Stock Market Today: Dow ends higher, but can't escape 3rd monthly loss; Fed eyed

Investing.com -- The Dow closed higher Tuesday on the final day of trade for October, as investors digested a raft of corporate earnings, but stocks couldn't avoid racking up a third-straight loss for the first time since March 2020. 

The Dow Jones Industrial Average gained 0.4% or 123 points, and the  S&P 500 rose 0.6%, and the Nasdaq gained 0.5%.

Caterpillar, JetBlue disappoint on earnings stage

Caterpillar (NYSE:CAT) fell nearly 7% after the industrial equipment maker’s order backlog narrowed, stoking worries about slowing equipment demand and offsetting Q3 results that topped on both the top and bottom lines.

JetBlue Airways Corp (NASDAQ:JBLU) was also punished for weaker-than-expected quarterly results and the airline cut its annual guidance, citing a “challenging operation backdrop.” Its shares fell about 10%.

Wolfspeed rally support rise in chip stocks; AMD eyed

Wolfspeed Inc (NYSE:WOLF) rallied 22% to lift the broader chip sector after delivering better-than-feared quarterly results. But some on Wall Street remain cautious on the stock awaiting further visibility on performance of its Mohawk Valley chip-making factory, which was opened last year.

“While we view WOLF's progress as substantial, we remain on the sidelines pending further derisking of Mohawk Valley,” Oppenheimer said in a note.

The uptick in chip stocks comes just hours ahead of the quarterly results from Advanced Micro Devices Inc (NASDAQ:AMD) due after the market closes.

“AMD's CQ3 estimates should be achievable, particularly assuming some benefit from improving consumer PC shipments,” Wedbush said in a recent note.

Consumer confidence falls for third-month in a row; Fed decision in focus

Consumer confidence in October fell for the third-straight month, although the decline was less than economists had expected as inflation concerns continue to grow.

“Write-in responses showed that consumers continued to be preoccupied with rising prices in general, and for grocery and gasoline prices in particular,” Dana Peterson, Chief Economist at The Conference Board said on Tuesday.

The news come just hours ahead of the Fed’s two-day meeting, which is expected to culminate in an unchanged decision on interest rates.

Treasury yields higher ahead of refinancing announcement

Treasury yields added to gains from a day earlier as investors looked ahead to the Treasury refunding announcement due Wednesday after the department on Monday cut its quarterly borrowing estimate for Q4 to $776 trillion from $852 trillion previously. 

The Treasury's funding plans have garnered added attention recently following a surge in Treasury yields, which some have attributed increased Treasury supply.