Dow adds more than 100 points to notch third positive day, as falling Treasury yields lift stocks: Live updates

Here's how the major indexes ended Tuesday's trading session:

• The Dow Jones Industrial Average rose 134.65 points, or 0.4%, to close at 33,739.30.
• The S&P 500 gained 0.52% at 4,358.24.
• The Nasdaq Composite was higher by 0.58% at 13,562.84.

— Pia Singh

Shares of Hannon Armstrong could rally despite rising investor concern around a volatile macroeconomic environment, according to Baird.

The firm reiterated its outperform rating of Hannon Armstrong on Tuesday. Shares added over 7.5% in morning trading.

"This frustration and bearish sentiment for broader renewables sector growth outlook in the near term have compounded weakness and led to shares being oversold in our view," analyst Ben Kallo wrote. "Despite the uncertain outlook from others in the space, we believe HASI is set up for a strong Q3 and see a clean quarter as a potential catalyst."

CNBC Pro subscribers can read the full story here.

— Lisa Kailai Han

The conflict unfolding in Israel in recent days has done little to shift the price dynamic in oil markets, according to Citi's Ed Morse.

"The price dynamic hasn't changed," the global head of commodities told CNBC's "Squawk on the Street" on Tuesday. "There's all sorts of scenario possibilities of how it might change, but we haven't seen them unfolding, and it really is a function of how much this battle is going to be constrained geographically and how much it might spread."

While a potential nuclear deal between Saudi Arabia and Israel, and sanctions from the U.S. remain possibilities that could impact oil markets in the future, "nothing at the moment is really changing the supply demand balance," he said.

— Samantha Subin

Rivian's 22% selloff this month has opened up an attractive buying opportunity, according to UBS.

The firm upgraded shares of the electric vehicle manufacturer to a buy rating, driving shares higher by about 5.4%.

"With the raise out of the way, the market can refocus on improving fundamentals. We also see a reduced probability of an additional capital raise over the next ~1 year with capital likely not needed until the end of 2025," analyst Joseph Spak wrote.

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— Lisa Kailai Han

As GLP-1 drugs, more commonly known as weight loss drugs, become more widely distributed, several experts on Wall Street are worried that they could upend PepsiCo's business. However, CEO Ramon Laguarta told investors on the company's earnings call on Tuesday that drugs like Ozempic and Wegovy thus far have had a "negligible" impact. 

Laguarta cited PepsiCo's various portfolio transformation efforts as one of the company's strategic pillars in offsetting negative impacts from weight loss drugs. 

He mentioned the company has been working at "reducing sodium, reducing fat, reducing sugar, reducing the portions of our products [and] adding some new cooking methods to our snacks. [These] are all very positive trends that will help us deal with the portfolio if needed in the future."

Other tailwinds have thus far helped offset downsides from the weight loss drugs, the CEO added. 

"We're seeing urbanization as a big driver of adoption of our categories. We're seeing middle class development. We're seeing lifestyle and people snacking to eat, so meals becoming more mini meals and much more unstructured during the day, being a big driver of both beverages and snacks," said Laguarta. 

To be sure, he noted that the company will continue to assess growth of these drugs and their impact.

— Hakyung Kim

The firm reiterated its buy rating on the payment company. Shares of Block were up 4.6% on Tuesday after Bank of America reiterated its buy rating on the payment company, saying investor sentiment is too negative given Block's high-quality fundamentals.

"Shares underperformed in '22 due to macro concerns, but we believe the stock is not being given enough credit for the general resilience the business has shown to date as well as its opex [operating expenses] discipline," wrote analyst Jason Kupferberg.

CNBC Pro subscribers can read the full story here.

— Lisa Kailai Han

Barclays is bracing for some ongoing rotation out of Netflix as investors await more visibility into the streaming company's topline growth heading into third-quarter earnings.

"Netflix could see some sequential subscriber growth acceleration vs Q2; overall engagement trends for streaming however are showing signs of maturity even as revenue growth dependence on price is increasing," wrote analyst Kannan Venkateshwar in a Tuesday note to clients.

