US open: Economic data, bonds drag on stocks

(Sharecast News) - Wall Street's main equity gauges were dipping on Tuesday as investors digested another barrage of corporate earnings and mostly stronger-than-expected economic reports. As of 1537 BST, the Dow Jones Industrials had drifted lower by 0.11% to 33,944.94, alongside a 0.14% decline for the S&P 500 to 4,368.15, while the Nasdaq Composite was off by 0.29% to 13,528.09.

The yield on the benchmark 10-year U.S. Treasury note was trading 12 basis points higher at 4.833%, having earlier hit 4.863%.

In the background, Fed funds futures were pricing in roughly 40% odds of a 25 basis point hike in the Fed funds rate to 5.5-5.75% by March 2024.

Yet by the following May the odds of a cut to 5.0-5.25% were being put at about 30%.

On the geopolitical front meanwhile, Russian President Vladimir Putin was due to meet China's Xi Jinping, in Beijing, on Wednesday.

And overnight Iran's foreign minister warned that what he termed 'resistance' groups in the region might carry out pre-emptive strikes against Israel "in the coming hours", although on other occasions Iran had said they themselves were not planning on entering the conflict directly.

U.S. President Joe Biden, meanwhile, was due to travel to Israel, also the next day.

"The point to make here regarding the 'markets' is just how bad investors are at pricing geopolitical risk, and how hard it is to try to price in the tail risks of a wider conflict," said analyst Neil Wilson from Markets.com.

"We don't yet know how this plays out so we are discounting lots of potential outcomes and working through it day by day."

In the corporate arena, shares of Bank of America were trading higher in the wake of the lender's third quarter results, but Goldman Sachs and BNY Mellon were on the back foot following their own.

According to the Department of Commerce, U.S. retail sales jumped at a 0.7% pace in September month-on-month (consensus: 0.3%), while industrial production rose by 0.3% (consensus: -0.1%).

The National Association of Home Builders' housing market index on the other hand frll from a reading of 44 for September to 40 in October (consensus: 44).

Dow Jones - Risers

Chevron Corp. (CVX) $167.17 1.07% Boeing Co. (BA) $186.68 0.95% Coca-Cola Co. (KO) $53.81 0.71% Nike Inc. (NKE) $102.63 0.58% Caterpillar Inc. (CAT) $272.16 0.51% Salesforce.Com Inc. (CRM) $209.56 0.49% Unitedhealth Group Inc. (UNH) $540.65 0.49% Dow Chemical Co. (DOW) $50.40 0.43% Travelers Company Inc. (TRV) $168.00 0.21% 3M Co. (MMM) $90.09 0.17%

Dow Jones - Fallers

Intel Corp. (INTC) $35.82 -2.03% Cisco Systems Inc. (CSCO) $53.23 -1.72% Goldman Sachs Group Inc. (GS) $309.28 -1.63% Johnson & Johnson (JNJ) $155.43 -1.33% Amgen Inc. (AMGN) $283.36 -1.23% Apple Inc. (AAPL) $177.04 -0.94% Merck & Co. Inc. (MRK) $103.23 -0.87% Home Depot Inc. (HD) $295.62 -0.57% Procter & Gamble Co. (PG) $145.60 -0.32% International Business Machines Corporation (CDI) (IBM) $138.89 -0.23%

S&P 500 - Risers

VF Corp. (VFC) $18.04 11.43% Under Armour Inc. Class A (UAA) $7.39 5.64% Under Armour, Inc. (UA) $6.88 5.44% Hanesbrands Inc. (HBI) $4.39 5.16% Kohls Corp. (KSS) $20.02 4.82% Mattel Inc. (MAT) $21.33 3.87% Gap Inc. (GPS) $12.52 3.86% Dollar General Corp (DG) $117.79 3.72% DaVita Inc (DVA) $77.29 3.65% Dollar Tree Inc (DLTR) $114.04 3.58%

S&P 500 - Fallers

Dxc Technology Company (DXC) $20.45 -8.07% Bank Of New York Mellon Corp. (BK) $39.90 -4.64% Nvidia Corp. (NVDA) $441.43 -4.23% Charles Schwab Corp. (SCHW) $52.43 -2.40% Broadcom Inc. (AVGO) $882.36 -2.24% F5 Inc. (FFIV) $150.72 -2.09% Intel Corp. (INTC) $35.82 -2.03% Juniper Networks Inc. (JNPR) $25.80 -1.86% Revvity, Inc. (RVTY) $104.60 -1.84% Eli Lilly and Company (LLY) $605.41 -1.82%

Nasdaq 100 - Risers

Qurate Retail Inc. (QRTEA) $0.56 4.67% Dollar Tree Inc (DLTR) $113.97 3.51% Hasbro Inc (HAS) $58.46 2.89% Expedia Group Inc. (EXPE) $101.57 1.90% Biomarin Pharmaceutical Inc. (BMRN) $86.36 1.85% DENTSPLY Sirona Inc. (XRAY) $31.92 1.70% Monster Beverage Corp (MNST) $49.49 1.68% Workday, Inc. (WDAY) $219.00 1.52% Intuitive Surgical Inc. (ISRG) $277.61 1.26% Align Technology Inc. (ALGN) $275.03 0.98%

Nasdaq 100 - Fallers

Nvidia Corp. (NVDA) $440.75 -4.38% Western Digital Corp. (WDC) $43.94 -3.96% Baidu Inc. (BIDU) $120.30 -3.69% JD.com, Inc. (JD) $26.75 -3.24% Broadcom Inc. (AVGO) $879.60 -2.54% NetEase Inc. Ads (NTES) $103.61 -2.38% Intel Corp. (INTC) $35.74 -2.24% Sirius XM Holdings Inc (SIRI) $4.74 -2.17% Cisco Systems Inc. (CSCO) $53.30 -1.59% KLA-Tencor Corp. (KLAC) $484.03 -1.46%