Wall Street opens mixed: S&P 500 at 7701.56, Nasdaq 100 at 29429.84

US stocks opened mixed on Tuesday. The S&P 500 stood at 7701.56 at 10:00 New York time, up 0.14%, while the Nasdaq 100 stood at 29429.84, down 0.34%.

What happened

The S&P 500 gained 10.83 points from its previous close of 7690.73. The Nasdaq 100 lost 99.51 points from 29529.34. The two indexes therefore moved in opposite directions in the first half hour of trading on the New York Stock Exchange, whose regular session runs from 09:30 to 16:00 New York time.

The CBOE Volatility Index stood at 18.13 at 14:00 UTC, down 1.68% from 18.44. The index is a gauge of expected volatility in S&P 500 options. Its lower level came alongside a rise in the broader S&P 500 and a decline in the Nasdaq 100.

Housing data

Two high-impact US housing releases came out at 12:30 UTC, ahead of the open. Housing Starts for September were 1.22 million, against an estimate of 1.3 million. The previous reading was 1.29 million, so the figure is lower than the month before.

Building Permits for September were 1.4 million, against an estimate of 1.39 million. The previous reading was also 1.4 million, so permits were unchanged from the prior month.

Starts count homes on which construction has begun. Permits count authorizations to build, and they are often read as an early signal of future construction. The two September figures therefore point in different directions: starts fell from the prior month, while permits held steady.

Earnings before the bell

Several large companies reported results before the open. GE Aerospace reported EPS of 2.25 USD, against an estimate of 2.01 USD. Revenue was 14.12 billion USD, against an estimate of 12.88 billion USD.

General Motors reported EPS of 3.7 USD, against an estimate of 3.69 USD. Revenue was 50.02 billion USD, against an estimate of 48.78 billion USD. The company also announced a new 20 billion USD stock buyback program. In premarket trading its shares were down about 5%.

Equifax reported EPS of 2.26 USD, against an estimate of 2.2 USD. Revenue was 1.69 billion USD, against an estimate of 1.69 billion USD.

Genuine Parts reported EPS of 2.07 USD, against an estimate of 2.04 USD. Revenue was 6.52 billion USD, against an estimate of 6.49 billion USD.

RTX reported third-quarter adjusted earnings of 2.26 USD per share on revenue of 24.97 billion USD. The defense company's shares rose in premarket trading.

Background and previous values

The S&P 500 closed the previous session at 7690.73 and the Nasdaq 100 at 29529.34. The VIX ended the previous session at 18.44. Against those reference points, the morning moves are modest: a gain of 0.14% for the S&P 500, a decline of 0.34% for the Nasdaq 100 and a decline of 1.68% for the VIX.

On the housing side, the September starts figure of 1.22 million compares with 1.29 million in the previous reading. Building Permits stayed at 1.4 million in both readings. The estimates for the two series were 1.3 million and 1.39 million respectively.

On the earnings side, four companies reported results before the open. Equifax reported revenue of 1.69 billion USD, the same as its estimate of 1.69 billion USD. The other three, GE Aerospace, General Motors and Genuine Parts, reported revenue of 14.12 billion USD, 50.02 billion USD and 6.52 billion USD, against estimates of 12.88 billion USD, 48.78 billion USD and 6.49 billion USD.

Why it matters

Housing Starts and Building Permits measure the pace of new home construction in the United States. Starts at 1.22 million, down from 1.29 million, show a slower pace of new construction in September. Permits were unchanged at 1.4 million.

Earnings reports give a view of corporate activity in industrial and consumer sectors. The day's reports come from aerospace, defense, automotive, credit data and auto parts distribution. The reaction in General Motors shares shows that share moves depend on more than the headline results: the company reported EPS and revenue above the estimates of 3.69 USD and 48.78 billion USD, and its shares were still lower in premarket trading while it announced a buyback program of 20 billion USD.

The split between the S&P 500 and the Nasdaq 100 shows that the open was not uniform across the market. The lower reading of the volatility index, at 18.13 against 18.44 at the previous close, indicates that expected volatility in S&P 500 options was slightly lower than at the previous close.

The combination of results is also worth noting for its breadth. The companies that reported before the open span very different parts of the economy. GE Aerospace and RTX are tied to aviation and defense. General Motors and Genuine Parts are tied to vehicles and their parts. Equifax is a credit data company. Their results therefore describe several areas of corporate activity at once, rather than a single industry.

What to watch next

Further company results are due through the week. Market participants will follow how shares of companies that have reported trade through the rest of the session, which ends at 16:00 New York time.

The next releases on the US economic calendar will add data on housing and activity. The S&P 500 and the Nasdaq 100 will be compared with their previous closes of 7690.73 and 29529.34 as the session continues. The VIX, at 18.13 at 14:00 UTC, will show whether expected volatility in S&P 500 options moves further from the previous close of 18.44.

For the companies that reported, attention will stay on how their shares trade after the open. That includes General Motors, which announced a new 20 billion USD buyback program together with its quarterly results, and RTX, which reported adjusted earnings of 2.26 USD per share on revenue of 24.97 billion USD.