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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

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Indexes up: Dow 0.13%, S&P 500 0.02%, Nasdaq 0.24%

(Updated at 2:26pm/6:26pm GMT)

By Lisa Pauline Mattackal, Purvi Agarwal and Carolina Mandl

Oct 22 (Reuters) - US stocks reversed its course to rise

on Tuesday afternoon while investors kept an eye on higher

Treasury yields and continued to evaluate earnings to assess the

health of American companies.

"The bargain hunting resumed," said Steve Sosnick, head

trader at IBKR Securities Services. On Monday, the Dow Jones

Industrial Average and the S&P 500 closed lower, retreating from

six straight weekly gains.

At 02:26 p.m. the Dow Jones Industrial Average

rose 54.67 points, or 0.13%, to 42,986.27, the S&P 500

gained 1.39 points, or 0.02%, to 5,855.37 and the Nasdaq

Composite gained 44.42 points, or 0.24%, to 18,583.92.

Almost half of the S&P sectors were on the positive

territory, with the consumer staple leading the pack

up 0.83%. The industrials index was down 0.96%.

The change in markets 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

to 4.1957%.

"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

8.52% despite raising its profit forecast for 2024, as

persistent supply constraints impacted its revenue. It pulled

the broader Industrials index 0.96% lower.

Some rate-sensitive megacap stocks slipped, with Apple ( AAPL )

falling 0.52% and Nvidia ( NVDA ) down 0.19%, but

overall the broader technology sector was up 0.19%.

Microsoft ( MSFT ) jumped 2.47%.

"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 lost 4.9% as the

telecom giant missed estimates for third-quarter revenue.

3M ( MMM ) slipped 1%, reversing its premarket gains,

despite raising the low end of its full-year adjusted profit

forecast.

Meanwhile, General Motors ( GM ) leapt 10.06% after the

legacy carmaker's third-quarter results beat Wall Street

estimates, while Lockheed Martin ( LMT ) dipped 6.56% after

results.

Rate-sensitive homebuilding stocks slipped, with the PHLX

Housing index dropping 2.49%, dragged down by a 5.86%

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.

Declining issues outnumbered advancers by a 1.53-to-1

ratio on the NYSE. There were 140 new highs and 54 new lows on

the NYSE.

The S&P 500 posted 11 new 52-week highs and 4 new lows

while the Nasdaq Composite recorded 61 new highs and 53 new

lows.