S&P 500 climbs as focus shifts to Fed meeting
2023.10.31 16:06
© Reuters
Investing.com — The S&P 500 climbed Tuesday, as investors digested a raft of corporate earnings and further signs of weakness in the consumer with just a day to go until the Federal Reserve’s monetary policy decision.
The rose 0.6%, the gained 0.5%, and the jumped 0.3% or 107 points.
Caterpillar, JetBlue disappoint on earnings stage
Caterpillar (NYSE:) fell 6% after the industrial equipment maker’s order backlog narrowed, pointing to signs of slowing equipment demand and offsetting that topped on both the top and bottom lines.
JetBlue Airways Corp (NASDAQ:) was also punished for weaker-than-expected and the airline cut its annual guidance, citing a “challenging operation backdrop.” Its shares fell 10%.
Wolfspeed rally support rise in chip stocks; AMD eyed
Wolfspeed Inc (NYSE:) rallied 23% to lift the broader chip sector after delivering better-than-feared . But some on Wall Street remain cautious on the stock awaiting further visibility on performance of its Mohawk Valley chip-making factory, which was opened last year.
“While we view WOLF’s progress as substantial, we remain on the sidelines pending further derisking of Mohawk Valley,” Oppenheimer said in a note.
The uptick in chip stocks comes just hours ahead of the quarterly results from Advanced Micro Devices Inc (NASDAQ:) due after the market closes.
“AMD’s CQ3 estimates should be achievable, particularly assuming some benefit from improving consumer PC shipments,” Wedbush said in a recent note.
Consumer confidence falls for third-month in a row; Fed decision in focus
in October fell for the third-straight month, although the decline was less than economists had expected as inflation concerns continue to grow.
“Write-in responses showed that consumers continued to be preoccupied with rising prices in general, and for grocery and gasoline prices in particular,” Dana Peterson, Chief Economist at The Conference Board said on Tuesday.
The news come just hours ahead of the Fed’s two-day meeting, which is expected to culminate in an unchanged decision on .
