Wall Street Near Record as Earnings Season Opens/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stock indexes hovered near record highs Tuesday as companies began reporting third-quarter earnings. Strong results from GM, RTX, and Coca-Cola helped offset tech pullbacks and investor caution. With key economic data delayed due to the government shutdown, corporate earnings now play a crucial role in gauging economic health.
Wall Street Earnings Week Quick Looks
- S&P 500 dips 0.1%, just 0.4% below record highs; Dow rises 155 points.
- General Motors surges 14.3% after a strong earnings beat and EV strategy update.
- RTX, Danaher, and Coca-Cola rise after exceeding Wall Street profit expectations.
- Warner Bros. Discovery jumps 9.2% on news it may reconsider its spinoff plans.
- Google’s Alphabet drops 1.9%, cooling recent tech stock momentum.
- Gold retreats 4.4% from record high, still up 58% YTD.
- 10-year Treasury yield eases to 3.95% from 4.00%.
- Global markets climb on hopes of Trump–Xi summit easing trade tensions.
Deep Look: Wall Street Holds Steady Near Record Highs as Earnings Season Kicks Off
NEW YORK — October 21, 2025 — Wall Street hovered just below all-time highs Tuesday morning as the market entered one of its most anticipated earnings seasons in recent memory. With the S&P 500 down just 0.1%, the index now sits a mere 0.4% below its record peak set earlier this month.
The Dow Jones Industrial Average gained 155 points (0.3%), while the Nasdaq composite dipped 0.3%, dragged down by losses in major tech stocks.
Big Winners: GM, RTX, Danaher, Coca-Cola
Earnings took center stage as General Motors led the charge with a 14.3% surge, reporting stronger-than-expected quarterly profits and raising full-year guidance. CEO Mary Barra said the company is adjusting expectations for electric vehicle growth, acknowledging that EV adoption will be slower than previously forecast.
RTX, Danaher, and Coca-Cola also posted impressive gains — all climbing over 3% to 6.5% — after reporting quarterly results that beat Wall Street estimates.
Meanwhile, Warner Bros. Discovery jumped 9.2% after hinting it may pivot from its previous plan to spin off Discovery Global. The company noted multiple parties are interested in acquisitions or alternative restructuring that may deliver more value for shareholders.
“Strong earnings are a necessary ingredient for sustaining current market valuations,” said one analyst. “With limited economic data due to the shutdown, investors are watching corporate results more closely than ever.”
Losers: Tech Pullback, PulteGroup Misses Rally
Despite positive earnings from several sectors, some of the market’s largest players cooled off.
- Alphabet (Google) slipped 1.9% from its recent high.
- Nvidia fell 1.3%, halting its recent rally.
- PulteGroup, despite beating profit estimates, dropped 2.2%.
- Northrop Grumman slid 0.8% after missing revenue expectations.
Gold Pulls Back, Bond Yields Dip
After surging to an all-time high, gold prices dropped 4.4% to $4,167 per ounce. Still, gold remains one of the year’s top-performing assets, up nearly 58% year-to-date.
In the bond market, the 10-year Treasury yield fell slightly to 3.95% from 4.00%, signaling some investor caution and anticipation of upcoming inflation data.
Shutdown Delays Data, Elevates Earnings’ Role
With the U.S. government still in shutdown, key economic indicators have been delayed, placing even more emphasis on corporate earnings to signal the economy’s direction.
Investors and policymakers are also awaiting the consumer price index (CPI) report, due Friday from the Commerce Department — the first major government data release since the shutdown began on October 1.
“This earnings season carries more weight than usual,” said a market strategist. “Without government reports, the Fed and investors are flying partially blind.”
The Federal Reserve is still weighing how to respond to stubborn inflation and signs of a cooling labor market — two competing forces in shaping future interest rate policy.
Global Markets Rise on Political Optimism
Markets overseas were largely positive, lifted by political developments and easing concerns in Asia:
- Japan’s Nikkei 225 gained 0.3%, buoyed by expectations that new Prime Minister Sanae Takaichi will implement pro-business, low-interest rate policies.
- Shanghai jumped 1.4% and Hong Kong rose 0.7% as reports emerged that President Trump will meet Chinese President Xi Jinping later this month. Optimism about improving U.S.–China trade relations helped lift sentiment.
“Markets are watching for signs that tensions between the world’s two largest economies may thaw,” said a global economist.
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