US close: Stocks mixed as oil prices fall, rotation out of tech stocks continues

(Sharecast News) - Major indices delivered a mixed performance on Monday, as market participants continued to rotate out of tech stocks and increase exposure to other parts of the economy.

At the close, the Dow Jones Industrial Average was up 0.41% at 51,983.98, while the S&P 500 shed 0.51% to 7,541.40 and the Nasdaq Composite saw out the session 1.07% weaker at 25,164.32.

The Dow closed 213.67 points lower on Monday, extending losses recorded in the previous session after a dramatic tech sell-off weighed heavily on market sentiment.

Oil prices were in focus on Monday, with Brent crude falling 8.23% to $104.09 a barrel, while West Texas Intermediate dropped 7.78% to $96.02 a barrel, as oil prices unwound earlier gains amid renewed hopes of deescalation between Washington and Tehran.

Prices had initially pushed higher after comments from Secretary of State Marco Rubio, who said Donald Trump "hasn't made a decision" on military action against Iran and that the administration would prefer to resolve tensions "peacefully". Iranian state media also reported that its foreign minister said an agreement was possible if the US "demonstrates goodwill", helping ease fears of further disruption to global supply.

Traders also looked ahead to tomorrow's midterm elections, with polling indicating a sharp swing towards the Democrats as Donald Trump's approval rating hitting its lowest level for any sitting president heading into a midterm since Harry Truman.

Democrats have been projected to win by a wide margin and could potentially flip the Senate and secure a sizeable majority in Congress, which would materially strengthen oversight of Trumpera policies ranging from immigration enforcement and trade disputes to federal workforce cuts and the Iran conflict.

In the corporate space, Nvidia and Meta Platforms both traded lower, while Marvell Technology fell almost 13% after announcing that it was buying Lumentum in a $115bn and Oracle also headed south after the revealing that it would sell $10bn in common stock as well as $10bn in bonds to finance its AI buildout. On the other hand, so-called old economy stocks like as Sherwin-Williams and Home Depot traded higher, as did Honeywell, 3M and Boeing.

As far as earnings go, Estée Lauder posted a strongerthanexpected first quarter performance ahead of the open on Monday, with earnings per share coming in at $0.72, comfortably ahead of the $0.51 forecast by analysts. Revenues of $3.72bn also topped consensus estimates of $3.64bn, as the beauty group continued to benefit from improving demand across key markets.

Elsewhere, Loews delivered a thirdquarter earnings beat, despite lower yearonyear profits, with the firm reporting adjusted EPS of $1.50, down from $2.43 a year earlier, on $4.76bn of revenue, slightly higher than the $4.67bn posted twelve months ago. Net income attributable to Loews fell to $306m from $504m, with the decline driven by a $125m aftertax charge at CNA Financial linked to longterm care reserve updates, alongside higher catastrophe losses and softer property and casualty underwriting.

After the close, Apple posted better-than-expected quarterly revenues, but iPad sales fell short of estimates, while Palantir beat Wall Street estimates with its third quarter results, with US commercial revenues topping government for the first time.

On the macro front, US manufacturing expanded again in October, with both the S&P Global and Institute for Supply Management surveys pointing to continued growth across the sector, though with differing signals on momentum, inflation and business sentiment. The S&P Global US manufacturing PMI eased to 54.9 from September's 55.9, still marking a fifteenth straight month of expansion but indicating a slight softening in growth.

The ISM manufacturing PMI painted a firmer picture, rising to 55.5 from 54.5 and remaining comfortably above the 50 threshold. Four of the five key subindices strengthened, with new orders edging up to 55.5 and production jumping to 59.0. Employment growth slowed slightly to 52.4, while the prices index fell to 75.2, though still indicating elevated cost pressures.

