Hot news – The Dow closed lower, but clawed back most of its big intraday losses as bargain-seeking investors swooped in on a handful of beaten-down companies offsetting weakness in industrials.
The Dow Jones Industrial Average fell about 0.5%, but closed well above its session low of 24,768. The S&P 500 fell 0.55%, while the Nasdaq Composite fell 0.42%.
Tech stocks bounced from session lows as investors took advantage of an intraday slump and piled into blue chips, pushing the tech-heavy Nasdaq out of correction territory.
Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX) and Google-parent Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) closed higher.
The reversal in some tech blue chips from intraday lows comes ahead of a deluge of corporate earnings for the sector from Microsoft (NASDAQ:MSFT) due Wednesday, along with Alphabet, Twitter (NYSE:TWTR) and Amazon.com (NASDAQ:AMZN) slated for Thursday.
Wall Street’s attempt to close above the flatline was limited by plunging industrials as investors mulled over mixed earnings from heavyweights Caterpillar (NYSE:CAT), 3M (NYSE:MMM) and United Technologies (NYSE:UTX).
The S&P 500 Industrials closed more than 1% down.
McDonald’s (NYSE:MCD), meanwhile, served up above-forecast earnings and revenue, sending its shares soaring about 6%. While a surge in shares of PulteGroup (NYSE:PHM) bolstered homebuilders after posting better-expected third-quarter results, buoyed by an increase in homebuilding revenues.
Energy, meanwhile, also pressured the border market, as oil prices plunged 4% as Saudi Arabia vowed to meet the global oil demand as sanctions on Iran, slated for Nov. 4, are expected to dent global oil supplies.
In trade, meanwhile, Larry Kudlow, top White House economic advisor, told reporters that President Donald Trump will meet with China’s president, Xi Jinping, next month at the G-20 summit in Buenos Aires, Argentina, raising investor hopes that both leaders will seek to deescalate trade tensions.
On the corporate news front, Tesla (NASDAQ:TSLA) rallied more than 12% as Wall Street turned bullish on the automaker after the company unexpectedly announced it would release third-quarter results Wednesday, which CEO Elon Musk has said would show a profit for the period.
In an effort to streamline production at its assembly factor, Tesla said Tuesday it will eliminate some interior design options for the Model S sedan and Model X sport utility vehicle.
Texas Instruments (NASDAQ:TXN), meanwhile, fell more than 5% in after-hours trade after providing soft fourth-quarter guidance and missing third-quarter revenue estimates.
Top S&P 500 Gainers and Losers Today:
Cadence Design Systems (NASDAQ:CDNS), PulteGroup (NYSE:PHM) and McDonald’s (NYSE:MCD) were among the top S&P 500 gainers for the session.
DISH Network (NASDAQ:DISH), Caterpillar (NYSE:CAT) and Diana Shipping (NYSE:DSX) were among the worst S&P 500 performers of the session.