While the rollout of its paid sharing initiative has provided a potential tailwind for Netflix, muted pricing growth and weak average revenue per user performance could pose some hurdles for the streaming giant.

"In our opinion, the key metric which the narrative now depends on is overall revenue growth rather than just net adds and in order for the stock to work, revenue growth next year have to accelerate to mid teens, Venkateshwar said.

"This is likely to be tough to do on the back of price alone," he added given that subscriber growth even with the paid sharing initiative remains in only the high single digits and would need to hit the mid teens next year.

The firm retained its equal weight rating and $375 price target, representing about 3% downside from Monday's close. Shares have risen more than 31% since the start of 2023.

— Samantha Subin

Shares of information technology company Juniper Networks fell about 1.7% on Tuesday after a downgrade to neutral from overweight by JPMorgan.

Analyst Samik Chatterjee said in a note to clients that Juniper's lack of exposure to artificial intelligence is one reason that it may lag behind its competitors in the networking space. JPMorgan cut its price target on Juniper to $29 per share from $32. The stock was trading just above $26 per share on Tuesday.

— Jesse Pound

Goldman Sachs' chief U.S. equity strategist David Kostin does not expect the Israel-Hamas conflict will have a huge impact on markets.

"It's a tragedy from a human point of view," Kostin told CNBC's "Squawk on the Street" on Tuesday. "But the idea fundamentally, we'll be getting earnings for the last three months, which is obviously backward looking. And the prospects looking forward are probably more domestically facing issues that are sort of pertinent to a lot of portfolio managers."

"So less likely to have a big impact on a sustainable basis," Kostin said.

Still, the strategist expects other risk factors will continue to weigh on stocks, citing higher yields and oil prices that could impede multiple expansion. He expects the S&P 500 will end 2023 around the 4,300 level, which is a little lower than where the broader index was last trading at about 4,380. He added cash is attractive.

However, he does not anticipate a recession on the horizon.

— Sarah Min

Some travel-related stocks bounced back on Tuesday after selling off during the previous session amid a spike in oil prices and as the conflict unfolded between Israel and designated terrorist group Hamas.

Shares of United Airlines, Delta Air Lines and American Airlines gained at least 3%. The stocks sold off by more than 4% each during Monday's session amid a slew of flight cancelations coming in an out of the country. JetBlue Airways popped 3.6%, while Southwest Airlines added more than 2%.

Cruise stocks Carnival and Royal Caribbean rose 3.1% and 2.7%, respectively. Hotel stocks Marriott and Hilton gained about 3% each.

— Samantha Subin

Check out the companies making headlines in midday trading.

Skechers — The shoe company gained 2.6% after UBS reiterated its buy rating on shares. UBS said Skechers' brand and products "continue to resonate with global customers."

Palantir Technologies — Shares of Palantir Technologies gained nearly 2% after the data analytics and software company won a $250 million contract with the U.S. Army, working to develop artificial intelligence and machine-learning capabilities through 2026.

PepsiCo — The beverage giant gained 2.2% after posting a third-quarter earnings beat on Tuesday. The company reported an adjusted $2.25 per share on $23.45 billion in revenue, while analysts polled by LSEG forecast earnings of $2.15 per share and revenue of $23.39 billion.

The full list can be found here.

— Hakyung Kim

Jefferies cut its price target on shares of Tesla, citing uncertain growth and margin concerns.

The firm retained its hold rating and trimmed its price target to $250 a share, reflecting about 4% downside from Monday's close. Shares of Tesla were up 2.5% in early afternoon trading.

Read more on the call from Jefferies here.

— Samantha Subin

As investors bid up bond prices on Tuesday in apparent flight to safety, there was also solid buying in riskier stock funds.

The Invesco Solar ETF (TAN), which has dropped more than 30% this year, rose 5.5%, on the day. Cathie Wood's Ark Innovation ETF (ARKK) jumped 2.8%.

