U.S. stocks opened higher on Tuesday, extending the prior session’s technology-led gains, as investors weighed a better-than-expected report on factory orders against new signs that the housing market is losing ground to inflation, one day before the Federal Reserve’s latest interest rate decision.
The S&P 500 rose 0.3% in morning trading, climbing toward the 7,700 level. The Dow Jones Industrial Average added about 40 points, trading near 52,400, and the Nasdaq composite gained 0.5%, building on Monday’s 0.8% advance that was sparked by artificial intelligence company Anthropic’s filing to go public. Chip stocks led again, with Micron Technology up 1.5%.
Factories busy, but businesses cautious
The Commerce Department reported that new orders for durable goods, items built to last at least three years, rose 1.8% in September, beating the 1.5% increase economists had expected, with August’s figure revised up to a 0.1% gain. Transportation equipment led the way with a 4.6% jump, and orders excluding defense rose 2.2%.
The details were less reassuring. A closely watched category that serves as a proxy for business investment in equipment came in weaker than forecast, a sign that companies are still hesitant to make big capital commitments until they hear from the Fed.
Home prices rising, but slower than inflation
A second report carried a quieter message for homeowners. The S&P Cotality Case-Shiller national home price index rose 2.1% in August from a year earlier, up slightly from July’s 1.9% pace, while the Federal Housing Finance Agency’s separate index also showed prices still climbing. Both readings, however, trail overall inflation, meaning that in inflation-adjusted terms the value of the typical American home is roughly flat to falling even as headline prices set records.
For buyers, that is a mixed blessing: competition is cooling in real terms, but elevated mortgage costs keep monthly payments high. For the Fed, housing that no longer outruns inflation removes one argument for keeping rates higher for longer.
Earnings split the scoreboard
Corporate results pulled individual stocks in both directions. Boeing fell after its quarterly results disappointed investors, while JetBlue Airways jumped following its report. Coca-Cola raised its full-year comparable earnings outlook to growth of at least 11%, and Hilton posted stronger-than-expected results, raising its forecast and confirming its stock listing will move to the Nasdaq on Nov. 5. PayPal shares slipped after revenue came in below expectations even as profit beat forecasts.
Markets around the world
Oil prices eased, offering some relief: Brent crude traded near $115 a barrel and U.S. benchmark West Texas Intermediate near $101, though both remain sharply higher this year with the Middle East conflict still in focus. Gold slipped about $13 to roughly $4,025 an ounce. The 10-year Treasury yield held near 5.28%, little changed ahead of the Fed.
Overseas, trading was mixed. Japan’s Nikkei fell 0.8% while Shanghai’s benchmark edged higher, and European indexes were split by midday.
What comes next
The Conference Board’s October consumer confidence reading arrives at 10 a.m. Tuesday, after slipping to 81.9 in September, followed by new home sales figures. Visa and Robinhood report after the closing bell. The Federal Reserve concludes its two-day meeting Wednesday at 2 p.m., and futures markets tracked by CME FedWatch show traders overwhelmingly expect policymakers to hold the benchmark rate steady at 3.75% to 4%. The government’s first estimate of third-quarter GDP and the Fed’s preferred inflation gauge, the PCE price index, both land Thursday.
JBizNews Desk | Wall Street
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