U.S. stocks traded mixed on Tuesday, October 13, as investors reviewed third-quarter bank earnings and a sell-off in semiconductor shares. The Dow Jones Industrial Average advanced, while the S&P 500 and Nasdaq Composite slipped in early trading.
Lower oil prices and a rise in UnitedHealth shares supported the Dow, but losses in technology stocks held back the broader market.
Dow Climbs While S&P 500 and Nasdaq Decline
The Dow gained 383 points, or 0.7%, shortly after the opening bell. Meanwhile, the S&P 500 fell 0.1%, and the Nasdaq Composite dropped around 0.3%. The moves followed Monday's session, when the S&P 500 closed at 7,807.24 and the Dow finished at 51,850.55.
UnitedHealth Group helped lift the Dow after it reported third-quarter revenue of USD 112.7 billion and adjusted earnings of USD 4.69 per share. The health insurer raised its full-year adjusted earnings forecast to at least USD 20.50 per share. Its shares rose about 5% in early trading, while bank stocks showed mixed moves following their results.
JPMorgan Misses Forecasts as Goldman Sachs Profits Rise
JPMorgan Chase reported a 6% increase in third-quarter profit to USD 15.3 billion. Earnings reached USD 5.57 per share, below the USD 5.90 expected by analysts. Reported revenue rose 8% from a year earlier to USD 50.2 billion. The bank recorded USD 658 million in securities losses during the quarter.
Excluding those losses, JPMorgan earned USD 5.75 per share. Its trading revenue increased 15% from a year earlier to USD 10.3 billion, although fixed-income trading missed expectations. The bank also raised its 2026 net interest income outlook, excluding markets, to USD 97.5 billion.
Goldman Sachs, meanwhile, announced quarterly profit of USD 5.29 billion, up 29% from a year earlier. Revenue rose to USD 18.68 billion as stock-trading revenue jumped 72% to USD 6.44 billion. Goldman recorded USD 1.65 billion in advisory revenue, a quarterly record for the firm.
Wells Fargo also earned USD 1.87 per share, beating estimates, but its USD 21.87 billion revenue missed forecasts. Meanwhile, Citigroup reported USD 23.85 billion in revenue and USD 4.4 billion from fixed-income markets.
Chip Stocks Fall After Sharp Losses in South Korea
Technology shares came under pressure after South Korea's Kospi index dropped about 5.5%. Samsung Electronics lost 7.4%, while SK Hynix fell 10.1%. The declines followed reports of advances in memory-chip technology from Chinese manufacturer CXMT, raising concerns about competition for established suppliers.
The selling extended to Wall Street. Micron Technology fell about 5.5% in early dealings, and Advanced Micro Devices dropped around 3.3%. Shares of other chip companies also weakened as investors reassessed spending on artificial intelligence equipment.
The declines weighed on the Nasdaq despite gains elsewhere in the market. In Japan, the Nikkei 225 fell 1.8%, with Tokyo Electron losing more than 7%. Taiwan's Taiex also declined, extending the regional weakness.
Oil Prices Ease as Inflation Data Approaches
Oil prices retreated after climbing on Monday. Brent crude fell around 1.9% to USD 104.62 per barrel, while U.S. benchmark crude slipped 2.1% to USD 91.78. Even after the decline, fuel costs remained elevated amid tensions in the Middle East.
Attention also turned to borrowing costs. JPMorgan Chief Executive Jamie Dimon warned that a further rise in long-term interest rates could strain borrowers refinancing debt. However, he stressed that he was not predicting a move to 6%. "I'm not predicting it," Dimon said, describing the higher rate as a scenario borrowers should be prepared for.
Investors will next assess U.S. inflation figures due later this week, alongside further corporate earnings. Bank of America and Morgan Stanley are scheduled to release quarterly results on Wednesday, October 14.
Those reports will add to Tuesday's mixed picture of bank profits, trading revenue and lending activity. Existing-home sales figures are also due Tuesday, providing a measure of activity as borrowing costs remain high.
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