The funds could actually be benefitting from the lower bond yields, as higher yields typically hurt growth stocks.

— Jesse Pound

The consumer outlook for where inflation is headed worsened slightly in September, according to a New York Federal Reserve survey released Tuesday.

Expectations for inflation a year from now increased to 3.7%, up 0.1 percentage point from August, the survey showed. On a three-year basis, the outlook rose to 3%, up 0.2 percentage point. That came even though the outlook for gas, medical care and rent all declined.

Also in the survey, the expectation for the cost of education increase decelerated, down to 5.8% from 8.2%, the biggest one-month decline in the survey's history.

—Jeff Cox

Contrary to investor concerns, a rebranding of Electronic Arts' FIFA video games makes the case for an attractive buying opportunity, according to Bank of America. The firm upgraded shares to a buy rating.

"Based on our analysis of SPORTS FC 24′s early launch stats as well as pricing, we believe investor fear over SPORTS FC's franchise transition is overblown, and we view EA's current valuation discount vs game publisher peers as a particularly attractive point of entry," wrote analyst Omar Dessouky.

The stock gained 3.2% on Tuesday. CNBC Pro subscribers can read the full story here.

— Lisa Kailai Han

The Nasdaq 100 crossed above the 50-day moving average level of 15,082.36 Tuesday morning, marking the first time it traded above the level on an intraday basis since Sep. 15. It has not closed above the 50-day moving average since Sep. 14.

Shares of Tesla, Amazon, PepsiCo and Nvidia are higher as of Monday morning and are having the most positive point impact on the overall index.

— Hakyung Kim, Gina Francolla

Weaker growth and disappointing beats in earnings for the third quarter are already reflected in markets, according to Maximilian Uleer, Deutsche Bank's head of European equity and cross asset strategy.

"While a mild recession in the US is still our base case for H1 next year, US growth has continued to surprise to the upside. A mild recession is widely anticipated and would most likely have a limited impact on markets," Uleer wrote in a Tuesday note.

Uleer said prefers equities over credit. The strategist anticipates rates to come down and correlations between government bonds with high rates and equities to turn negative.

To be sure, he noted that a potential rise in oil prices from the Israel-Hamas war could pose a risk to his disinflation scenario.

— Hakyung Kim

Major companies, from big-name banks to fast-food chains, are posting their third-quarter earnings this week. Investors are looking to these reports for further insight about companies' profits and how consumer spending is faring amid high inflation and potentially higher-for-longer interest rates.

Here are some names to watch out for this week:

• Tuesday: PepsiCo (which reported an earnings beat in premarket trading), Neogen Corp
• Wednesday: Loop Industries, Wipro Limited
• Thursday: Delta Air Lines, Infosys, Domino's Pizza, Fastenal, Walgreens Boots Alliance
• Friday: JPMorgan Chase & Co, PNC Financial Services, Citigroup, BlackRock, Wells Fargo, UnitedHealth Group

— Pia Singh

Stocks opened in the green on Tuesday.

• The S&P 500 was up 0.1%, or 4.5 points.
• The Dow Jones Industrial Complex gained 0.15%, or 50 points.
• The tech-heavy Nasdaq inched higher by 0.1%, or 16 points.

— Pia Singh

Investors with Bank of America were buying stocks last week even as broad market indexes declined, strategist Jill Carey Hall said in a note to clients Tuesday.

"Last week (S&P 500 -3.3%), clients were net buyers of US equities ($3.1B) for a 10th straight week (largest inflows since late Aug.). Inflows were mostly in ETFs though clients were also net buyers of single stocks," the note said.

Overall, seven of 11 equity sectors saw inflows last week, with utilities being the most heavily sold group, according to Bank of America.

"Cyclicals have seen more positive flows than defensive sectors since early Aug. We became more positive on cyclicals this spring, and our sector views have a cyclical tilt," the note said.

— Jesse Pound

Food and beverage stocks have been under pressure amid concerns that new weight loss medications will chip away at the market potential for these companies. PepsiCo shares are no different. The stock is down more than 10% since the start of the year, but it is up nearly 2% in premarket trading after raising its earnings forecast.

