*

Indexes mixed: Dow up 0.74%, S&P 500 up 0.13%, Nasdaq down

0.08%

*

Coca-Cola's third-quarter results beat estimates, shares

rise

*

Warner Bros Discovery ( WBD ) jumps after initiating strategic

review

(Updates with analyst comments, early afternoon prices)

By Pranav Kashyap and Twesha Dikshit

Oct 21 (Reuters) - The S&P 500 and Dow indexes advanced

on Tuesday, powered by earnings-driven rallies, while the Nasdaq

lagged as mega-cap tech stocks paused after a strong run.

The results season is in full swing, with corporate giants

such as General Motors ( GM ), GE Aerospace, 3M ( MMM ) and Coca-Cola reporting

their numbers. But with equities hovering near record highs and

valuations stretched, analysts warn that strong numbers alone

may not suffice and companies need to also show margin

resilience and deliver upbeat forecasts to sustain investor

optimism.

"I do think we're going to get a little bit of a pullback

before the year-end rally and maybe it'll be triggered by tech

earnings, maybe something with China-Trump, maybe geopolitical,"

said Thomas Hayes, chairman at Great Hill Capital LLC.

As of 11:33 a.m. ET, the S&P 500 was trading up 0.13%

after recovering opening losses.

GM shares surged 15.4% after it raised full-year

forecast on a brighter tariff outlook. Ford, set to report

results on Thursday, cruised 4.6% higher.

GE Aerospace rose 1.9% after lifting profit forecast,

while RTX jumped 8.5%. Northrop Grumman ( NOC ) and

Lockheed Martin ( LMT ), however, lost 0.3% and 1.6%,

respectively.

Meanwhile, Warner Bros Discovery ( WBD ) said it was

considering an outright sale following interest from several

potential buyers, sending the media conglomerate's shares

soaring 11.3%.

The Dow rose 0.74%, driven by a 5.7% jump in

industrial heavyweight 3M ( MMM ). The company raised its

full-year profit forecast for the second time this year.

Coca-Cola gained 3.4% after the soft drink maker beat

quarterly estimates. A 2.6% gain in Amazon ( AMZN ) further

boosted the index.

Philip Morris ( PM ) sank 6.5% after a downbeat annual

forecast.

The Nasdaq slipped 0.1% as tech and chip stocks lost

momentum.

Nvidia ( NVDA ) fell 0.4%, while Alphabet dropped

4%. Marvell ( MRVL ), Broadcom ( AVGO ) and AMD lost

between 1% and 2%.

Earnings from heavyweights such as Tesla, IBM ( IBM )

, Procter & Gamble ( PG ) and Intel ( INTC ) are also on

deck this week. Netflix ( NFLX ) was up 0.1% ahead of its

results after the bell.

Regional bank earnings are expected to offer fresh clues on

the sector's health after credit quality concerns sparked a

selloff last week.

Industrial stocks added 1.1%, while the S&P

Aerospace and Defense index advanced 0.8%.

TRADE, GOVERNMENT SHUTDOWN WOES LINGER

Markets are awaiting Friday's inflation data, as delayed

economic reports amid the U.S. government shutdown has limited

visibility for investors and policymakers heading into the

Federal Reserve's meeting next week.

A Reuters poll showed the Fed will lower its key interest

rate by 25 basis points this month and again in December.

U.S. President Donald Trump also struck a positive tone on

trade, saying he expects to reach a "fair deal" with Chinese

President Xi Jinping, while downplaying tensions over Taiwan.

Markets will keep an eye on Trump's upcoming meeting with Xi

on the sidelines of next week's economic summit in South Korea.

Advancing issues outnumbered decliners by a 1.55-to-1 ratio

on the NYSE and by a 1.04-to-1 ratio on the Nasdaq.

The S&P 500 posted 19 new 52-week highs and no new lows,

while the Nasdaq Composite recorded 37 new highs and 45 new

lows.