The S&P 500 and the Dow Jones Industrial Average ended Tuesday marginally lower, as investors grappled with persistent concerns about an uptick in interest rates and digested this week's latest earnings reports.

The S&P 500 ended the session lower by 0.05%, closing at 5,851.20. It was the broad market index's first back-to-back loss since early September. The 30-stock Dow slid 6.71 points, or 0.02%, ending at 42,924.89 and posting a second straight losing day. The Nasdaq Composite outperformed with a gain of 0.18% to 18,573.13.

The  U.S. 10-year Treasury note yield earlier climbed above 4.2% for the first time in about three months before slightly pulling back from that level. Cautious commentary from Federal Reserve officials on the path of interest rate cuts has pushed yields higher.

Yields have actually increased since the Fed cut by a half point a month ago. Part of that move can be attributed to improving economic data, but some of that increase is due to pessimism the Fed won't be as aggressive with rate cuts moving forward. Traders see a 91% chance of a quarter-point cut at the Fed's next meeting ending Nov. 7, according to the CME's FedWatch Tool based on fed funds futures trading.

Homebuilding stocks dropped on persistent higher-for-longer rate concerns, with Lennar and D.R. Horton each losing more than 3%.

"The market had moved into overbought territory, making it vulnerable to anything it perceives as negative … It's now worried that the Fed has not declared victory on inflation, and not to mention, the concerns post-election," said LPL Financial chief global strategist Quincy Krosby. 

Traders are also eyeing a fresh slate of earnings reports that are set to come out this week, including Tesla and Coca-Cola on Wednesday and Honeywell on Thursday.

On Tuesday, General Motors jumped nearly 10% after topping Wall Street's third-quarter expectations and raising its full-year guidance. Philip Morris also soared roughly 10% after the Marlboro maker raised its annual profit forecast, while Verizon shed 5% after its total revenue just missed analysts' forecast. Lockheed Martin shares dipped 6% after the military contractor posted lower-than-expected quarterly sales.

So far, roughly one-fifth of companies in the S&P 500 have reported results, with the majority topping earnings estimates, according to FactSet.

The market has been on a hot streak in October with the S&P 500 reaching a record and stretching its year-to-date gain to beyond 22%.

S&P 500, Dow end Tuesday marginally lower

The Dow Jones Industrial Average and the S&P 500 ended the trading session marginally lower.

The 30-stock Dow closed 6.71 points, or 0.02%, lower. The broad market index shed 0.05%, while the Nasdaq Composite rose 0.18%.

— Pia Singh

Politics can 'make or break' certain parts of the market, says Bank of America

The U.S. election is about two weeks away, and who winds up in the White House and in Congress could have an effect on key corners of the stock market, according to Bank of America.

"Profits accelerating are far more important than who is sitting in the Oval Office. But politics can make or break sub-sectors," the firm wrote in a Friday note. 

With this in mind and with volatility expected to rise as the Nov. 5 election nears, Bank of America strategists say it is now a stock picker's market. 

"Now is not the time to close one's eyes and buy the index," the investment bank said. 

To read more about Bank of America's assessment of the election on the stock market, click here.

— Hakyung Kim

Barclays names top food-service stocks this earnings season

As the third-quarter earnings season ramps up, Barclays offered clients its favorite stocks across the restaurant sector.

Here are the British bank's four best ideas, along with its ratings and target price estimates:

1. Quick service: McDonald's (overweight rating, raised price target by $25 to $325)
2. Specialty and fast casual: Starbucks (overweight rating, held price target at $100)
3. Food-service distribution: Performance Food Group (overweight rating, raised price target by $10 to $98)
4. Casual dining: Bloomin' Brands (overweight rating, cut price target by $2 to $20)

Broadly speaking, analyst Jeffrey Bernstein said investor sentiment in the space has been bullish recently, with sales holding up despite the slowdown to start the third quarter. Still, he said these companies should "offer conservatism" to end the year, given uncertainty tied to the presidential election.

— Alex Harring

Short interest in U.S. tech stocks is rising, S3 Partners says

Short interest in U.S. technology stocks is rising as a percentage of shares outstanding, indicating a reversal strategy is likely underway, as was true in European tech companies earlier this year, according to S3 Partners.

