Wall Street finished Tuesday with a split decision. The Dow Jones Industrial Average climbed more than 1% and the S&P 500 added modestly, while the tech-heavy Nasdaq Composite slipped by a hair. Investors rotated toward healthcare, financials and industrial names, helped by solid earnings and a pullback in oil prices, while big technology stocks stalled ahead of a heavy slate of earnings from Netflix, SpaceX, Meta and Tesla.
What Moved Markets
The Dow gained 529.85 points, or 1.02%, to close at 52,495.88. The S&P 500 rose 21.84 points, or 0.28%, to finish at 7,712.57. The Nasdaq Composite eased 6.07 points, or 0.02%, to end at 26,424.82. Small company stocks outperformed, with the Russell 2000 gaining about 1.7%.
Healthcare was the standout sector, with the group reaching a record high, and financials also advanced. Energy shares lagged as crude oil retreated. West Texas Intermediate fell 0.9% to about $102.75 a barrel, though it is still up nearly 14% for the month, and oil remains a key worry because high energy prices can feed into inflation. Treasury yields also eased slightly, with the 10-year yield dipping to roughly 5.12%. Lower yields tend to help stocks, since they reduce borrowing costs and make shares more attractive relative to bonds.
On the economic front, the housing market showed continued strain. Housing starts fell 5.2% in September to an annual pace of about 1.2 million homes, and pending home sales dropped 7.3% from August. High borrowing costs are weighing on buyers and builders alike.
Notable Movers
3M (MMM) rose about 5.8%, its best day since July and the top performer in the Dow. The company beat third-quarter profit expectations, raised its full-year earnings forecast and expanded a data center partnership with Amazon.
Braze (BRZE) surged roughly 52% after Salesforce (CRM) agreed to buy the customer engagement software company for about $5.66 billion in cash, or $47.50 per share. That price is a premium of about 58% to Braze’s previous close. Salesforce shares were little changed.
Ally Financial (ALLY) gained about 1% after reporting third-quarter earnings of $1.34 per share, up 16% from a year ago, and raising its quarterly dividend by 17%.
Eli Lilly (LLY) traded up nearly 5% to a record high in afternoon trading, leading large drugmakers higher. On the downside, General Motors (GM) fell roughly 7% in afternoon trading after warning of pressure from higher commodity costs and softer truck sales.
Looking Ahead
Earnings stay in the spotlight. Netflix (NFLX) and SpaceX (SPCX) report after the close Tuesday, and Meta (META) and Tesla (TSLA) follow on Wednesday. Because these companies are closely tied to the artificial intelligence trade, their results and spending plans could set the tone for the tech sector, which has been choppy in recent sessions. Investors will also keep an eye on oil prices, Middle East headlines and Treasury yields, all of which have been driving the market’s mood. As always, a single day’s move does not make a trend, so it pays to stay focused on your long-term plan.