US stocks traded mostly higher on Tuesday, with the technology-heavy Nasdaq Composite leading the way, gaining more than 100 points. This positive sentiment was fueled by strong third-quarter earnings from pharmaceutical giant Pfizer Inc. (PFE).
The Dow Jones Industrial Average closed down a slight 0.07% to 42,357.35, while the Nasdaq surged 0.74% to 18,704.19. The S&P 500 also rose, gaining 0.34% to 5,843.35.
Pfizer’s Strong Q3 Earnings Boost Investor Sentiment
Pfizer exceeded analysts’ expectations, reporting adjusted earnings per share of $1.06, a significant turnaround from a loss of 17 cents a year ago. This outperformance came on the back of strong revenue growth, with sales hitting $17.70 billion, up 31% year-over-year.
Mixed Earnings Reports Across Sectors
While Pfizer’s results boosted investor morale, other companies reported mixed results.
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GlycoMimetics, Inc. (GLYC)
shares soared 161% after announcing a merger with Crescent Biopharma and securing $200 million in funding to advance its oncology pipeline.*
BIO-key International, Inc. (BKYI)
shares jumped 95% following a $910,000 order from a long-time financial services customer to upgrade its biometric customer identification technology.*
GeneDx Holdings Corp. (WGS)
shares also saw a gain, rising 47% after the company reported better-than-expected third-quarter financial results and increased its FY24 revenue guidance.On the other hand, some companies saw their shares decline.
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1847 Holdings LLC (EFSH)
shares plunged 66% after the company priced an $11.1 million public offering at $1.26 per unit.*
TransMedics Group, Inc. (TMDX)
shares fell 30% due to worse-than-expected third-quarter results and a FY24 revenue guidance that fell short of estimates.*
Janus International Group, Inc. (JBI)
saw its shares decline 28% after reporting worse-than-expected third-quarter results and reducing its FY24 sales guidance.Sector Performance: Communication Services Up, Utilities Down
Communication services shares enjoyed a strong day, rising 1.2%, while utilities shares struggled, falling 1.6%.
Global Market Overview
European shares were lower on Tuesday, with the eurozone’s STOXX 600 slipping 0.37%. Germany’s DAX fell 0.18%, France’s CAC 40 dipped 0.29%, and Spain’s IBEX 35 Index dropped 0.74%. London’s FTSE 100 also fell 0.52%.
Meanwhile, Asian markets closed mixed. Japan’s Nikkei 225 gained 0.77%, Hong Kong’s Hang Seng Index rose 0.49%, while China’s Shanghai Composite Index fell 1.08% and India’s BSE Sensex surged 0.45%.
Economic Data
The US economy saw some mixed economic data released on Tuesday. The number of job openings declined by 418,000 to 7.443 million in September, indicating a slight cooling in the labor market. The FHFA house price index rose 0.3% in August, suggesting continued strength in the housing market.
The US trade deficit increased to $108.2 billion in September, reflecting a widening gap between exports and imports.
Commodities
In commodity markets, oil prices traded up 0.2% to $67.51, while gold prices rose 1% to $2,782.00. Silver gained 1.9% to $34.630, and copper rose 0.1% to $4.3650.
Overall, the US stock market closed on a positive note, driven by Pfizer’s strong earnings. However, the broader market remains sensitive to ongoing economic uncertainties and interest rate hikes.
