Stock Market at Record Highs: Stunning Earnings Wave as Dow, S&P 500 and Nasdaq Smash Records

Stock market at record highs capped a volatile week, with the Dow Jones, S&P 500 and Nasdaq hitting fresh peaks Friday morning after a cooler CPI print reinforced hopes for a Federal Reserve rate cut. Earlier weakness in gold, AI and speculative names faded as buyers returned, while a busy earnings slate delivered standout beats across autos, energy services, defense and healthcare.

Investors weighed softer inflation against a packed corporate calendar, shrugging off midweek turbulence. The 10-year Treasury yield slipped below 4% during the week, oil rose on new sanctions headlines and a broad cross-section of companies topped expectations. Netflix disappointed, Tesla whipsawed on guidance, but General Motors, TechnipFMC, Las Vegas Sands, Carpenter Technology and Comfort Systems rallied on results.

Stock market at record highs after cooler CPI and upbeat earnings

A lighter consumer price index set the tone. September CPI rose 0.3% month over month, below the 0.4% forecast and down from August’s 0.4%. On a 12-month basis, headline inflation ticked up to 3% from 2.9% but undershot 3.1% expectations. Core CPI increased 0.2% on the month and cooled to 3% year over year from 3.1%.

Traders read the report as a green light for the Fed to continue easing this fall, with rate futures pointing to a likely October 29 move and elevated odds for another reduction in December, contingent on incoming data. Against that backdrop, the stock market at record highs reflected a favorable mix: progress on inflation, firm earnings and contained bond yields.

• Major indexes: Dow, S&P 500 and Nasdaq set records Friday morning and logged strong weekly gains.
• Small caps: The Russell 2000 advanced, helping breadth improve into the weekend.
• Commodities and rates: Crude oil jumped after new sanctions on Russian energy giants and plans to add to strategic reserves. The 10-year yield finished the week under 4%.

Earnings highlights: autos, energy, travel, chips and more

Solid results across sectors helped keep the stock market at record highs despite intraday swings. Here are the week’s key movers.

Autos: Tesla swings, GM surges, Ford steadies

• Tesla (TSLA): Q3 EPS fell 31% from a year earlier, missing estimates, though revenue rose 12% to $28.10 billion, aided by the now-expired U.S. EV tax credit. On the call, CEO Elon Musk said he expects unsupervised robotaxis in Austin by year-end and outlined a challenging path to humanoid robot production by late 2026. Shares fell initially but finished off session lows.
• General Motors (GM): Topped Q3 earnings and revenue, raised guidance and trimmed its expected 2025 tariff impact. EPS fell 5% to $2.80, revenue dipped less than 1% to $48.59 billion. GM said Google’s Gemini AI will begin rolling out in vehicles next year. Shares vaulted to a record high.
• Ford (F): Beat Q3 views with EPS down 8% and sales up 9% to $50.5 billion. Management cut full-year guidance due to aluminum shortages tied to a Novelis fire, a known headwind. Shares rose.

Energy and services: subsea strength, refining snapback

• TechnipFMC (FTI): Q3 earnings rose 17% with sales up 13% to $2.65 billion, topping estimates. Shares jumped.
• Halliburton (HAL): Beat expectations despite a 20.5% EPS drop; stock gained on the day.
• Weatherford International (WFRD): Missed on EPS with a 46% decline but exceeded revenue forecasts; shares rallied on the print.
• Oceaneering International (OII): Q3 earnings up 53% and sales up 9% beat consensus; stock reversed lower later in the week.
• Baker Hughes (BKR): Delivered slight EPS and sales beats; shares rose strongly for the week.
• Valero Energy (VLO): Q3 profit shot up 221%, ending seven quarters of year-over-year declines, while revenue slipped about 2%. Shares surged from the 50-day moving average within a base.