"The U.S. and European tech indices exhibited similar returns early in 2024, but the U.S. continued to rise, while Europe stalled," a note from S3, which specializes in monitoring short sales, said Tuesday. "Short interest in Europe has declined as prices fell, suggesting covering, while U.S. short positions rose during its market gains, indicating a reversal strategy."

S3 highlighted Broadcom, Salesforce, Adobe and Applied Materials as examples of tech stocks that are seeing upticks in short covering.

"The U.S. market is now witnessing increased shorting during its upward movement, which also indicates a reversal strategy," S3 researchers said." Consequently, both the European and U.S. [tech] markets are exhibiting reversal strategies."

— Scott Schnipper

Oil prices are reclaiming ground after last week's sell-off

Crude oil futures have gained about 4% this week, after China cut its benchmark lending rates and geopolitical tensions in the Middle East remain volatile.

U.S. crude oil gained $1.53 to settle at $72.09 per barrel Tuesday afternoon, while global benchmark Brent added $1.75 to close at $76.04 per barrel. The rally extended Monday's gains of more than 1%.

Though prices are rising this week, the supply-and-demand outlook looks bearish, even as Israel is still expected to retaliate against Iran for the Islamic Republic's Oct. 1 ballistic missile attack.

U.S. crude oil sold off more than 8% last week as traders view an oil disruption in the Middle East due to Iran-Israel tensions as increasingly unlikely. A weak demand picture also weighed on prices, with consumption in China softening as more OPEC supply is expected to come online in December.

— Spencer Kimball

Barclays sees the equity risk rally stalling in the near term

As stocks linger near their all-time highs, investors are left to wonder which direction the market could go from here.

In a note from Monday, Barclays recommended that investors proceed with caution, since the bank believes the recent market rally may soon run into some near-term headwinds.

"We have been overweight global risk assets for the last several weeks. But — while our macro outlook remains positive — we now recommend moving to the sidelines. We think investors are likely to as well; the risk rally should stall for the next few weeks," Barclays wrote.

— Lisa Kailai Han

Growth concerns push BTIG to neutral on Deckers

BTIG moved to the sidelines on Deckers as signs of moderating growth raised questions about the multiple, leading shares more than 3% lower on Tuesday.

Analyst Janine Stichter downgraded the shoemaker to neutral from buy. BTIG does not give price targets to neutral-rated names.

"We now see risk/reward as more balanced as our checks pick up," Stichter wrote to clients in a Tuesday note. According to the analyst, a slower start to the holiday season for the Ugg brand is one reason for pause. Any upside for Ugg products is more likely to come from wholesale than direct-to-consumer, which would likely go unrewarded by investors, she said.

Indications that growth is cooling in Hoka running shoes after what Stichter described as a "robust multi-year run" is another. That comes as competitors try to catch up to the brand, the analyst said.

Deckers shares are still up more than 38% in 2024, putting the stock on track for its ninth straight positive year.

— Alex Harring

Strategas: Most stock ETFs are trading well above 200-day moving average

The continued market rally has pushed most equity exchange-traded funds across a notable technical threshold, according to Strategas.

ETF strategist Todd Sohn said in a note to clients Tuesday that most equity-focused funds are trading at abnormally high levels relative to their recent history.

"Over 75% of equity ETFs are trading at least +1 standard deviation above their 200-day average," the note said.

The stat is not necessarily a sign that the stock market rally is out of steam. Sohn pointed out that the ETF universe appeared even more "overbought" in January 2013, fairly early on in a multiyear market rally. ETFs were again overbought in January 2018, ahead of a major drawdown for stocks later that year.

— Jesse Pound

General Motors heads for best day since November 2023

Shares of General Motors spiked more than 9%, putting the automobile stock on pace for its best day in nearly a year.

The gains came as the company topped Wall Street's third-quarter earnings estimates and boosted its full-year earnings guidance.

GM said it now expects full-year adjusted earnings before interest and taxes to range between $14 billion and $15 billion, or $10 and $10.50 a share. That is up from the $13 billion to $15 billion estimate, or between $9.50 and $10.50 a share.

— Samantha Subin, Mike Wayland

Solar stocks outperform Tuesday despite rising rates

Solar stocks were one of the bright spots for investors on Tuesday, with the Invesco Solar ETF (TAN) rising more than 1%.

