S&P 500 closes higher Tuesday, but logs first 3-month losing streak since 2020: Live updates

The three major indexes finished Tuesday's session up, regaining some ground at the end of a difficult month.

The Dow closed up 0.4%. The S&P 500 and Nasdaq Composite added 0.7% and 0.5%, respectively.

Despite the gains, Tuesday marked the end of a losing month for the three major indexes. The Dow lost 1.4% in October, while the S&P 500 and Nasdaq slid 2.2% and 2.8% on the month, respectively.

It marked the third consecutive negative month for all three of the indexes. For both the Dow and S&P 500, it was the first three-month losing streak since 2020.

— Alex Harring

The Federal Reserve will likely face a "bumpy path" to its 2% inflation target, even if it decides to keep rates steady at its November meeting, according to Joe Davis, chief global economist at Vanguard.

"Inflationary pressures and broader macro trends are heading in the right direction, but last week's GDP report and a still strong labor market highlight the bumpy path the Fed faces on the road to their 2% target," Davis said in written commentary. "We believe 1-3 more hikes will be needed for them to confidently achieve their goal over the next few years."

In fact, the economist said rates will likely be restrictive for longer. He also said the higher neutral rate policymakers will land on after cutting rates will be closer to 3.5% than the anticipated 2.5%.

"The market is finally acknowledging this, which has been one source of some of the recent market volatility," Davis wrote.

— Sarah Min

Shares of Zillow were down more than 6% in afternoon trading after a Missouri jury ruled against the National Association of Realtors and brokerage firms in a collusion case.

The National Association of Realtors said in a statement that it plans to appeal the ruling.

Shares of Zillow were higher for the day before news of the ruling broke.

— Jesse Pound

Stocks were trading at session highs Tuesday shortly into the final hour of trading. The Dow Jones Industrial Average was up by 131 points, or 0.4%. The S&P 500 was higher by 0.67%, while the Nasdaq Composite added 0.52%.

All 11 S&P 500 sectors were trading in positive territory.

— Sarah Min

A potential U.S. government shutdown is currently the biggest threat to the economy, according to The Washington Center for Equitable Growth interim chief economist Jonathan Fisher. Congress now has until Nov. 17 to reach an agreement on the federal budget.

Although Goldman Sachs estimated that a shutdown would have a limited short-term impact on economic growth, Fisher believes the bigger issue may by the potential damage it poses to the U.S.'s credit reputation. 

"The last fight over the debt ceiling led Fitch to downgrade the trustworthiness of U.S. credit, and a repeat of the May showdown could snowball further from there. Downgrading the credit trustworthiness further could raise the interest rates the U.S. has to pay to issue Treasury bonds, and higher rates raise the cost of borrowing, which further constrains the U.S. budget," Fisher said.

The risk of another breakdown in budget negotiation talks should concern the Federal Reserve, he added. According to Fisher, another budget impasse could increase business and consumer uncertainty, which would slow down the economy.

— Hakyung Kim

Funds that track cybersecurity stocks were outperforming on Tuesday, boosted by a 9% jump for Varonis Systems.

The SPDR S&P Kensho Future Security ETF (FITE), which counts Varonis as its largest holding, rose more than 2% on Tuesday. The First Trust Nasdaq Cybersecurity ETF (CIBR) and Global X Cybersecurity ETF (BUG) climbed about 1.6% each.

The big gain for Varonis came after the software company reported better-than-expected adjusted earnings for the third quarter on Monday evening, according to StreetAccount. Varonis' fourth-quarter earnings guidance also topped expectations.

— Jesse Pound

The energy sector experienced the biggest month-to-date sector losses in the S&P 500 despite a slight uptick after the start of the Israel-Hamas war, down 6.3% in October. Chevron and Exxon Mobil fell 14.1% and 10.1%, respectively after announce both announcing mega-mergers.

Meanwhile, consumer discretionary stocks also had a difficult month, falling 4.7%. Aptiv, Pool, eBay and Domino's Pizza all lost 11% and more.

