The Stock Market Took a Breather: GM and Coca-Cola Results Stand Out

On Tuesday, U.S. stock futures held steady as Wall Street braced for the latest quarterly reports from companies like General Motors (GM) and Coca-Cola (KO), leaving behind stories of trade wars and government shutdowns.

The Dow Jones Industrial Average (^DJI), S&P 500 (^GSPC), and technology-heavy Nasdaq Composite Index (^IXIC) showed little movement at the market open. On Monday, Apple (AAPL) set a new record, boosting technology stocks.

Investors focused on major earnings reports expected this week. On Tuesday, streaming giant Netflix (NFLX) and GM's results are expected to draw attention. General Motors shares rose after the company raised its profit forecast for 2023, while Coca-Cola also stood out with stronger-than-expected earnings.

Investors will analyze Netflix's results after the market closes, providing an essential opportunity to interpret the dynamics behind impressive financial results and popular programming.

As U.S.-China trade tensions fade into the background, both countries reportedly prepare for negotiations. President Trump expressed hopes for a “fair agreement” in upcoming talks with China while signing a rare earth agreement with Australia.

Meanwhile, the government shutdown continues as the third longest federal work stoppage in U.S. history. There is no plan for the shutdown to end, and economic pressures continue to mount.

This situation brings Federal Reserve speakers into the spotlight. There are expectations for clues regarding interest rates ahead of next week's policy meeting. Fed official Christopher Waller will speak on Tuesday. Additionally, the Consumer Price Index report for September, to be released on Friday, is expected to have significant market impacts.

At the initial open, stocks increased; General Motors (GM), Coca-Cola (KO), and GE Aerospace (GE) reports were evaluated while awaiting Netflix’s results. The S&P 500 (^GSPC) approached record highs at the open. The Dow Jones Industrial Average (^DJI) rose by 1%, gaining value following earnings reports from blue-chip companies.

Meanwhile, the yield on 10-year Treasury notes (^TNX) decreased by about 3 basis points, falling to 3.95%.

Bitcoin (BTC-USD) dropped 1.8% at the open to $108,000. Precious metals also declined after Trump indicated readiness to negotiate a trade deal with China. Gold futures fell nearly 2.8%, dropping below $4,300 per troy ounce, and both silver and platinum lost more than 5% in value.

Top market analyst Daniela Hathorn noted that signs of progress in the trade war between Washington and Beijing had a calming effect on investors during the morning hours. "The willingness to address issues has been enough, at least for now, to reduce some risk premiums in the markets," she said.

However, precious metals have witnessed a historic bull run in recent months. Gold surpassed $4,000 for the first time, while silver exceeded $50. Yet, Hathorn emphasized that a correction could be expected after the rapid rise in metals. "The market had become overcrowded, and given these levels, a reversal was anticipated," she said.

Still, she stated, "The fundamental indicators haven't changed, long-term support remains intact."