Updated 2 min read
US stock futures hit pause on Tuesday as Wall Street set aside the trade war and shutdown sagas to filter through the latest wave of quarterly results from the likes of General Motors (GM) and Coca-Cola (KO).
The Dow Jones Industrial Average (^DJI), the S&P 500 (^GSPC), and the tech-heavy Nasdaq Composite (^IXIC) all hovered around the flatline at the market open. On Monday, stocks gained as Apple (AAPL) hit a new record high, boosting tech names.
Investors are focused on the flood of major earnings reports due this week, headlined on Tuesday by streaming giant Netflix (NFLX) and GM. The Big Three automaker’s stock surged after GM raised its full-year profit outlook, while Coca-Cola (KO) popped as earnings topped estimates.
Later, investors will watch Netflix’s results due after market close for insights into its ad business and live programming after a volatile stretch for the streaming giant’s shares.
Worries about US-China trade tensions moved to the back burner even as the two countries prepared the ground for negotiations to resume. Trump signed an rare earths deal with Australia, a move aimed squarely at China. But the president said he expects to reach a “fair deal” when he meets his Chinese counterpart President Xi in South Korea next week.
Meanwhile, the government shutdown continues, now the third-longest federal work stoppage in US history. There are no plans in motion to end the closure, even as economic pressures mount.
That puts the spotlight on Federal Reserve speakers, with ears pricked for clues to the central bank’s thinking on interest rates ahead of its policy meeting next week.
Fed Governor Christopher Waller is scheduled to appear on Tuesday, in the runup to the Bureau of Labor Statistics finally releasing the September Consumer Price Index report on Friday. That inflation data could move the needle for markets, which are currently pricing in another quarter-point rate cut.
LIVE 11 updates
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GSI Technology stock soars after Cornell paper suggests its chips could match Nvidia’s
GSI Technology (GSIT) stock continued to rip higher on Tuesday following reports of a breakthrough in its AI chip platform that could rival Nvidia’s (NVDA).
Shares of the Sunnyvale, Calif.-based company surged another 30% to over $17 each at the market open before paring gains to around 10%. The stock rocketed 155% higher on Monday, sending its market cap to around $377 million.
Nvidia stock dipped 0.7% on Tuesday.
The massive move in the company’s stock price came after researchers at Cornell University published a paper stating that the GSI’s Gemini-I APU could perform retrieval-augmented generation (RAG) tasks at similar speeds as Nvidia’s A6000 chips while using 98% less energy.
An APU, or associative processing unit, is a single chip that combines a central processing unit (CPU) and a graphics processing unit (GPU). The researchers’ findings suggest that GSI’s memory architecture could perform as well as Nvidia’s GPU at a fraction of the energy usage and verified some of the company’s claims.
“Cornell’s independent validation confirms what we’ve long believed — compute-in-memory has the potential to disrupt the $100 billion AI inference market,” GSI Technology CEO Lee-Lean Shu said in a statement.
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Dow jumps as blue-chip earnings roll in, S&P 500 and Nasdaq muted at the open
Stocks rose at the open as investors assessed quarterly reports from General Motors (GM), Coca-Cola (KO), and GE Aerospace (GE) and looked ahead to re from Netflix (NFLX) after the close.
The broad benchmark S&P 500 (^GSPC) neared record highs at the open, rising just above the flat line. The Dow Jones Industrial Average (^DJI) added 1% as earnings reports from blue-chip companies poured in. The tech-heavy Nasdaq Composite (^IXIC) was also roughly flat.
Meanwhile, the 10-year Treasury yield (^TNX) declined by about 3 basis points to 3.95%.
Bitcoin (BTC-USD) snapped a winning streak, falling 1.8% at the open to around the $108,000 level.
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Precious metals slide as US-China tensions ease
Precious metals fell through the early hours of Tuesday’s trading session after President Trump signaled that he is willing to work with China on a trade deal.
Futures on gold (GC=F) lost roughly 2.8%, falling back below $4,300 per troy ounce, while silver (SI=F) and platinum (PL=F) futures both fell by more than 5%.
“I think we’re going to end up having a fantastic deal with China,” Trump said in comments Monday night, after signing a separate deal with Australian Prime Minister Anthony Albanese on critical mineral access. “It’s going to be a great trade deal. It’s going to be fantastic for both countries, and it’s going to be fantastic for the entire world.”
