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Verizon down after missing Q3 revenue estimates

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GE Aerospace drops as supply constraints drag on revenue

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General Motors ( GM ) up after Q3 results beat estimates

(Updated at 4pm ET/8pm GMT)

By Lisa Pauline Mattackal, Purvi Agarwal and Carolina Mandl

Oct 22 (Reuters) - The tech-heavy Nasdaq gained ground

on Tuesday to end a choppy session up as Treasury yields

retreated and investors awaited more earnings to assess the

health of American companies.

"The last couple of days, the market has been trying to

digest the move in treasuries as you've had a pretty big backup

in yields. So the relative calm today in the treasury market

brought a little bit of ease," Jack Janasiewicz, portfolio

manager at Natixis Investment Managers Solutions.

According to preliminary data, the S&P 500

lost 2.89 points, or 0.05%, to end at 5,851.09 points,

while the Nasdaq Composite gained 32.38 points, or

0.17%, to 18,572.38. The Dow Jones Industrial Average

fell 6.18 points, or 0.01%, to 42,925.42.

Almost half of the S&P sectors was in the positive

territory, with the consumer staple leading the pack.

The change in the Nasdaq direction came after the

benchmark 10-year note yields earlier reached

4.222%, the highest since July 26, as investors reassessed

expectations for the Federal Reserve's policy trajectory. But

yields dialed back.

"The big story overall is the rates back up and the

concerns that the Federal Reserve made a policy error by moving

too aggressively in September. That's feeding through to a rate

sell off on a global basis," said Michael Green, portfolio

manager at Simplify Asset Management.

On the corporate front, GE Aerospace slumped

despite raising its profit forecast for 2024, as persistent

supply constraints impacted its revenue. It pulled the broader

Industrials index lower.

Overall the broader technology sector was up after

Treasuries retreated. Microsoft ( MSFT ) jumped.

"During the earnings season, you often get this kind of

choppiness, but there's also increased uncertainty relative to

the interest rate direction," said Chuck Carlson, CEO at Horizon

Investment Services.

The next few weeks are likely to be volatile for equity

markets, as investors scrutinize company earnings, fresh

economic data and results of the U.S. election, followed by a

central bank meeting.

Traders are pricing in a 91% chance of a 25-basis-point

interest-rate cut in November, according to CME's FedWatch.

Among other earnings, Verizon fell as the telecom

giant missed estimates for third-quarter revenue.

3M ( MMM ) slipped, reversing its premarket gains, despite

raising the low end of its full-year adjusted profit forecast.

Meanwhile, General Motors ( GM ) leapt after the legacy

carmaker's third-quarter results beat Wall Street estimates,

while Lockheed Martin ( LMT ) dipped after results.

Rate-sensitive homebuilding stocks slipped, with the PHLX

Housing index dropping, dragged down by a fall in shares

of PulteGroup ( PHM ) despite the company beating profit and

revenue estimates.

"The earnings themselves have been pretty good, it's just

the companies highly sensitive to interest rates are probably

going to find a bit of headwind right now as investors sort out

the whole interest rate story," Carlson said.

Baker Hughes ( BKR ) and Texas Instruments ( TXN ) are

scheduled to report earnings after the bell.