On another note, construction spending slipped 1.9% month-on-month to a seasonally adjusted annualised rate of $2.186trn in September, marking the steepest drop since April 2020, following August's upwardly revised 2% advance and falling well and truly short of the 0.4% increase expected by economists. According to the Census Bureau, total private construction shrank by 2.4%, led by a 5.5% decline in residential activity, while non-residential spending rose by 1.1%.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Home Depot Inc. (HD) $341.15 3.63%

McDonald's Corp. (MCD) $265.64 2.91%

Visa Inc. (V) $425.51 2.88%

American Express Co. (AXP) $327.98 2.78%

3M Co. (MMM) $178.36 2.30%

Boeing Co. (BA) $175.40 2.24%

Walt Disney Co. (DIS) $113.11 1.93%

Coca-Cola Co. (KO) $95.83 1.86%

Procter & Gamble Co. (PG) $163.56 1.24%

Nike Inc. (NKE) $39.12 1.16%

Dow Jones - Fallers

Intel Corp. (INTC) $59.97 -8.95%

Cisco Systems Inc. (CSCO) $101.61 -4.69%

Chevron Corp. (CVX) $227.77 -3.32%

Microsoft Corp. (MSFT) $507.12 -2.45%

International Business Machines Corporation (CDI) (IBM) $252.51 -2.06%

Apple Inc. (AAPL) $338.32 -2.05%

Amgen Inc. (AMGN) $465.45 -1.65%

Unitedhealth Group Inc. (UNH) $400.44 -1.60%

Dow Chemical Co. (DOW) $34.18 -1.50%

Caterpillar Inc. (CAT) $613.62 -1.47%

S&P 500 - Risers

Idexx Laboratories Inc. (IDXX) $671.64 16.34%

LKQ Corporation (LKQ) $19.93 10.23%

Molson Coors Beverage Co. Class B (TAP) $43.23 7.75%

Capri Holdings Limited (CPRI) $20.05 7.33%

Alaska Air Group Inc. (ALK) $38.29 7.22%

Mohawk Inds Inc. (MHK) $148.58 6.58%

Pentair plc (PNR) $70.56 6.44%

Copart Inc. (CPRT) $31.93 6.26%

Advance Auto Parts (AAP) $47.92 6.23%

CBRE Group Inc (CBRE) $136.75 6.13%

S&P 500 - Fallers

Seagate Technology Plc (STX) $593.76 -10.94%

NetApp Inc. (NTAP) $185.26 -10.53%

Advanced Micro Devices Inc. (AMD) $466.84 -9.71%

Illumina Inc. (ILMN) $226.58 -9.65%

Helmerich & Payne Inc. (HP) $38.84 -9.65%

Akamai Technologies Inc. (AKAM) $86.69 -9.49%

Intel Corp. (INTC) $59.97 -8.95%

Western Digital Corp. (WDC) $338.59 -8.80%

Oracle Corp. (ORCL) $119.22 -8.77%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Nasdaq 100 - Risers

Idexx Laboratories Inc. (IDXX) $671.64 16.34%

Expedia Group Inc. (EXPE) $298.99 5.71%

Charter Communications Inc. (CHTR) $115.54 5.08%

Liberty Global plc Series A (LBTYA) $8.12 5.05%

Autodesk Inc. (ADSK) $257.91 5.03%

T-Mobile Us, Inc. (TMUS) $160.15 5.02%

Comcast Corp. (CMCSA) $23.87 4.97%

Wynn Resorts Ltd. (WYNN) $77.67 4.95%

Liberty Global plc Series C (LBTYK) $7.99 4.51%

Intuit Inc. (INTU) $352.10 4.47%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Seagate Technology Plc (STX) $593.76 -10.94%

Illumina Inc. (ILMN) $226.58 -9.65%

Intel Corp. (INTC) $59.97 -8.95%

Western Digital Corp. (WDC) $338.59 -8.80%

Check Point Software Technologies Ltd. (CHKP) $141.50 -7.69%

Applied Materials Inc. (AMAT) $374.53 -6.97%

Micron Technology Inc. (MU) $833.59 -6.91%

QUALCOMM Inc. (QCOM) $162.08 -6.08%

Lam Research Corp. (LRCX) $227.56 -6.07%