The Dow Jones edged higher Tuesday morning while the S&P 500 and the Nasdaq rose amid a flurry of earnings, including General Electric and General Motors. Meanwhile, the Federal Reserve meeting gets underway as Microsoft, Google parent Alphabet and Visa report after the close.
The Dow Jones index is riding an 11-day win streak through Monday, its longest in six years. The S&P 500 and Nasdaq rose modestly Monday, both just below 15-month highs, though growth stocks are still under a little pressure. China's woes to revive the ailing property sector buoyed U.S.-listed China stocks on Monday as well as industrial commodities such as crude oil and copper.
Key Earnings
General Motors, General Electric and RTX, formerly Raytheon Technologies, reported better-than-expected earnings and all raised their full-year outlook. GM stock fell solidly as it backs away from a handle buy point. GE stock popped, moving to the top of a buy range. And RTX stock plunged after disclosing a Pratt & Whitney jet defect.
Late Monday, Cadence Design Systems, F5, NXP Semiconductor, Nucor, Medpace and Brown & Brown reported earnings. FFIV jumped but came off early highs. NXPI stock, Nucor, BRO and Medpace rose modestly to solidly. CDNS stock fell modestly.
As for big earnings late Tuesday, Microsoft is close to record highs, while Google stock is working on a handle entry. Visa stock is in a buy range.
Microsoft stock and Cadence Design are on the IBD Long-Term Leaders list. CDNS stock is on the IBD Big Cap 20.
Dow Jones Today
The Dow Jones edged higher vs. fair value. The S&P 500 advanced 0.1%. The Nasdaq climbed 0.3%.
Elsewhere, the 10-year Treasury yield rose a few basis points to 3.89%. Crude oil prices climbed slightly. Copper prices rose nearly 2%.
Fed Meeting
The two-day Fed meeting gets underway Tuesday, with a policy announcement due Wednesday at 2 p.m. ET. Markets have a quarter-point Fed rate hike locked, but see only a modest chance of yet another move before the year's end. The question is how strongly will Fed chief Jerome Powell and policymakers make the case for an additional rate hike.
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Stock Market Rally
The Dow Jones Industrial Average climbed 0.5% in Monday's stock market trading. The S&P 500 index was up 0.4%. The Nasdaq composite rose 0.2%. The small-cap Russell 2000 advanced 0.3%.
Crude oil futures rose 2.2% to $78.74 a barrel, a three-month best.
The 10-year Treasury yield edged up about 2 basis points to 3.855%.
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Microsoft, Google Earnings
Microsoft and Alphabet earnings will offer insight into artificial intelligence, cloud computing and more. In particular, investors will want to hear how Microsoft plans to capitalize on its generative AI lead.
MSFT stock rose slightly, bouncing from the 21-day line after hitting a record high last week. GOOGL stock edged lower, trying to get above the 50-day line within its cup-with-handle base, according to MarketSmith.
The results, outlook and commentary could have a huge impact on software plays, AI chipmakers such as Nvidia and other suppliers.
Visa Earnings
Visa earnings will signal the strength of consumer spending and international travel. Visa stock lost a fraction early Tuesday, still in buy range. Archrival Mastercard, which reports Thursday, also is in buy range.
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