Indexes Turn Red as Stocks Give Up Morning Gains

Earnings Season - The Q3 earnings season has begun, with rising corporate earnings expectations providing a bullish backdrop for stocks. 78% of S&P 500 companies that have reported so far have beaten forecasts, and over 22% of companies that provided guidance are expected to exceed analysts' expectations, the highest in a year [1] - Q3 profits are projected to rise by 7.2% year-over-year, marking the smallest increase in two years, while sales growth is expected to slow to 5.9% year-over-year from 6.4% in Q2 [1] Market Sentiment - The ongoing US government shutdown is negatively impacting market sentiment and delaying key economic reports, including unemployment claims and trade reports [2] - The shutdown could lead to the furlough of 640,000 federal workers, potentially increasing jobless claims and raising the unemployment rate to 4.7% [2] Precious Metals - Escalating trade tensions between the US and China, along with the government shutdown, have led to increased demand for precious metals, with gold and silver reaching new all-time highs [3] Economic Indicators - The October NAHB housing market index rose by 5 points to a 6-month high of 37, surpassing expectations of 33, while the October Philadelphia Fed business outlook survey fell by 36.0 points to a 6-month low of -12.8, weaker than the expected 10.0 [4] Company Updates - Taiwan Semiconductor Manufacturing Co. (TSMC) has raised its projections for 2025 revenue growth for the second time this year, although its stock has turned lower after initially setting a new record high [5] - JB Hunt Transport Services reported Q3 revenue of $3.05 billion, exceeding the consensus of $3.02 billion, leading to an increase of over 18% in its stock price [14] - Snap-on Inc reported Q3 EPS of $5.02, stronger than the consensus of $4.64, resulting in a stock increase of over 3% [15] - Zions Bancorp announced a $60 million provision and a charge-off of $50 million due to legal actions related to commercial loans, leading to a stock decline of over 9% [18]