Dow Jones: Blue Chips Hit Record, Beyond Meat Soars, Netflix on Deck as US Stocks Rally on Earnings

Dow Hits Record High as Earnings Power Broad Market Gains

The Dow Jones Industrial Average surged to a fresh intraday record on Tuesday, lifted by a slate of better-than-expected corporate earnings. While the S&P 500 added modestly to recent gains, the Nasdaq Composite dipped slightly as investors rotated out of mega-cap tech stocks following a sustained rally.

General Motors, 3M, and Coca-Cola delivered standout results, driving the Dow 0.74% higher to 47,125.66 at midday. The S&P 500 edged up 0.1%, while the Nasdaq slipped 0.1%, as chip and software names took a breather. Traders are now weighing strong corporate fundamentals against elevated valuations and looming macro risks.

What’s Driving the Dow’s Outperformance Today?

Dow components were the session’s biggest beneficiaries of upbeat earnings reports. General Motors surged over 15% after raising its full-year earnings outlook and reporting a stronger-than-expected Q3. The company also reassured markets by lowering its projected tariff-related impact.

3M climbed 5.6% following its second upward revision to annual profit guidance this year. Coca-Cola added 3.3% after its earnings and revenue exceeded estimates. Crown Holdings gained 4% after posting solid results and boosting guidance, adding to strength in traditional industrials.

Meanwhile, RTX soared 9% on strong aerospace and defense demand, and GE Aerospace rose over 2% following its earnings beat and raised outlook. Amazon’s 2.6% advance offered additional support to the Dow.

Why Did Tech Stocks Stall Despite Strong Fundamentals?

Mega-cap tech stocks paused after a strong run-up, with Nvidia, Alphabet, and AMD each falling between 0.4% and 2%. The Nasdaq’s slight decline reflects traders locking in profits ahead of key earnings reports from Tesla, Netflix, and IBM.

According to FactSet, the “Magnificent Seven” stocks are projected to grow earnings by nearly 15% year-over-year, more than double the broader S&P 500 average. However, high valuations mean even modest disappointments could weigh on sentiment.

Why Is Beyond Meat Suddenly Soaring Again?

Beyond Meat surged over 80% Tuesday, extending its two-day rally to more than 200% as retail traders reignited speculative momentum. Monday’s move was sparked by its inclusion in the Roundhill Meme Stock ETF (MEME), a signal to active traders that the name had regained meme stock status.

Tuesday’s gains were further fueled by news of an expanded Walmart distribution deal, which bolstered sentiment around the company’s growth potential. The rally mirrors the stock’s explosive runs in 2021 and underscores the return of retail-driven speculation in select names.

What Should Traders Watch Into the Close and Beyond?

All eyes turn to Netflix, which reports earnings after the bell and could provide early signals on discretionary tech and streaming sector trends. With valuations running high, even slight underperformance may weigh on broader sentiment heading into Wednesday’s Tesla earnings.

Traders are also watching Friday’s CPI report closely for any signs of cooling inflation, which would reinforce growing expectations of a rate cut at the Federal Reserve’s late October meeting.

The 10-year Treasury yield dipped below 3.96%, reflecting rising bets on policy easing. With more than 75% of S&P 500 companies beating earnings estimates so far, near-term momentum remains positive — but the bar for tech earnings is now exceptionally high.

More Information in our Economic Calendar.