The only positive sector for the month was utilities, which added 1.4%. NRG Energy jumped nearly 10%, followed by Public Service Enterprise Group rallying 8.6%.

— Hakyung Kim

Tesla is down 20.5% in the month of October and 33.5% since its 52-week high in mid-July to lead this month's declines in the Magnificent Seven group of megacap tech stocks. Nvidia has fallen more than 7% in October and is down roughly 20% since its late August high. Alphabet is off 5.8% in October and 12.7% since its mid-October peak. All three have underperformed the 2.5% decline in the S&P 500.

Apple is about 1% lower in October but more than 14% below its mid-July high, while Meta Platforms is little changed this month but more than 9% lower than its mid-October high reached just a couple of weeks ago.

Only two of the Mag 7 are significantly higher this month: Microsoft is up about 6.8%, limiting its loss since its mid-July high to about 8%. Amazon has advanced 4.4% in October, cutting its loss since its mid-September high to about 9%.

— Scott Schnipper

Investors should stay defensive as the year end approaches, according to Dubravko Lakos-Bujas, chief global equity strategist at JPMorgan.

The strategist said that the lagged effects of the Federal Reserve's interest rate hikes will be more dramatic than traders are currently expecting, and urged investors to hold cash and move into more resilient parts of the market. He favors utilities and health care, as well as dividend aristocrats.

"I think there's just a lag effect," he said Tuesday on CNBC's "Halftime Report." "And this time around in this cycle, the lag simply may be longer than what we're accustomed to sort of seeing in the prior cycles because of the unprecedented injection that we've got during Covid, and because of a relatively healthy starting point for things like balance sheets."

His 4,200 year-end target for the S&P 500 is just a little above where the S&P 500 closed Monday, according to the CNBC Market Strategist Survey.

— Sarah Min

The S&P 500 was trading at session highs during early afternoon trading. The broader index was up by 0.32%.

Ten out of the 11 S&P 500 sectors were trading in positive territory, led by gains in real estate, utilities and financials.

Communication services was the lone laggard, down by 0.3%.

— Sarah Min

Caterpillar and Chevron are the biggest losers in the Dow Jones Industrial Average this month.

Since the start of October, the 30-stock index has shed more than 1.6%, weighed down by Caterpillar, which has plunged 17%. Shares of the equipment manufacturer dropped 6% on Tuesday after the company said in its earnings presentation that fourth-quarter revenue would only be "slightly" higher than it was the same quarter last year.

Chevron, down nearly 14% so far this month, is the second-biggest loser in the index. Shares of the energy giant plummeted after the company reported third-quarter earnings that came below expectations.

On the other hand, Verizon — up 7.8% this month — led the Dow's biggest gains, followed by Nike, Microsoft and UnitedHealth.

— Lisa Kailai Han

Spot gold is poised to notch its best monthly gain since November 2022 as the Israel-Hamas War and high interest rates have pushed investors to seek out safe havens.

The metal has traded as high as $2,009.29 in recent days, testing the key $2,000 level. CNBC Pro subscribers can click here to see why analysts are bullish on gold and where they think it could go next.

— Alex Harring

These are some of the stocks making notable midday moves on Tuesday:

• Anheuser-Busch — The beer maker climbed 4.5% after reporting earnings per share in the third quarter that exceeded the consensus forecast.
• JetBlue — The airline stock plunged 11% to a nearly 12-year low after Jet Blue posted third-quarter results that came in below analysts' expectations.
• Arista Networks — Shares of the cloud networking solutions company rallied more than 12% following a better-than-expected quarterly earnings report.

See the full list here.

— Alex Harring

The Nasdaq Composite and concentrated Nasdaq-100 are on pace to cap off a third straight negative month for the first time since June 2022.

The Nasdaq-100 is down 2.8% month to date, led to the downside by Align Technology, Enphase Energy and On Semiconductor. All three stocks are on pace to finish the month more than 30% lower.

Other major laggards include Lucid Group and Tesla. Both electric vehicle companies have shed at least 26% in October. Airbnb and Marvell Technology have slumped about 14%.

