Dow Jumps 400 Points; Yum! Brands Posts Downbeat Earnings

U.S. stocks traded higher toward the end of trading, with the S&P 500 gaining around 1% on Tuesday.

The Dow traded up 0.96% to 42,197.88 while the NASDAQ rose 1.26% to 18,408.47. The S&P 500 also rose, gaining, 1.03% to 5,771.80.

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Leading and Lagging Sectors

Consumer discretionary shares surged by 1.8% on Tuesday.

In trading on Tuesday, energy shares rose by just 0.3%.

Top Headline

Yum! Brands, Inc. YUM posted downbeat results for its third quarter

The company reported third-quarter adjusted earnings per share of $1.37 missing the street view of $1.41. Yum! Brands reported a 4% increase in same-store sales for Taco Bell in the U.S., and a 9% unit growth for KFC International. The company's quarterly revenues of $1.826 billion missed the analyst consensus of $1.899 billion.

Equities Trading UP
                       

• Bionomics Limited BNOX shares shot up 170% to $0.5189 after the company announced it secured an AUS$1 million milestone payment from Carina Biotech for its BNC101 oncology program, with the potential to earn up to AUS$118 million.
• Shares of Vimeo Inc VMEO got a boost, surging 44% to $6.91 after the company reported better-than-expected third-quarter financial results and issued fourth-quarter sales guidance above estimates.
• ZyVersa Therapeutics, Inc. ZVSA shares were also up, gaining 33% to $2.43 after the company highlighted data showing the potential of inflammasome inhibition to protect pancreatic islet beta cells and attenuate progression from obesity to insulin resistance and type 2 diabetes.

Equities Trading DOWN

• Marqeta, Inc. MQ shares dropped 40% to $3.55 after the company reported worse-than-expected Q3 sales results. Also, multiple firms downgraded their respective ratings on the company and lowered their respective price targets.
• Shares of Verrica Pharmaceuticals Inc. VRCA were down 41% to $0.8499 following downbeat quarterly results.
• Bioventus Inc. BVS was down, falling 18% to $11.19 after the company announced third-quarter results.

Commodities

In commodity news, oil traded up 0.3% to $71.70 while gold traded up 0.2% at $2,750.20.

Silver traded up 0.4% to $32.725 on Tuesday, while copper rose 0.7% to $4.4645.

Euro zone

European shares closed mostly higher today. The eurozone's STOXX 600 rose 0.06%, Germany's DAX gained 0.57% and France's CAC 40 rose 0.48%. Spain's IBEX 35 Index rose 0.29%, while London's FTSE 100 fell 0.14%.

Spain's consumer confidence indicator declined by 4.6 points to a reading of 84.8 in September.

Asia Pacific Markets

Asian markets closed higher on Tuesday, with Japan's Nikkei 225 gaining 1.11%, Hong Kong's Hang Seng Index gaining 2.14%, China's Shanghai Composite Index gaining 2.32% and India's BSE Sensex gaining 0.88%.

Economics

• The trade deficit in the U.S. increased to $84.4 billion in September, recording the highest level since April 2022, and above market estimates of a $84.1 billion gap, versus a revised $70.8 billion gap in August.
• The ISM services PMI rose to 56 in October, recording the highest reading since Aug. 2022.
• The S&P Global composite PMI rose to 54.1 in October compared to 54.0 in September.

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