Industrials and defense: demand remains “unprecedented”

• GE Aerospace (GE): EPS jumped 44% and revenue climbed 26%, both beating estimates on robust commercial and defense demand. CFO Rahul Ghai said the environment “feels better” than three months ago and air traffic growth has “stabilized.” Guidance was raised; shares hit new highs and finished the week modestly higher.
• GE Vernova (GEV): Posted a strong Q3 with EPS at $2.17 vs. a loss a year ago and sales up nearly 12% to $9.97 billion. Stuck to 2025 guidance and set a Dec. 9 investor event to outline 2026 and an updated multiyear view. Shares were volatile, ending slightly lower for the week.
• Defense contractors: RTX (RTX) and Lockheed Martin (LMT) delivered beat-and-raise reports, citing “unprecedented” demand for jets, missiles and engines. Lockheed lifted its earnings outlook and narrowed sales guidance to the upper end. RTX also raised guidance; shares jumped to record highs. Northrop Grumman (NOC) beat EPS but missed sales, raised earnings outlook but trimmed revenue guidance; shares fell back below a recent buy point. General Dynamics (GD) topped estimates and extended gains toward record territory. L3Harris (LHX) climbed into a buy zone after winning a portion of a $2.6 billion jet modification contract with the Republic of Korea; earnings are due Oct. 30.

Media and telecom: a mixed picture

• Netflix (NFLX): Reported mixed Q3 results and a modest Q4 guide. EPS rose 9% to $5.87 versus higher expectations; revenue increased 17% to $11.51 billion. Management cited costs tied to a Brazilian tax dispute for the earnings shortfall. Shares slid.
• AT&T (T): Met EPS and posted a near-2% revenue gain to $30.7 billion, slightly below views. Wireless postpaid phone additions beat expectations, but the stock fell to its worst level in over eight months.
• T-Mobile US (TMUS): EPS declined 7% while revenue rose 4% to $21.95 billion, both topping estimates. The carrier added over 1 million postpaid phone subscribers and 506,000 home internet customers, with capex up 35%. Shares also retreated to multi-month lows.

Chips and AI: beats and bruises

• Intel (INTC): Surprised with adjusted EPS of $0.23 vs. $0.02 expected; revenue up 3% to $13.65 billion. Shares advanced.
• Lam Research (LRCX): EPS surged 47% to $1.24, revenue rose 28% to $5.32 billion; shares moved higher.
• STMicroelectronics (STM) and Texas Instruments (TXN): Both fell on disappointing results and cautious Q4 guides.

Software and services: IBM’s AI engine grows

IBM (IBM): EPS rose 15% with revenue up 9% to $16.3 billion, beating expectations. CEO Arvind Krishna said IBM’s AI book of business reached more than $9.5 billion, versus $3 billion a year ago. Red Hat growth decelerated to 14%. Shares recovered from an early drop to finish slightly higher for the week.

Healthcare and medtech: procedures and pipelines shine

• Boston Scientific (BSX): Beat with strong growth in Watchman and electrophysiology. Watchman sales rose 35%; electrophysiology surged 63%. Total organic sales climbed 15.3%. Shares gained.
• Danaher (DHR): Delivered a beat on the back of bioprocessing strength. Revenue rose 4% to $6.05 billion; adjusted EPS up 10.5% to $1.89. Shares advanced.
• Intuitive Surgical (ISRG): Procedures increased 20% for da Vinci and Ion systems; total sales up 23%, earnings up more than 30%. The newest da Vinci accounted for over half of placements. Shares climbed.
• Hologic (HOLX): Jumped after a private equity buyout agreement valued at $18.3 billion, or $76 per share, according to reports.

Banks, exchanges and credit: uneven but resilient

• Capital One Financial (COF): EPS rose 32% and revenue jumped 53% to $15.4 billion, bolstered by the Discover acquisition. Shares rallied, reclaiming the 50-day and triggering an early entry.
• Nasdaq (NDAQ): EPS rose 19%, revenue up 15% to $1.3 billion; shares faded to a small weekly loss after an initial pop.
• CME Group (CME): EPS was flat while revenue fell 3% to $1.5 billion as clearing and transaction fees declined 5% to $1.23 billion. Stock edged higher for the week.

Materials and metals: tariffs, tight supply and price spikes

• Steel Dynamics (STLD): Logged its first quarter of growth in over two years and flagged improving demand under tariff tailwinds, though noted customer “hesitancy.” Shares hit new highs.
• Cleveland-Cliffs (CLF): Reported a loss but touted new auto supply agreements and a “highly accretive” potential deal with a major foreign steelmaker, as well as a possible rare earth deposit. Shares spiked before reversing to slightly lower.
• Freeport-McMoRan (FCX), Teck Resources (TECK): Topped estimates amid tight copper supply driven by mine disruptions; neither offered fresh updates on outages. Teck’s acquisition by Anglo American (NGLOY) remains in focus.
• Alcoa (AA): Spiked after earnings as aluminum prices jumped on tighter supply and tariff headlines, though the company faces higher tariff costs on Canadian imports.
• Newmont (NEM): Beat with a 111% EPS jump thanks to stronger gold prices and cost control, though output was at the low end; shares fell.

