Nasdaq rises while Dow falls on Election Day
US stock indexes moved in opposite directions on the day of the midterm elections: the Nasdaq Composite and S&P 500 rose, while the Dow Jones Industrial Average declined. Investors also assessed the latest quarterly results from several companies, while the yield on the 10-year US Treasury note moved higher.
- The Nasdaq Composite rose 0.81 percent and the S&P 500 gained 0.38 percent.
- The Dow Jones Industrial Average fell 0.49 percent according to Tuesday morning data.
- The yield on the 10-year US Treasury note rose to 4.958 percent.
- Palantir's revenue rose 96 percent year over year, while Ibotta's revenue increased 17 percent.
- US midterm election results were not yet available when the report was prepared.
Nasdaq rises, Dow weakens
Tuesday morning trading in the US stock market reversed the previous day's pattern. On Monday, the Dow Jones Industrial Average was the only one of the four major US stock indexes to close higher. By 10:26 a.m. Eastern time on November 3, the S&P 500, Nasdaq Composite and Russell 2000 were all higher, while the Dow was in negative territory.
According to real-time index data reported by CNBC, the S&P 500 stood at 7569.78 points, up 28.38 points, or 0.38 percent. The Dow fell 252.51 points, or 0.49 percent, to 51 731.47. The Nasdaq Composite rose 202.97 points, or 0.81 percent, to 25 367.33.
Only delayed data was available for the Russell 2000. At 10:10 a.m., the index stood at 2820.95 points, up 15.08 points, or 0.54 percent. At Monday's close, the S&P 500 had fallen 0.51 percent and the Nasdaq 1.07 percent, while the Dow had risen 0.41 percent.
Higher Treasury yields and fresh economic data
The yield on the 10-year US Treasury note was 4.958 percent at 10:26 a.m., up 6.4 basis points from the previous close reported by Tradeweb. According to the US Treasury's daily par yield curve, the 10-year par yield was 4.91 percent on Monday, the two-year yield was 4.59 percent and the 30-year yield was 5.28 percent.
Treasury issuance is also on the agenda this week. The Treasury Department said Monday that it expects to raise $618 billion in privately held net marketable debt between October and December. That is $10 billion less than the amount announced in August. Further details of the quarterly refunding will be released at 8:30 a.m. on Wednesday, November 4.
At its meeting on October 27 and 28, the Federal Reserve left the federal funds target range at 3.75 to 4 percent. Lisa D. Cook and Beth M. Hammack voted in favor of a 0.25-percentage-point increase. The next meeting will be held on December 8 and 9.
According to data from the Bureau of Labor Statistics, there were 7.5 million job openings in September, little changed from the previous month. The number of hires was 5.4 million, separations totaled 5.3 million and quits stood at 3.4 million. The Institute for Supply Management's manufacturing purchasing managers' index rose to 55.5 percent in October, one percentage point above the September reading. Manufacturing activity thus expanded for the tenth consecutive month.
Voting was under way in the US midterm elections, but results were not yet available when this report was prepared.
Corporate results sharply moved individual stocks
Quarterly reports released on Monday and Tuesday significantly moved the prices of several stocks. Palantir Technologies' third-quarter revenue rose 96 percent year over year to $2.313 billion, exceeding $2 billion for the first time. US commercial revenue increased 148 percent to $984 million, surpassing US government revenue of $953 million. The company reported GAAP net income of $1.128 billion, or $0.44 per diluted share. The stock stood at $169.47 at 10:26 a.m., down 4.98 percent.
NVIDIA shares rose 2.97 percent to $208.07. The company said on October 26 that it was expanding its work with Meta around Muse and the Muse model family, while Meta plans to expand its use of NVIDIA infrastructure, including Vera Rubin and Vera CPUs. NVIDIA is investing $3 billion in Meta's share issuance. The company will report its fiscal third-quarter results on November 17.
Pfizer reported third-quarter revenue of $16.6 billion, broadly unchanged on an operational basis. Revenue excluding Comirnaty and Paxlovid rose 7 percent, while Paxlovid revenue fell 63 percent. The company expects full-year revenue of between $62.0 billion and $64.0 billion. Its stock fell 0.37 percent to $30.56.
Apollo Global Management reported adjusted net income of $1.3 billion, or $2.07 per share, while GAAP net loss attributable to common stockholders was $1.1 billion, or $1.78 per share. The company's assets under management totaled approximately $1.07 trillion as of September 30. The stock fell 4.45 percent to $114.15.
Ibotta's revenue rose 17 percent to $97.8 million, while adjusted EBITDA was $23.8 million. The stock rose 28.02 percent to $64.10. The company expects fourth-quarter revenue of between $94 million and $98 million.
