US benchmark stock indexes experienced a minor decline on Tuesday as investors braced for the upcoming consumer price index report, marking the first release post Donald Trump’s victory over Kamala Harris in the 2024 presidential election. The Nasdaq slipped 0.34% to 19,234.86, while the S&P 500 dropped 0.45% to 5,974.76, and the Dow Jones Industrial Average decreased 0.67% to 43,996.2 during midday trading.
Leading the decliners were materials and utilities, whilst consumer staples and communication services were ahead in the gainers' list. The Consumer Price Index (CPI) for October, which is scheduled for release on Wednesday, is anticipated to rise by 0.2% sequentially and 2.6% annually, indicating a potential increase from the 2.4% annual rise recorded in September, as noted by Stifel Chief Economist Lindsey Piegza.
Meanwhile, the National Federation of Independent Business reported that the monthly Small Business Optimism Index improved to a reading of 93.7 in October from September's 91.5, surpassing last year's figure of 90.7. In corporate news, shares of Shopify surged 26% on Tuesday following a report of their Q3 revenue climbing to $2.16 billion, up from $1.71 billion last year.
Home Depot announced its fiscal Q3 adjusted earnings at $3.78 per diluted share on revenue reaching $40.22 billion, exceeding market expectations, though its shares fell by 0.8% in recent trading. Activist investor Elliott Investment Management has called on Honeywell International to split into two independent entities to separate its Aerospace and Automation sectors, asserting that this division could result in share-price increases of 51% to 75% over the next two years, based on their investment of over $5 billion in the company.
Honeywell shares gained 3% around midday on Tuesday. In bond markets, the US 10-year Treasury yield increased by 13.3 basis points to 4.441%, while the two-year rate rose by 11.1 basis points to 4.365%. The US Dollar Index climbed 0.57% to 106.15. West Texas Intermediate crude oil prices edged up 0.31% to $68.25 per barrel.
Meanwhile, gold prices fell by 0.6% to $2,602 an ounce, whereas silver saw a slight increase of 0.19% to $30.67 an ounce..