The S&P 500 Index ($SPX) (SPY) on Tuesday closed down by -0.09%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down by -0.38%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up by +0.16%. December E-mini S&P futures (ESZ25) fell -0.12%, and December E-mini Nasdaq futures (NQZ25) rose +0.10%.
Stock indexes gave up early gains and settled mixed on Tuesday as bond yields climbed after the Oct JOLTS report showed job openings unexpectedly rose to a 5-month high. The market remains cautious about the pace of Fed easing beyond Wednesday’s decision, when the Fed is expected to cut interest rates by 25 bp. The 10-year T-note yield rose +2 bp to 4.18%.
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US Oct JOLTS job openings unexpectedly rose by +12,000 to a 5-month high of 7.670 million, showing a stronger labor market than expectations of a decline to 7.117 million.
US Sep leading indicators fell -0.3% m/m, right on expectations.
The markets this week will focus on government reports and the FOMC meeting. On Wednesday, the Q3 employment cost index is expected to climb by +0.9%. The results of the Tue/Wed FOMC meeting are expected to show a -25 bp cut in the federal funds target range to 3.50%-3.75%. The markets will also look at the Fed’s summary of economic projections and its dot-plot interest rate forecast. In addition, post-meeting comments from Fed Chair Powell on Wednesday about the future direction of interest rates could move the markets. On Thursday, weekly initial unemployment claims are expected to increase by +29,000 to 220,000.
The markets are discounting a 90% chance of another -25 bp rate cut at the conclusion of the 2-day FOMC meeting on Wednesday.
Q3 corporate earnings season is drawing to a close as 495 of the 500 S&P companies have released results. According to Bloomberg Intelligence, 83% of reporting S&P 500 companies exceeded forecasts, on course for the best quarter since 2021. Q3 earnings rose +14.6%, more than doubling expectations of +7.2% y/y.
Overseas stock markets settled mixed on Tuesday. The Euro Stoxx 50 fell from a 3.5-week high and closed down -0.13%. China’s Shanghai Composite closed down -0.37%. Japan’s Nikkei Stock 225 closed up +0.14%.
Interest Rates
March 10-year T-notes (ZNH6) on Tuesday closed down -5 ticks. The 10-year T-note yield rose +1.8 bp to 4.182%. Mar T-note futures gave up an early advance and turned lower on Tuesday after the Oct JOLTS report showed job openings unexpectedly rose to a 5-month high, a hawkish factor for Fed policy. Also, supply pressures weighed on T-notes as the Treasury auctioned $39 billion of 10-year T-notes. However, losses in T-notes were limited due to solid demand for the $39 billion 10-year T-note auction, which had a bid-to-cover ratio of 2.55, above the 10-auction average of 2.54.
European government bond yields finished lower on Tuesday. The 10-year German bund yield fell from an 8.5-month high of 2.879% and finished down by -1.2 bp to 2.850%. The 10-year UK gilt yield fell by -2.3 bp to 4.505%.
German trade news was weaker than expected after German Oct exports rose +0.1% m/m, slightly weaker than expectations of +0.2% m/m. Also, Oct imports fell -1.2% m/m, weaker than expectations of -0.5% m/m.
Swaps are discounting a 1% chance for a -25 bp rate cut by the ECB at its next policy meeting on December 18.
US Stock Movers
Toll Brothers (TOL) closed down more than -2% to lead homebuilders lower after forecasting 2026 deliveries of 10,300 to 10,700, below the consensus of 10,843. Also, Lennar (LEN) closed down more than -2%, and D R Horton (DHI) and PulteGroup (PHM) closed down more than -1%.
Cryptocurrency-exposed stocks moved higher on Tuesday as Bitcoin (^BTCUSD) rose more than +1%. Galaxy Digital Holdings (GLXY) closed up more than +12% after Citizens Jmp Securities LLC initiated coverage of the stock with an outperform recommendation and a $60 price target. Also, Riot Platforms (RIOT) closed up more than +3%. In addition, Strategy (MSTR) closed up more than +2%, and MARA Holdings (MARA) and Coinbase Global (COIN) closed up more than +1%.
Silver mining stocks rose sharply on Tuesday after the price of COMEX silver soared to a new all-time high. Hecla Mining (HL) closed up more than +7% and Newmont (NEM) closed up more than +5% to lead gainers in the S&P 500. Also, Coeur Mining (CDE) closed up more than +5%.
SLM Corp (SLM) closed down more than -14% after Compass Point Research & Trading LLC double-downgraded the stock to sell from buy with a price target of $23.
Graphic Packaging Holding (GPK) closed down more than -8% after forecasting full-year net sales of $8.4 billion to $8.6 billion, the midpoint below the consensus of $8.56 billion.
AutoZone (AZO) closed down more than -7% to lead losers in the S&P 500 after reporting Q1 comparable sales rose +5.50%, weaker than the consensus of +5.93%. O’Reilly Automotive (ORLY) closed down more than -3% on the news to lead losers in the Nasdaq 100.
Caleres (CAL) closed down more than -5% after reporting Q3 adjusted EPS of 38 cents, well below the consensus of 85 cents.
JPMorgan Chase (JPM) closed down more than -4% to lead losers in the Dow Jones Industrials after CEO Lake said the bank anticipates spending $105 billion next year, higher than the consensus of $101.1 billion, driven by “volume- and growth-related expenses.”
Ollie’s Bargain Outlet Holdings (OLLI) closed down more than -3% after reporting Q3 comparable sales rose +3.30%, weaker than the consensus of +3.74%.
Ares Management (ARES) closed up more than +7% after S&P Dow Jones Indices said the company will replace Kellanova in the S&P 500 before trading begins on Thursday, December 11.
KeyCorp (KEY) closed up more than +3% after CEO Gorman said the bank agreed with activist investor HoldCo Asset Management that the stock is undervalued and has excess capital.
CVS Health (CVS) closed up more than +2% after raising guidance on its full-year adjusted EPS forecast to $6.60-$6.70 from a previous forecast of $6.55-$6.65, the midpoint stronger than the consensus of $6.63.
Core & Main Inc (CNM) closed up more than +2% after reporting Q3 net sales of $2.06 billion, better than the consensus of $2.05 billion.
Exxon Mobil (XOM) closed up more than +2% after it said it expects $35 billion in cash flow growth by 2030, an increase of about 17% from what it was projecting a year ago.
Viking Holdings Ltd (VIK) closed up more than +1% after Goldman Sachs upgraded the stock to buy from neutral with a price target of $78.
Otis Worldwide (OTIS) closed up more than +1% after BNP Paribas Exane upgraded the stock to outperform from neutral with a price target of $105.
Earnings Reports(12/10/2025)
Adobe Inc (ADBE), Chewy Inc (CHWY), Nordson Corp (NDSN), Oracle Corp (ORCL), Synopsys Inc (SNPS), Vail Resorts Inc (MTN).
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