Among the fund's largest holdings, First Solar was a standout, climbing 3%.

The move is a bit of a surprise given the fact that bond yields jumped again on Tuesday. Solar stocks have often been sensitive to interest rates in the past.

The move may prove to be a one-day blip. The fund is still down more than 13% in October.

— Jesse Pound

UBS Wealth Management upgrades U.S. equities, forecasts a 'no landing scenario'

U.S. equities could benefit from a combination of inflation remaining close to the Federal Reserve's target and economic growth remaining robust, according to UBS Global Wealth Management.

The firm upgrades its outlook on U.S. stocks to attractive from neutral in an October note, with UBS GWM Chief Investment Officer Mark Haefele noting optimism over a still strong labor market and gross domestic product growth.

"We think a 'no landing' scenario is positive for US and global equities. With the economy more resilient, the risk of the Fed keeping rates too high for too long has diminished," Haefele said. "Of course, there is a risk that inflation will reaccelerate, but with signs that the long-run trend growth rate may be higher than previously estimated, inflationary risks may also be lower than previously expected."

— Brian Evans

Philip Morris surges on earnings beat

Shares of Philip Morris popped more than 8.5% and are on track for their best day since March 13, 2020, following this earnings beat before the bell. The tobacco giant also raised its full-year guidance.

• Third-quarter adjusted earnings came in at $1.91 per share, above the $1.82 a share expected from analysts polled by FactSet. Revenue was $9.91 billion, topping the $9.68 billion consensus estimate.
• For the full year, Philip Morris now expects adjusted earnings per share between $6.45 and $6.51, versus its previous range of $6.33 to $6.45. Analysts were expecting guidance of $6.41 per share, according to FactSet.
• The company's smoke-free business is booming. Last quarter, net revenue jumped 18% organically and this quarter, net revenue jumped another 17% organically.

The results reflect "excellent momentum across all regions and categories, with a reacceleration in IQOS adjusted in-market sales growth, strong ZYN volumes, and resilient combustible performance," CEO Jacek Olczak said in a statement.

— Michelle Fox, Brandon Gomez

Genuine Parts, General Motors among the names making moves midday

Here are some stocks making big moves in midday trading:

• Genuine Parts — Shares fell about 20% on the back of the company's weaker-than-expected earnings for the third quarter. During the period, Genuine Parts earned $1.88 per share, excluding items, below the $2.42 per share that analysts polled by FactSet were expecting. It also slashed its full-year forecast. The stock was headed for its worst day on record.
• General Motors — The stock jumped more than 9% after the automaker posted better-than-expected third-quarter results and raised its full-year forecast. For the period, GM earned an adjusted $2.96 per share on $48.76 billion in revenue. Analysts had expected $2.43 in earnings per share on $44.59 billion in revenue, per LSEG. Shares were headed for their biggest one-day gain in nearly a year.
• Verizon Communications — The telecommunications giant dipped 4% after posting third-quarter revenue of $33.33 billion, which came below the $33.43 billion analysts polled by LSEG had expected. However, Verizon's earnings per share of $1.19 came in 1 cent above estimates of $1.18. The company also reaffirmed its full-year outlook.

Read here for the full list.

— Sean Conlon

IMF says global fight against inflation is ‘almost won’ but highlights increasing risks

The International Monetary Fund lowered its global headline inflation projection 3.5% on an annual basis by the end of 2025, from an average 5.8% in 2024.

"The global battle against inflation is almost won," the agency said in its World Economic Outlook released Tuesday.

However, "Despite the good news on inflation, downside risks are increasing and now dominate the outlook," said IMF chief economist Pierre-Olivier Gourinchas. Now that inflation is headed in the right direction, global policymakers face a new challenge stemming from the rate of growth in the world economy, the IMF warned.

The fund kept its global growth estimate at 3.2% for 2024 and 2025, which it called "stable yet underwhelming."

The full story can be found here.

— Hakyung Kim

Genuine Parts tanks after slashing outlook

Shares of Genuine Parts tumbled 18% and hit a 52-week low after the company cut its full-year earnings outlook. It now expects adjusted earnings of $8 to $8.20 per share, versus its earlier guidance of $9.30 to $9.50 a share. Analysts polled by FactSet were expecting guidance of $9.35 a share.

