Market Close: Stocks Higher as Chipmakers Rally and Oil Pulls Back • 10/27/26
00:00 CNBC Business News Update. I'm Jessica Eddinger. Wall Street opens Wednesday morning after a winning Tuesday for the major averages. There was a chip stock rally as well. The Dow was up 15 points. Caterpillar shares led it higher. They were up 3%. The S&P 500 index was up 45 points.
00:21 That was a half percent. The NASDAQ. Well, a chip rally helped that index on Tuesday. Up 308 points, more than 1%. chipmakers like cerebrus up 10%. Broadcom up 4% AMD up 5% most in the green. The Fed expected to hold interest rates steady when it makes a post-meeting announcement. Wednesday afternoon, investors are watching interest rates. Investors are focused, though, on earnings reports.
00:49 Companies from Royal Caribbean Cruises to Coca-Cola and UPS all saying they're seeing steady consumer spending, even with high inflation. High fuel prices and interest rates raising concerns. about slower consumer spending during the third quarter. We're in the busiest week of earnings season right now. Some investors are watching the earnings and getting a little cautious on stocks. But when I think about S&P in general, if you look at earnings and the equity risk premium you're getting, essentially you can get 5% in bonds or you can get an extra quarter of a point in yield in equity.
01:23 It's like, why would you gamble on, you know, that point to 5? Like that doesn't make a lot of sense to me. At this point in the cycle, I'd be looking for additional ways to protect my portfolio. That's Fortress Chief Strategist Elizabeth Burton on CNBC. Boeing shares tanked more than 10% on Tuesday after some commentary on the earnings call. Here's more from CNBC's Carl Keentania. Management makes some comments on the earnings call about the pace of 737 max production. We talked with Kelly Ordberg.
01:51 Our Philibault asked about when Ortberg expected to get to 47 max planes a month and why the pace of production was taking longer than expected. We're working on that. We're trying to stabilize. I know everybody wants us to go faster, but we're going to do it right. Make sure that the production system is stable. We're delivering high quality, safe aircraft. And so I expect that stabilization period will last the balance of this year into early next year. Boeing's pacing for the worst day since the tariff announcements in April of 25. Consumer confidence came in the highest since June. Here's CNBC Senior Economics Reporter Steve Leesman. I'm not saying that consumer has gotten all of a sudden very happy here, but certainly happier than they previously were. Consumer confidence coming at 91.7 versus a consensus of 81. As mortgage rates went up in September, sales of newly built homes fell. Down 5.3% year over year. This count is based on signed contracts. So people out shopping in September when, of course, we all know, mortgage rates shot up.
02:53 We started the month around 6.8% on the 30-year fix. and went all the way up to 7.5%. That really hit the buyers out there. That's CNBC's Diana Olik. Oil prices pulled back a bit on Monday. U.S. crude back below $100 a barrel on reports Iranian officials were talking about conditions for ending the U.S. war. On Wednesday's watch list, the earnings parade continues. We get numbers from Airbus, biogen, Boston Scientific, GSK, GE Health Care, Google Parade, FedEx, Ford, Microsoft and Chipotle. I'm Jessica Eddinger, CNBC. From gas prices to housing prices, from government spending to consumer spending,
03:36 from the AI boom to the data center backlash. How will this election hit your pocketbook and your portfolio? Continuing coverage, the economy election, CNBC.
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