*

Indexes mixed: Dow up 0.05%, S&P 500 up 0.06%, Nasdaq down

0.07%

*

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

rise

*

Warner Bros Discovery ( WBD ) jumps after initiating strategic

review

(Updates on market open)

By Pranav Kashyap and Twesha Dikshit

Oct 21 (Reuters) - Wall Street indexes were mixed on

Tuesday as investors searched for direction amid a flurry of

earnings reports from corporate heavyweights, following a

tech-led rally in the previous session.

While the results season shifted into high gear, analysts

caution that stretched equity valuations and indexes near record

highs may limit the rally's sustainability, suggesting that

strong earnings alone would not suffice unless companies also

demonstrate margin resilience and offer robust forecasts.

"It could disappoint investors if companies don't actually

beat the estimates by a large amount, even though these

estimates are already huge," said Daniela Hathorn, senior market

analyst at Capital.com.

"Clearly there's no desire to be a seller right now because

everyone's expecting the earnings season to be good."

At 09:38 a.m., the Dow Jones Industrial Average rose

22.28 points, or 0.05%, to 46,728.86. The S&P 500 gained

4.15 points, or 0.06%, to 6,739.28, while the Nasdaq Composite

lost 15.57 points, or 0.07%, to 22,974.97.

General Motors ( GM ) shares revved up 12% after a brighter

tariff outlook helped the automaker raise its full-year

forecast.

Peer Ford cruised 2% higher ahead of results on

Thursday.

In consumer staples, Coca-Cola gained 3.5%,

refreshing investor sentiment with a third-quarter beat, driven

by unwavering demand for its sodas.

Philip Morris ( PM ) dropped 6.5% after its results.

In the defense sector, GE Aerospace climbed 2.2%

after raising full-year profit forecast. RTX, too,

bumped up forecasts for the year, sending its shares surging

10.5%.

Northrop Grumman ( NOC ) slipped 2.2% after trimming sales

projection, while Lockheed Martin was marginally lower.

Industrial stocks added 0.4%, while the S&P

Aerospace and Defense index advanced 2.2%.

This week's earnings lineup also includes heavyweights such

as, IBM ( IBM ), Procter & Gamble ( PG ), and Intel ( INTC )

. Netflix slipped 0.2% ahead of its results due after

the market close on Tuesday.

Regional bank earnings will be monitored to get a closer

read on the sector's health after fears of systemic stress

sparked a selloff last week.

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 11.5%.

Sentiment improved after White House economic adviser Kevin

Hassett said on Monday the U.S. government shutdown was likely

to end this week.

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.

Declining issues outnumbered advancers by a 1.28-to-1 ratio

on the NYSE and by a 1.67-to-1 ratio on the Nasdaq.

The S&P 500 posted 13 new 52-week highs and no new lows,

while the Nasdaq Composite recorded 21 new highs and 25 new

lows.