Travel and services: mixed signals

• Las Vegas Sands (LVS): EPS rose 77% and revenue climbed 24%, both accelerating for a second straight quarter. “We remain enthusiastic about our growth opportunities in both Macao and Singapore,” CEO Robert Goldstein said. Shares gapped higher.
• United Rentals (URI): Beat revenue with a 6% rise, but EPS dipped 1% versus expectations for growth as higher capex and transportation costs pressured margins. Shares fell through the 50-day.
• American Airlines (AAL), Southwest (LUV), Alaska Air (ALK): AAL reported a smaller-than-expected loss and guided Q4 EPS above views; shares moved up within a base. LUV delivered a surprise profit as demand improved, but shares tumbled. ALK missed and hit a multi-month low.

Why the CPI matters: inflation progress and the Fed’s next step

The CPI report helped put the stock market at record highs by reinforcing the view that inflation is easing without derailing growth. The monthly core reading at 0.2% and the annual cooldown to 3% signal gradual progress toward the Fed’s 2% target. Investors now see next week’s meeting as a potential pivot point for policy.

Key takeaways:

• Headline CPI: +0.3% month over month; 3% year over year, below 3.1% consensus.
• Core CPI: +0.2% month over month; 3% year over year vs. 3.1% previously.
• Rates outlook: Futures indicate a high probability of an Oct. 29 cut, with attention on December odds. The Fed remains data-dependent.

Lower long-term yields support equity valuations, especially in growth and quality franchises, while a softer dollar can bolster global earnings translations. Still, the Fed will likely emphasize flexibility given uneven data and geopolitical crosscurrents.

Macro drivers: oil, gold and the dollar in the spotlight

Energy markets swung on policy headlines. Crude rallied after new sanctions targeting Russian energy giants and an announced plan to buy oil for strategic reserves. Gold suffered its worst one-day loss earlier in the week but steadied as yields pulled back. Currency markets were mixed, with moves muted as investors focused on the inflation path and the Fed’s trajectory.

These macro drivers helped shape the stock market at record highs by easing financial conditions and supporting cyclical sectors tied to capex and travel.

Reactions and what pros are watching

Market strategists credited the combination of cooler inflation and constructive earnings for the week’s surge. Portfolio managers highlighted improving breadth and strong reaction to upside reports in industrials, defense and healthcare. The next catalysts are clear:

• Fed meeting and press conference next week.
• Mega-cap tech earnings from Apple, Amazon, Alphabet, Meta and Microsoft.
• Follow-through in cyclicals if rates stay contained and oil stabilizes.
• Whether AI leaders can maintain guidance despite spending scrutiny.

As one industry executive noted, “The environment feels better than it did a quarter ago,” citing stabilizing demand and visible order books.

What’s next: catalysts that could extend the run

The stock market at record highs heads into a pivotal stretch. Here’s what could keep the tape constructive:

• A measured Fed message that balances easing with vigilance.
• Solid mega-cap tech results with disciplined spending and steady cloud/AI demand.
• Continued improvement in market breadth with small caps and cyclicals participating.
• Clarity on tariff impacts and supply chains in autos, metals and industrials.

Risks include upside surprises in inflation, softer consumer trends, renewed volatility in commodities or geopolitical frictions that tighten financial conditions.

Conclusion: momentum with a margin of safety

A cooler CPI print, firm earnings and supportive yields drove the stock market at record highs to close the week. While pockets of weakness surfaced—most notably in select tech, media and telecom—leadership broadened as industrials, defense, energy services and healthcare delivered. With the Fed decision and mega-cap earnings on deck, investors will be looking for confirmation that disinflation and profit growth can coexist.

If those pillars hold, the stock market at record highs could find a higher floor. If they wobble, expect a quick test of support as 2024’s leaders balance durable demand against tighter budgets and shifting rate expectations. For now, the setup favors discipline: focus on quality balance sheets, clear earnings visibility and sectors benefiting from easing rates and resilient demand.

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Article Source: Investors
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