Genuine Parts also narrowed its anticipated revenue growth for the year to between 1% and 2% year over year, compared to its prior guidance of 1% to 3%.

The company, which distributes automotive and industrial replacement parts, also reported a third-quarter earnings miss. Adjusted earnings per share was $1.88, less than the $2.42 consensus estimate, per FactSet.

"Our results were below our expectations, primarily driven by continued weakness in market conditions in Europe and our Industrial business," President and CEO Will Stengel said in a statement.

— Michelle Fox

Richmond manufacturing still in contraction though improving

The manufacturing outlook in the Richmond area brightened slightly in October though was still mired in contraction, according to a Federal Reserve gauge released Tuesday.

The Richmond Fed's monthly manufacturing survey showed that 14% more companies reported contraction against expansion for the month. That was an improvement from the -21% in September and slightly better than the Dow Jones estimate for -15%.

— Jeff Cox

Stocks open lower

Stocks opened in the red on Tuesday.

Shortly after 9:30 a.m. ET, the S&P 500 and Nasdaq Composite slipped 0.5% and 0.6%, respectively. The Dow Jones Industrial Average was about 114 points lower, or 0.3%.

— Pia Singh

Gold hit another record high. Here's how the pros are viewing the rally

Gold, known to be a classic "safe haven" asset, has been on a tear this year due to rising geopolitical tensions and broader macroeconomic uncertainties.

• Spot gold prices have soared above $2,700 an ounce and rallied for the fifth day on Monday to hit another record high of more than $2,733 an ounce.
• Year to date, spot gold is up more than 30%.
• The precious metal rose again in early Tuesday trading, adding 0.5% to $2,732.58.

Against this backdrop, CNBC Pro talked to several investing pros about their outlook on gold. Many are bullish, expecting gold to reach $3,000 an ounce by 2025. But there is still some cautious sentiment behind the rally.

"Declining interest rates will be a nice tailwind for the gold market and increase prices over the next six to 12 months. But you could well see volatility in the short-term … driven partly by speculative investors," said John Reade, senior markets strategist at the World Gold Council trade association.

Read more about how the pros are viewing the gold rally here.

— Amala Balakrishner, Pia Singh

Stocks making the biggest moves before the bell: Cheesecake Factory, Sherwin-Williams and more

These are the stocks moving the most in premarket trading:

• Cheesecake Factory — Shares gained more than 3% after activist investor JCP Investment Management built a stake in the company and asked it to consider spinning off three of its brands into a separate company.
• Sherwin-Williams — The paint manufacturer dipped 6.5% after posting disappointing third-quarter results.
• 3M — Shares of the industrial company rallied 5% after 3M posted third-quarter earnings of $1.98 per share on revenue of $6.07 billion. Analysts had expected earnings per share of $1.90 on $6.06 billion in revenue, according to LSEG.

Read the full list of stocks moving here.

— Lisa Kailai Han

Sell Hertz shares, JPMorgan warns

There are several reasons to give up on Hertz, JPMorgan said.

Analyst Ryan Brinkman downgraded the car rental stock to underweight from neutral. Brinkman also removed his price target, which was formerly $5.

Brinkman said softer travel trends and the potential for a faster churn of vehicles contributed to his decision. On top of that, he noted the Florida-based company's financial leverage is high.

Additionally, he said the company could face litigation costs tied to its prior bankruptcy. That was not priced into the old valuation analysis, the analyst said.

Meanwhile, Brinkman said shares of Avis Budget, which he has an overweight rating on, are "attractively inexpensive."

Hertz shares added about 1% in Tuesday's premarket, regaining some ground after sliding more than 8% in the preceding session. The stock has plummeted more than 71% in 2024 alone, bringing shares below the $3 mark to conclude Monday's session

— Alex Harring

GM rises after earnings beat and 2024 guidance increase

General Motors shares were up nearly 3% after the automaker reported third-quarter results that beat analysts' expectations and raised its full-year outlook.

The company earned an adjusted $2.96 per share on revenue of $48.76 billion. Analysts polled by LSEG expected a profit of $2.43 per share on revenue of $44.59 billion.

GM also said it sees 2024 EBIT ranging between $14 billion and $15 billion. That is up from a previous guidance of $13 billion to $15 billion.