Some of 2023's AI poster stocks are also on pace for monthly losses. Nvidia's edged down 8%, while Advanced Micro Devices and Alphabet have slipped about 6% each.

A handful of popular technology stocks have bucked the market's broad October downtrend. Netflix shares have surged more than 7%, while Microsoft and Amazon have gained about 6% and 4%, respectively.

— Samantha Subin

The SPDR S&P Regional Banking ETF (KRE) has slipped more than 5% from the start of the month, signaling bank stocks are still under pressure.

KRE members Truist Financial and M&T Bank have slipped roughly 1% and 11% from the start of the month. First Horizon, meanwhile has pulled back about 3% in October.

— Brian Evans

October was brutal for 10 of the 11 sectors in the S&P 500; utilities are emerging as the sole bright spot.

The beleaguered sector is the underperformer in 2023, with a 16% loss for the year. However, it's managing to hold on to a 0.3% gain this month.

Big winners in the sector this month include NRG Energy, up more than 8%, and Public Service Enterprise Group, up 7%. NRG offers a dividend yield of 3.6%, while Public Service Enterprise yields 3.7%.

FirstEnergy rounds out the top three performers in the sector this month, with a gain of nearly 3.5%. The stock yields 4.6%.

Utilities collectively have suffered in today's higher rate environment, as rising rates make it more costly for companies to refinance their debt.

-Darla Mercado

This year will be just the ninth year since 1928 that the S&P 500 will have fallen in August, September and October, according to Bespoke Investment Group.

The three last times the broader index fell during each of those months was in 2016, 1990 and 1977. The S&P 500 gained 3.42% in November 2016 and 5.99% in November 1990, according to Bespoke.

The S&P 500 rallied on Monday and ended the day out of correction territory, but is still down roughly 2.7% for the month.

— Pia Singh

Sarepta Therapeutics plunged on Tuesday, a day after the company issued results from a gene therapy study for Duchenne muscular dystrophy.

On Monday, the company said that participants who were treated with Elevidys, Sarepta's medication, showed an increase in motor function, versus patients who received a placebo. The results fell short of a primary endpoint in the study. However, the treatment did show improvements in other respects: the time it took for patients to walk 10 meters, for instance.

This development was a driver behind Cantor Fitzgerald's subsequent downgrade of the stock on Monday. The firm slashed its rating to neutral from overweight, and it cut the price target to $40 from $166. The new price target reflects downside of nearly 63% from Monday's close.

"There are a lot of uncertainties ahead, and we're moving to the sidelines as a result of what we expect to be volatile times," said analyst Kristen Kluska.

-Darla Mercado, Michael Bloom

The Treasury Department announced Tuesday that Series I bonds will pay an annual rate of 5.27% over the next six months, up from 4.3% since May.

The interest rate on the bonds is variable and tied to inflation. It rose above 9% for part of 2022.

The rate on I bonds is still below the yield on U.S. Treasurys that mature in one year or less, however.

— Jesse Pound, Kate Dore

The October consumer confidence report showed a reading of 102.6, according to the Conference Board on Tuesday. That was more than the 100.0 estimate from economists polled by Dow Jones. It was lower than the prior reading of 103.0.

— Sarah Min

The S&P 500 opened little changed Tuesday.

The Dow Jones Industrial Average fell by 91 points, or 0.3%. The S&P 500 was flat and the Nasdaq Composite was down by 0.2%.

— Sarah Min

These are the stocks moving the most in premarket trading:

• JetBlue — The stock fell more than 7% after posting third-quarter results that came in below analysts' expectations.
• Pinterest — Pinterest shares popped more than 16% on stronger-than-expected third-quarter results.
• Chewy — The pet food seller added 4% in premarket trading after Morgan Stanley upgraded the stock to overweight from equal weight.

Read the full list of stocks moving here.

— Lisa Kailai Han

Compensation costs for U.S. nongovernment workers rose at a slightly faster than expected pace in the third quarter, the Labor Department reported Tuesday.

