12%, after posting a positive revenue report for the third quarter on Tuesday. Conversely, Ford Motor ($F) experienced an 8.4% drop, positioning it as the second-lowest performer on the S&P 500.
This decline came after British union Unite announced that the automaker’s UK workforce would initiate a strike starting Wednesday due to failed labor negotiations. Late Monday, Ford had indicated that it expected its adjusted consolidated earnings before interest and tax to be $10 billion for 2024, landing at the lower end of its previous guidance range of $10 billion to $12 billion. On the Nasdaq, PayPal ($PYPL) emerged as the worst performer on Tuesday, declining by 4%, attributed to the digital payments giant’s third-quarter revenue growth falling short of expectations, despite earnings growth surpassing analysts’ predictions. In bond market developments, the yield on the US two-year treasury note decreased by 3.8 basis points to reach 4.10%, while the 10-year yield dipped two basis points to 4.26%. Economic highlights revealed that US consumer confidence exceeded anticipations this month, although the annual inflation forecast ticked upwards, as reported by the Conference Board.
"Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years," stated Conference Board Chief Economist Dana Peterson. Furthermore, US job openings saw a decline last month, while separations surged alongside an increase in layoffs, per government data. On Friday, the Bureau of Labor Statistics is set to announce that the US economy added 111,000 jobs in October, indicating a slowdown from the previous month’s increase of 254,000, backed by a consensus compiled by Bloomberg. US home prices reached a new all-time high in August; however, the rate of annual growth slowed to its most gradual pace since mortgage rates peaked the previous year, as reported by S&P Global ($SPGI) through its division S&P Dow Jones Indices. Separately, the Federal Housing Finance Agency reported a 0.3% increase in home prices on a seasonally adjusted basis for August, contrasting with the prior month’s upwardly revised gain of 0.2%.
The consensus projection was for a 0.1% rise based on a Bloomberg survey. West Texas Intermediate crude oil remained stable at $67.41 per barrel on Tuesday. Gold prices rose by 1% to $2,784.60 per troy ounce, while silver climbed 1.8% to $34.61 per ounce..