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3M ( MMM ) gains after lifting adjusted profit forecast
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GE Aerospace drops as supply constraints weigh on revenue
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General Motors ( GM ) up after Q3 results beat estimates
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Futures down: Dow 0.36%, S&P 500 0.47%, Nasdaq 0.59%
(Updated at 8:30 a.m. ET/1230 GMT)
By Lisa Pauline Mattackal and Purvi Agarwal
Oct 22 (Reuters) - U.S. stock indexes were on track for
a lower open on Tuesday as rising Treasury yields pressured
rate-sensitive shares, while investors parsed the latest set of
company results to gauge the health of the corporate sector.
3M ( MMM ) jumped 5.6% before the bell after the industrial
conglomerate raised the lower end of its full-year adjusted
profit forecast.
GE Aerospace fell 5.2% despite raising its profit
forecast for 2024 as persistent supply constraints impacted its
revenue, highlighting the difficulty some companies may face
this year in trying to impress investors.
"GE Aerospace had pretty good earnings overall and raised
their full year guidance ... but even with the good earnings,
not quite good enough," said JJ Kinahan, CEO, IG Group North
America.
Dow E-minis were down 157 points, or 0.36%, U.S.
S&P 500 E-minis were down 27.75 points, or 0.47%, and
Nasdaq 100 E-minis were down 121.5 points, or 0.59%.
Further pressuring equities, U.S. Treasury yields rose as
investors gauged the impact of the upcoming presidential
election on fiscal policy, while reassessing the effect of a
robust American economy on the Federal Reserve's policy
trajectory.
The yield on the benchmark 10-year note rose as
high as 4.222%, continuing a steady climb since early October,
after a bumper jobs report led investors to dial back
expectations for monetary policy easing through the year.
Rate-sensitive megacap stocks slipped, with Tesla
down 0.8% and Apple ( AAPL ) falling 1.1%.
Stocks retreated from record highs on Monday as investors
took a breather following six consecutive weeks of advances for
major indexes, even as gains in Nvidia helped the Nasdaq edge
higher.
Kinahan said asset prices were likely resetting after a
record run.
Among other earnings, General Motors ( GM ) gained 0.9%
after the legacy carmaker's third-quarter results beat Wall
Street estimates, and Lockheed Martin ( LMT ) dipped 1% after
results.
Baker Hughes ( BKR ) and Texas Instruments ( TXN ) are
scheduled to report results after the bell.
Estimated third-quarter year-over-year earnings growth for
the S&P 500 is 6.5% excluding the energy sector and 4%
overall, according to LSEG data.
Futures tracking the economically sensitive small-cap
Russell 2000 lost 0.6%.
Remarks from Philadelphia Fed President Patrick Harker are
expected later in the day.