Bob Pisani is off; this post was written by CNBC producer Robert Hum.
Stocks are trading lower Tuesday, as the dollar strengthened, following China’s surprise announcement that it will raise interest rates by 25 basis points.
The Dollar Index is having its best day in over 2 months, and that’s causing most metals and energy commodities to fall 2 percent and has put many commodity stocks under pressure in trading this morning:
Rio Tinto down 5 percent,
BHP Billiton down 3 percent,
Newmont Mining down 4 percent,
Freeport-McMoRan down 2 percent,
Alcoa down 2 percent,
U.S. Steel down 2 percent.
Many Earnings Beats, But Stocks Down Absent Strong Q4 Guidance
A number of companies reported stronger-than-expected earnings in the last quarter, but that’s not generating much enthusiasm from traders. Why is that the case? Some companies saw fairly tepid revenue growth (either merely inline or even below expectations — continuing a bit of trend from the last few days), while others failed to blow away earnings expectations in their guidance for the current quarter.
Don’t be fooled too…although a few companies did raise their earnings outlook for the year, traders noticed that much of that strength came as those companies rode the coattails of a strong first 9 months of the year – not because of expectations to a robust finish to the year.