The employment cost index, which the Federal Reserve watches closely as an inflation barometer, increased 1.1% for the July-through-September period, 0.1 percentage point more than the Dow Jones consensus estimate.

That also was a slightly faster pace than the previous quarter, and took the year-over-year increase to 4.3%. During the same period in 2022, compensation costs accelerated at a 5% pace. The annual increase was 4.5% for the second quarter of 2023.

—Jeff Cox

The dollar index is on track to end the month lower, marking its first losing month since July.

The index, which weighs the U.S. greenback against a basket of foreign currencies, has slipped 0.2% on the month. (Tuesday's close also marks the end of the October trading month.)

That would snap back-to-back wins seen in August and September, which saw respective gains of 1.7% and 2.5%. Before that, the index dropped 1% in July and 1.4% in June.

— Alex Harring, Gina Francolla

Pfizer shares dipped 0.5% in premarket trading. The drugmaker on Tuesday reported a narrower than expected adjusted loss for the third quarter as it recorded charges largely related to struggles for its Covid antiviral treatment Paxlovid and Covid vaccine.

Pfizer said that it recorded a $5.6 billion charge for inventory write-offs in the third quarter due to lower-than-expected use of Covid products. Of these write-offs, $4.7 billion are chalked up to Paxlovid and $900 million are attributed to the company's company vaccine.

The pharmaceutical giant also reiterated the full-year adjusted earnings and revenue guidance it announced two weeks ago, which is drastically lower than its initial projections due to weakening demand for its Covid products.

— Annika Kim Constantino, Sarah Min

JetBlue slid more than 7% in Tuesday premarket trading after the airline's third-quarter earnings missed Wall Street expectations.

The company lost 39 cents per share, excluding items, in earnings for the quarter, wider than the loss of 25 cents forecasted by analysts polled by LSEG. Revenue also underwhelmed Wall Street, with the company posting $2.35 billion against a $2.38 billion consensus estimate.

JetBlue shares have dived 35.2% since 2023 began.

— Alex Harring

Caterpillar shares quickly gave back a gain and were last down more than 3%. Caterpillar said in its earnings presentation that fourth-quarter revenue would only be "slightly" higher than the same quarter a year before, worrying investors it could miss analysts' expectations.

— Fred Imbert

Caterpillar traded more than 3% higher in the premarket after the industrial giant reported better-than-expected results for the third quarter.

The company earned $5.52 per share, excluding items, on $16.8 billion in revenue. Analysts expected a profit of $4.79 per share on revenue of $16.59 billion, according to LSEG.

Caterpillar's construction industries and energy and transportation segments saw double-digit sales growth from the year-earlier period.

— Fred Imbert

Shares of Nvidia fell more than 0.5% in the premarket after The Wall Street Journal reported, citing sources familiar with the matter, that the chipmaker may cancel billions of dollars in orders from China due to tighter U.S. controls.

The report said Nvidia had already finished deliveries of its AI chips to China for 2023 and wanted to work ahead on some of next year's orders before new sales curbs to China took effect. However, the U.S. government told Nvidia last week that the restrictions were effective immediately.

The Journal also noted, citing a source, that 2024 orders for high-end AI and cloud chips from major Chinese companies topped $5 billion.

— Fred Imbert

European stocks had a mixed open, with the benchmark Stoxx 600 index initially flat before trading 0.24% higher by 8:20 a.m. London time.

The index is on course for a 4.24% decline in October, its worst monthly performance since September 2022, according to LSEG data.

Oil and gas stocks were the only sector in the red Tuesday, falling 1.26% after BP missed profit estimates.

— Jenni Reid

Japan's yen weakened after the country's central bank kept interest rates steady and said it will allow more flexibility in its yield curve control policy.

The Bank of Japan said the target level of the 10-year Japanese government bond yield will be held at 0%, but will take the upper bound of 1% "as a reference."

The news sent the yen down nearly 0.6% against the dollar, briefly breaching the 150 per dollar threshold.