"The consumer has held up remarkably well for us," Chief Financial Officer Paul Jacobson said during a media briefing. "Nothing we see has changed from where we've been for the last several quarters."

— Fred Imbert, Michael Wayland

Loop Capital initiates AppLovin, sets Street-high price target

AppLovin has earned the affection of Loop Capital.

Rob Sanderson, managing director of the investment bank, initiated coverage of the application technology stock at a buy rating. Sanderson's $181 price target suggests 13.9% upside from Monday's close, meaning the stock can extend its monster run.

That also appears to be the highest price target for the stock on Wall Street, according to LSEG.

"AppLovin has become indispensable infrastructure for the mobile gaming industry and is proving itself as a big data and AI play for investors," Sanderson told clients in a Monday note, using an acronym for artificial intelligence. "For a sizable market cap with impressive growth the stock was relatively undiscovered and, in our view, largely misunderstood until breaking out recently."

Sanderson said the stock has several parallels to The Trade Desk, which is a top pick from Loop for 2024. But he acknowledged that AppLovin already has a larger software business, which is growing quicker and has a higher margin.

After a recent rally, Sanderson said investors should look for opportunities to buy on any price dips. Still, he said the stock's revaluation is both "warranted" and "sustainable."

AppLovin shares advanced about 1% before the bell Tuesday. The stock has soared close to 300% this year.

— Alex Harring

Tesla shares can drop more than 10%: Jefferies

Jefferies sees less downside ahead than previously expected for Tesla stock.

While analyst Philippe Houchois has a hold rating, he upped his price target on the electric vehicle maker by $30 to $195. Still, that implies the stock will tumble 10.9% over the next year from Monday's close.

Houchois' update comes as he expects higher metrics from revenue to free cash flow and earnings before interest and taxes between 2024 and 2026. He said attention is recentered back on the business after Tesla's robotaxi event "fell a bit flat."

"Without much indication of progress on either technology or business models, we are back to focusing on operations and lingering concerns about governance and funding," Houchois told clients in a Monday note.

Houchois also pointed to a "stabilization" in the autos category helping the company in the third quarter.

"Tesla remains a fascinating business in terms of innovation and drive," he said. "But, more than ever, [it] looks like an imbalanced VC portfolio solely funded by an auto business under pressure."

Tesla shares slid nearly 1% in Tuesday premarket trading. The stock has bucked the broader market's uptrend this year, falling around 12% in 2024.

— Alex Harring

Asia markets mostly fall after major U.S. indexes slip

Asia-Pacific markets mostly slipped on Tuesday, trailing a mixed session on Wall Street.

Investors saw a light day in terms of economic data out of Asian countries, but assessed Hyundai Motor India as it made its trading debut after a record initial public offering in India.

Shares were trading down 4.42% at 1,873 rupees from their IPO price of 1,960 rupees, according to BSE data. 

The automaker had offered 142.19 million shares at a price band of 1,865 Indian rupees, or $22.18, to 1,960 rupees. The IPO fetched 278.56 billion rupees, or $3.3 billion, with shares priced at the top end of the price band.

— Lim Hui Jie

Europe shares mixed in early trade

European stock markets were mixed in early trade, with the benchmark Stoxx 600 index, which fell 0.66% on Monday, down another 0.1% at 8:35 a.m. in London.

The U.K.'s FTSE 100 and France's CAC 40 were lower by 0.28% and 0.11%, respectively. Germany's DAX managed a 0.55% gain.

— Jenni Reid

These are the stocks on the move in overnight trading

Here are the companies making the biggest moves during overnight trading Monday:

• Nike — Shares added less than 1% after the sneaker giant and athletics apparel company renewed its uniform partnership with the NBA and WNBA.
• Zions Bancorporation — The regional bank stock rose 4% on stronger-than-expected third-quarter results.
• Nucor — The steel production company declined more than 2% despite posting adjusted earnings and revenue that topped expectations in the third quarter.

Read the full list here.

— Samantha Subin

Stock futures open little changed

Stock futures opened little changed Monday evening.

Futures tied to the Dow edged up 8 points, while S&P 500 futures and Nasdaq-100 futures hovered near the flatline

— Samantha Subin