Stock Market Update

[BRIEFING.COM] A strong batch of Q3 earnings reports lifts the DJIA (+0.7%) today, while some weakness in mega-cap and tech names keeps the S&P 500 (+0.1%) and Nasdaq Composite (-0.1%) near their flatlines. The S&P Mid Cap 400 (+0.7%) holds a solid gain, while the Russell 2000 (-0.1%) remains flattish.

Four S&P 500 sectors currently trade in positive territory. 

The consumer discretionary sector (+1.6%) holds the widest gain, as General Motors (GM 67.10, +9.10, +15.69%) is the top performer in the S&P 500 so far. The company beat top and bottom line expectations and raised its FY25 earnings guidance. Notably, the company expects the impacts of tariffs to be smaller than previously anticipated. 

GM's gain sends other automakers higher, including Ford Motor (F 12.57, +0.58, +4.84%), which reports its Q3 earnings Thursday.

Additionally, Amazon (AMZN 223.27, +6.79, +3.14%) provides strong leadership amid a generally underwhelming day for mega-cap stocks.

The Vanguard Mega Cap Growth ETF is flat for the day, and the S&P 500 Equal Weighted Index (+0.6%) outperforms the market-weighted S&P 500 (+0.2%).

The industrials sector (+1.1%) is another point of strength, supported by strong earnings across its defense names.

Earnings beats from GE Aerospace (GE 306.52, +3.84, +1.27%) and RTX (RTX 172.92, +12.20, +7.59%) contribute to a 1.9% gain in the iShares U.S. Aerospace & Defense ETF, even as Lockheed Martin (LMT 492.14, -13.76, -2.72%) and Northrop Grumman (NOC -1.4%) move lower after beating EPS expectations but falling short on revenues.

Elsewhere in the sector, 3M (MMM 163.52, +8.74, +5.65%) contributes to the DJIA's outperformance after beating top and bottom line expectations and raising its FY25 EPS outlook.

Coca-Cola (KO 70.80, +2.36, +3.45%) is another Dow component that moves higher after an earnings beat, though its gain is not enough to offset losses in the consumer staples sector (-0.6%). A majority of the sector's components trade lower, with Philip Morris International (PM 147.06, -11.00, -6.96%) holding the widest loss despite beating top and bottom line estimates and guiding FY25 EPS expectations in line.

The communication services sector (-1.6%) is the only S&P 500 sector with a loss wider than 1.0%, as its largest component, Alphabet (GOOG 249.66, -7.36, -2.86%), moves lower after concerns around an upcoming OpenAI browser announcement. 

Despite the sector's loss, Warner Bros. Discovery (WBD 20.25, +1.93, +10.53%) is one of the best-performing names in the S&P 500, trading higher after CNBC reported that the company is open to a sale.

The information technology sector (+0.1%) holds just a slight gain, but its move into positive territory was pivotal in lifting the S&P 500 (+0.1%) and Nasdaq Composite (-0.1%) from steeper earlier losses.

Today's heavy slate of earnings reports has kept the market active, even as headlines elsewhere remain subdued. The U.S. government remains shut down, no economic data was released this morning, and trade developments with China have largely been unchanged. 

With the market awaiting the next macro catalyst, Q3 earnings continue to drive price action, as companies generally beat expectations and offer positive guidance.