The benchmark Nikkei 225 reversed earlier falls to rise 0.7%, while the Topix added 1.14%.

The BOJ also raised its inflation forecast for the next fiscal year, it now sees the core consumer price index rising 2.8%, above the 1.9% it predicted three months ago.

— Shreyashi Sanyal

Japan's retail sales climbed 5.8% in September from a year ago, a slower expansion compared with the 7% growth seen in August.

This is the first month that the growth rate softened after four straight months of accelerating growth, and was slightly lower than the 5.9% expected by economists polled by Reuters.

Total commercial sales came up to 50.35 trillion yen ($337.17 billion) in September, its highest level since March.

— Lim Hui Jie

China's new normal is going to be lower growth than before, said Fred Neumann, HSBC's chief Asia economist & co-head of global research.  

"We probably need to adjust our expectations in terms of what the upper ceiling is for China's growth," Neumann told CNBC's "Squawk Box Asia."

HSBC now sees China's economy growing 4.9% this year and 4.6% in 2024. Neumann said that will likely be the range of growth for China for the next couple of years and "that's probably as good as it gets as long as the property market continues to struggle."

Neumann said even though projections for China's growth are more modest than they were before the pandemic, there are still some signs of economic recovery underway and growing areas of investments including the electric vehicle space.

Beijing's current growth target is at 5% for 2023. Data earlier in the day showed China's manufacturing activity logged an unexpected contraction in October.

— Shreyashi Sanyal

Meta Platforms saw its shares caught up in a broad tech sell-off last week — but several analysts remain bullish.

Meta's stock fell 3.86% last week, although was trading over 2% higher Monday.

"I believe this tech sell off here, [when] we look back three, six months, I view this as more of a golden opportunity, not the time [for it] to head into hibernation mode," Dan Ives from Wedbush Securities told CNBC's "" on Thursday, in the midst of the market downturn.

Other analysts also weighed in on the outlook for the stock.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

Apollo Global Management and KKR & Co. are both still on track to eventually join the S&P 500 Index, according to a Barclays report to clients out Monday, although the immediate outlook may be diminished by the effect of higher interest rates on both companies' GAAP-reported earnings.

After Blackstone was admitted to the S&P 500 in September, "the index inclusion narrative has become increasingly front and center" for alternative asset managers, analyst Benjamin Budish said in the note. The problem for Apollo and KKR, however, is that S&P demands earnings measured by Generally Accepted Accounting Principles in the most recent quarter, "and in aggregate over the four preceding quarters."

But with interest rates having climbed in the third quarter, "this could result in unrealized losses on APO's/KKR's fixed income investments (largely related to their insurance businesses)," Barclays argued, noting that GAAP earnings for both had been negative in prior quarters that saw 10-year Treasury yields rise by similar magnitudes.

— Scott Schnipper, Michael Bloom

Check out the companies making headlines after hours.

Arista Networks — The cloud networking solutions company added 6% Monday after the bell. Arista Networks reported $1.83 in earnings per share, excluding items, on $1.51 billion in revenue. Analysts polled by FactSet had estimated $1.58 in earnings per share on $1.48 billion in revenue.  

Lattice Semiconductor — The maker of low-power programmable chips dropped about 16% in late trading. Lattice's fourth-quarter revenue forecast of $166 million to $186 million fell short of analysts' consensus estimate of $195.7 million, according to FactSet's StreetAccount.

Wolfspeed — Shares of the chipmaker jumped more than 11% following its fiscal first-quarter results. The company posted a loss of 53 cents per share, while analysts called for 67 cents per share, per LSEG, formerly known as Refinitiv. Revenue fell short of estimates, coming in at $197 million, while analysts forecast $208 million.

The full list can be found here.

— Hakyung Kim

U.S. stock futures were little changed Monday night.

The Dow Jones Industrial Average added just 2 points, or 0.01%. Futures tied to the S&P 500 inched down 0.02%. Nasdaq 100 futures were unchanged.

— Hakyung Kim