Capital.com senior market analyst Daniela Hathorn noted Tuesday morning that signals of progress in what has become a tit-for-tat trade war between Washington and Beijing seemed to put investors at ease
“The confirmation of willingness to resolve the issues has been enough to remove some of the risk premia in markets, at least for now,” Hathorn wrote.
Precious metals have spent the last few months on a near-historic bull run that saw gold cross $4,000 for the first time and silver cross $50 for the first time since a market panic in the 1980s. Given how quickly the metals have run up, Hathorn said, the market was likely due for a correction.
“The trade had become quite overcrowded and was running a little hot considering the levels both markets were at, so a reversal is not entirely out of the blue,” Hathorn wrote.
However, “The fundamentals haven’t changed, with long-term support still in place.”
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Netflix earnings: Investors weigh ad growth, valuation risks with shares down 8% from June’s record highs
Yahoo Finance’s Allie Canal reports:
Netflix (NFLX) will report third quarter earnings after the bell on Tuesday as investors look for signs of momentum across its advertising business and live programming slate following a volatile stretch for the stock.
Shares have climbed about 40% year to date but have underperformed the broader market and tech peers in recent months amid questions over engagement growth, valuation, and new forms of competition emerging from AI-driven content platforms. …
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GM stock jumps on upbeat full-year guidance, as tariff exposure improves in Q3
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Coca-Cola stock pops as earnings top estimates amid ‘challenging’ environment
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Good morning. Here’s what’s happening today.
Economic data: Philadelphia Fed non-manufacturing index (October)
Earnings calendar: Netflix (NFLX), GE Aerospace (GE), Coca-Cola (KO), Philip Morris International (PM), RTX Corporation (RTX), Intuitive Surgical (ISRG), Texas Instruments (TXN), Danaher Corporation (DHR), Capital One (COF), Lockheed Martin (LMT), Chubb (CB), Northrop Grumman (NOC), 3M (MMM), Elevance Health (ELV), General Motors (GM), Nasdaq Inc. (NDAQ), PACCAR (PCAR), Waste Connections (WCN), EQT Corporation (EQT), Equifax (EFX), Haliburton (HAL), Galaxy Digital (GLXY), Mattel (MAT)
Here are some of the biggest stories you may have missed overnight and early this morning:
GM stock jumps on outlook boost, thanks for Trump
Coca-Cola pops as earnings beat amid ‘challenging’ environment
Rare-earths mining is having a crypto moment
Trump’s Australia rare earths deal is aimed squarely at China
Worried automakers race to beat China’s rare earths deadline
The unexpected ripple effect of the AI boom
ISS recommends investors reject CoreWeave deal for Core Scientific
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Premarket trending tickers: RTX, Philip Morris and Strategy
RTX (RTX) stock rose 5% before the bell after the defense group raised its full-year profit and revenue forecast, a sign that it has managed to avoid the impact of tariffs.
Philip Morris (PM) stock rose 4% before the bell on Tuesday after raising its annual profit forecast for the third time this year, due to strong demand for its portfolio of smoking alternatives.
Strategy (MSTR) stock fell 1% in premarket trading on Tuesday. The company, which is one of the largest holders of bitcoin dipped in early morning trading. Bitcoin also fell 2%.
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Elevance rises after earnings beat as medical costs remain in check
Elevance (ELV) stock rose 4% before the bell on Tuesday after the health insurance company beat Wall Street estimates for its third-quarter earnings report.
Reuters reports:
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GM Q3 earnings preview: Tariff exposure, EV business on investor agenda
Yahoo Finance’s Pras Subramaniam reports:
General Motors (GM) will report third quarter earnings before the opening bell on Tuesday morning as the biggest of the Detroit Three automakers grapples with President Trump’s auto tariffs and an EV business in flux. …
Not surprisingly, GM’s EV sales surged in Q3 ahead of the expiration of the $7,500 federal EV tax credit to record of 66,501 units sold in the quarter
But the EV business is expected to throttle down a bit after expiration of the tax credit.
The automaker said last week it will take a $1.6 billion charge from a reassessment of its EV plans, with $1.2 billion of the impact being non-cash special charges as a result of adjustments to its EV capacity. The other $400 million in cash is primarily related to contract cancellation fees and commercial settlements associated with EV-related investments, GM said.
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Gold maintains near record as US-China tensions lower
Gold (GC=F) has maintained near the record reached on a sweltering rally over the past year. The precious metal continues to find investors despite a cool off in the US-China trade war.
Bloomberg reports:
