Closing Bell: Earnings Take the Spotlight as Trade Fears Fade

Wall Street’s Focus Shifts from Washington to Corporate Earnings as Q3 Results Roll In

Closing Snapshot

S&P 500: 6,644.31 (DOWN 0.16%)
Dow Jones: 46,270.46 (UP 0.4%)
Nasdaq Composite: 22,521.70 (DOWN 0.8%)
Russell 2000: 2,495.50 (UP 1.4%)
Gold: 4,173.80 per ounce (UP 0.25%)
WTI Crude: 58.26 per barrel (FLAT)
VIX: 20.81 (UP 9%)

Summary

Markets took a breather today as investors pivoted from politics to earnings. The Dow stayed in positive territory, helped by strong bank earnings, while the Nasdaq drifted as mega-cap tech lagged. Early reports from JPMorgan and Johnson & Johnson set an upbeat tone for the third-quarter earnings season, though traders remained cautious ahead of key inflation data later in the week. Gold extended its climb to another record, signaling that caution still lingers beneath the surface. Oil and Treasury yields stabilized following yesterday’s sharp rebound. Overall, it was a slow day, as Wall Street recalibrated expectations after Monday’s “relief rally”.

Stocks on the Move (by Sector)

Financials

• JPMorgan (JPM) lagged 2%, even after beating earnings estimates with strong investment banking and trading results. The bank raised its full-year net interest income forecast to roughly $95.8 billion.

• Citigroup (C) gained nearly 4% ahead of its earnings release later in the week.

• Wells Fargo (WFC) added 7% as regional lenders tracked large-cap peers higher.

Technology

• Nvidia (NVDA) slipped 4.4% as investors rotated out of recent AI winners.

• Apple (AAPL) stayed mostly flat following fresh reports of slower iPhone shipments in China.

• Microsoft (MSFT) also stayed mostly flat among broader large-cap weakness.

Healthcare

• Johnson & Johnson (JNJ) held after topping consensus estimates and reaffirming full-year guidance.

• Pfizer (PFE) closed flat on a day of short covering after a multi-week slide.

• Eli Lilly (LLY) saw modest volume after its diabetes drug trial showed strong results, yet the price remained stagnant.

Industrials

• Boeing (BA) held as investors reacted to positive delivery data.

• Caterpillar (CAT) added 4.5% as trade fears continued to fade.

• Deere & Co. (DE) rose 2% on improving global demand prospects.

Consumer

• Amazon (AMZN) slipped 1.5% following Monday’s strong run-up.

• Walmart (WMT) edged higher by 5% as investors rotated into staples.

• Nike (NKE) added 0.4% ahead of next week’s retail earnings slate.

Energy

• Exxon Mobil (XOM) held alongside modest crude weakness.

• Chevron (CVX) also held after analysts trimmed price targets.

• ConocoPhillips (COP) dipped slightly with energy benchmarks softer on mixed demand signals.

Also notable: Tesla (TSLA) fell 1.5% as investors rotated away from high-growth names, while Netflix (NFLX) slipped 0.3% ahead of its quarterly results due after the close. Newmont (NEM) rose 1.2% as gold miners continued to benefit from record bullion prices.

Macro Backdrop

Markets appear to be finding their footing as attention moves decisively toward earnings. The initial wave of reports showed resilience in the banking and healthcare sectors, providing a positive offset to weakness in technology. A softer dollar and stabilizing Treasury yields kept conditions calm, while gold’s continued strength reflected the market’s ongoing caution. Despite fading tariff headlines, traders remain mindful of the broader policy backdrop, with the next test likely to come from upcoming inflation data and the Fed’s communications later this week. In the absence of new shocks, corporate results now stand as the clearest gauge of market direction.

Key Takeaways

1. The Dow outperformed as financials and industrials led modest gains.

2. Tech lagged after recent strength, dragging the Nasdaq lower.

3. Early Q3 earnings from JPMorgan and Johnson & Johnson exceeded expectations.

4. Gold extended its record run, signaling lingering investor caution.

5. Market attention now shifts to the next wave of corporate results and inflation data.

What to Watch Tomorrow

8:30 AM (ET): CPI Report (Sep.)

Critical inflation data that could shape rate expectations and market direction.

9:00 AM (ET): Bank of America (BAC) and Morgan Stanley (MS) Earnings

Key insights into trading activity and consumer credit trends.

2:00 PM (ET): FOMC Meeting Minutes (Sep.)

Traders will scrutinize for clues on the Fed’s next move.

Post-Close: United Airlines (UAL) Earnings

Early read on consumer travel and discretionary demand.

Closing Thoughts

Strong results from banks and healthcare provided early support, even as tech cooled and volatility crept higher. With inflation data on deck and more earnings due midweek, investors seem content to wait for confirmation before pushing the next move. The market has found its footing, yet conviction remains fleeting.