The S&P 500 Index ($SPX) (SPY) is up by +0.60% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +1.23%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.12%. December E-mini S&P futures (ESZ26) are up +0.60%, and December E-mini Nasdaq futures (NQZ26) are up +0.15%.
Stock indexes recovered from early losses today and are moving higher, with the Dow Jones Industrials climbing to a 5-week high. Better-than-expected corporate earnings results are propelling stocks higher today. Chipmakers and AI-infrastructure stocks also recovered from early losses and moved higher. Lower bond yields are also supporting stocks, as the 10-year T-note yield fell -5 bp to 5.09%.
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Today’s US housing news was mixed for stocks. Sep housing starts unexpectedly fell -5.2% m/m to a 4-month low of 1.221 million, weaker than expectations of 1.305 million. Also, Sep pending home sales fell -7.3% m/m and -12.6% y/y, weaker than expectations of -0.5% m/m and -3.9% y/y. Conversely, Sep building permits, a proxy for future construction, fell -0.2% m/m to 1.400 million, stronger than expectations of 1.385 million.
Stocks have support from the prospect of solid quarterly earnings results. According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +25% from a year earlier, up from a July estimate of 22%. As of today, 48 of the S&P 500 companies have reported results, with 79% beating estimates.
Nov WTI crude oil prices (CLX26) fell from a 5-month high today and are down more than -1% on a report that said Qatar and Pakistan had issued a fresh proposal to revive negotiations to bring an end to the Iran war. Crude prices initially jumped more than +5% today amid escalating hostilities in the Middle East and the ongoing Russia-Ukraine war, which are disrupting global energy supplies. Iran said today that two oil tankers struck naval mines along the southern route of the Strait of Hormuz and caught fire. On Monday, Iran said it has “no choice” but to assert control over the Strait of Hormuz and that “the strait belongs to Iran, and the US is now the cause of the current situation and must pay the price.” In addition, fund short covering is supporting crude prices as the November WTI crude futures contract expires today.
Markets are discounting a 15% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are mixed today. The Euro Stoxx 50 recovered from a 4.25-month low and is up +0.03%. China's Shanghai Composite closed up +0.12%. Japan's Nikkei-225 Stock Average slid to a 1-month low and closed down -1.30%.
Interest Rates
December 10-year T-notes (ZNZ6) are up +7 ticks today. The 10-year T-note yield is down -4.6 bp to 5.094%. T-notes are moving higher today on weak US housing news after Sep housing starts unexpectedly fell to a 4-month low and Se pending home sales fell more than expected. T-notes added to their gains today after WTI crude oil prices fell from a 5-month high and are down more than -1%, lowering inflation expectations.
European government bond yields are moving lower today. The 10-year German bund yield is down -7.2 bp to 3.384%. The 10-year UK gilt yield is down -5.2 bp to 5.380%.
The German Oct ZEW survey expectations of the economic growth index fell 6.6 bp to 28.1, below expectations of 30.0.
German Sep PPI rose +1.9% m/m and +6.7% y/y, stronger than expectations of +1.6% m/m and +6.3% y/y, with the +6.7% y/y gain being the largest annual increase in 3.5 years.
Markets are discounting a 6% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks recovered from early losses and are moving higher, supporting gains in the overall market. The iShares Semiconductor ETF (SOXX) recovered from a 2.5-month low and is up more than +1%. NXP Semiconductors (NXPI) and Microchip Technology (MCHP) are up more than +3%. Also, Seagate Technology Holdings Plc (STX), Texas Instruments (TXN), and Marvell Technology (MRVL) are up more than +2%. In addition, Analog Devices (ADI), Intel (INTC), Western Digital (WDC), Advanced Micro Devices (AMD), and Micron Technology (MU) are up more than +1%.
Airlines and cruise line operators are climbing today as WTO crude oil prices fall more than -1%. American Airlines Group (AAL) is up more than +6%, and Southwest Airlines (LUV), Carnival (CCL), Royal Caribbean Cruises (RCL), and Norwegian Cruise Line Holdings (NCLH) are up more than +4%. Also, United Airlines Holdings (UAL) and Delta Air Lines (DAL) are up more than +3%, and Alaska Air Group (ALK) is up more than +2%.
Software stocks are moving higher today. Adobe Systems (ADBE), Intuit (INTU), Oracle (ORCL), and Thomson Reuters (TRI) are up more than +3%. Also, ServiceNow (NOW) and Workday (WDAY) are up more than +2%, and Atlassian Corp (TEAM), Autodesk (ADSK), and IBM (IBM) are up more than +1%.
Pharmaceutical stocks are moving higher today. Untragenyx Pharmaceutical (RARE) is up more than +6%, and Eli Lilly (LLY) and Biogen (BIIB) are up more than +4%. Also, Merck & Co (MRK), Amgen (AMGN), Pfizer (PFE), and Jazz Pharmaceuticals Plc (JAZZ) are up more than +2%. In addition, Regeneron Pharmaceuticals (REGN), Vertex Pharmaceuticals (VRTX), and Gilead Sciences (GILD) are up more than +1%.
Equifax (EFX) is up more than +11% to lead gainers in the S&P 500 after reporting Q3 adjusted EPS of $2.26, better than the consensus of $2.20.
MSCI Inc (MSCI) is up more than +6% after reporting Q3 adjusted EPS of $5.11, stronger than the consensus of $5.03.
3M Co (MMM) is up more than +5% to lead gainers in the Dow Jones Industrials after reporting Q3 adjusted EPS of $2.50, above the consensus of $2.38, and raising its full-year adjusted EPS forecast to $9.10 to $9.15 from a previous forecast of $8.95.
General Motors (GM) is down more than -4% to lead losers in the S&P 500 after narrowing its 2026 adjusted earnings forecast to $14.5 billion to $15.5 billion from a July forecast of $14 billion to $16 billion.
Crown Holdings (CCK) is down more than -3% after forecasting Q4 adjusted EPS of $1.63 to $1.73, below the consensus of $1.80.
Steel Dynamics (STLD) is down more than -1% after reporting Q3 adjusted Ebitda of $1.19 billion, weaker than the consensus of $1.23 billion.
Earnings Reports (10/20/2026)
3M Co (MMM), Capital One Financial Corp (COF), Chubb Ltd (CB), Equifax Inc (EFX), General Electric Co (GE), General Motors Co (GM), Genuine Parts Co (GPC), Halliburton Co (HAL), Hasbro Inc (HAS), Intuitive Surgical Inc (ISRG), KeyCorp (KEY), MSCI Inc (MSCI), Netflix Inc (NFLX), Northrop Grumman Corp (NOC), RTX Corp (RTX), Synchrony Financial (SYF), United Airlines Holdings Inc (UAL).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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