Chief Financial Officer Hugh Johnston told CNBC's "Squawk Box" that the maker of Pepsi-Cola and Tostitos tortilla chips will have time to adapt its product portfolio to changing consumer habits. Right now, the trend is having "zero" impact, he said.

"I think to the degree that this gets adopted, it will likely get adopted pretty slowly over time," Johnston said, saying that people will want to snack in some form or another. "If they want more protein, if they want more carbohydrates, this is the stuff that we know how to do very, very well."

— Christina Cheddar Berk, Tom Rotunno

Check out some of the companies making headlines in premarket trading.

Palantir Technologies — Shares of the data analytics company added 2.3% on news that the U.S. Army awarded the company a $250 million contract to test and develop artificial intelligence and machine learning.

Unity Software — The game engine stock surged nearly 6% after the company said CEO John Riccitiello would retire. Unity added that James M. Whitehurst would assume the interim chief role.

Rivian Automotive — Shares of the electric truck company rose 3% in premarket trading after UBS upgraded Rivian to buy from neutral. The investment firm said Rivian's fundamentals are improving and that the stock has upside after a recent $1.5 billion capital raise sparked a sell-off.

— Brian Evans

PepsiCo climbed more than 1% after the beverage giant reported earnings and revenue for the third quarter that beat analyst expectations. The company also raised its full-year earnings outlook.

— Fred Imbert

Fundstrat technical strategist Mark Newton noted that the lows in the S&P 500 are likely in at this point.

"US Equity markets look to be bottoming in the historic 'bear-market killer' month of October following oversold conditions during a time of seasonal tailwinds and bearish sentiment," Newton wrote overnight. "The effect of the attack on Israel resulting in yields rolling over looks important and Equities are responding to this more than the perceived Israeli retaliation."

"While some might see this as 'jumping the gun,' I do feel like there's a good likelihood that Equity market lows could be in place after the constructive bounce in recent days," he added.

— Fred Imbert

European stocks were sharply higher Tuesday morning, mirroring strong global gains, with the benchmark Stoxx 600 index up 1.2% at 9:13 a.m. London time.

All sectors were in the green, and some of the top climbers are those that suffered on Monday, including travel and leisure.

Germany's DAX rose 1.5%, while the U.K.'s FTSE 100 and France's CAC 40 both posted gains of around 1.3%.

— Jenni Reid

The iShares U.S. Aerospace & Defense ETF (ITA) notched its biggest gain since Nov., 9 2020 as the war between Israel and Hamas lifted defense stocks.

The ETF added 4.45% on Monday, driven by Northrop Grumman and Kratos Defense. Both of those stocks added more than 11%. It was Northrop's best day since March 2020.

L3Harris Technologies and Huntington Ingalls both advanced more than 9%, as well.

Kratos' gains also contributed to the Russell 2000's 0.6% rise on Monday. The small-cap benchmark climbed for the fourth consecutive session, propelled by National Western Life, up nearly 17%, and WW International, up 13%.

-Darla Mercado, Gina Francolla

Military shocks on their own have tended to be short-lived in the market, according to Sam Stovall, chief investment strategist at CFRA Research.

"Typically, the stock market initially reacted negatively to the uncertainty by declining in the first day and month after the event, but then recovered and advanced 60 and 90 days later," Stovall said.

How oil prices move in the coming days could decide if the Israel-Hamas war becomes a more protracted headwind for the market, according to the strategist.

"Even though oil prices spiked by 4.3% on the first trading day after the attack, the U.S. dollar weakened and share prices rose, implying that traders think this military shock will also likely not trigger a new bear market," Stovall added.

— Hakyung Kim

It's time to buy bonds as U.S. Treasury yields hit multiyear highs, according to Emily Roland, co-chief investment strategist at John Hancock Investment Management.

"I've been doing this job for about a decade now. This is actually the first time that we've been overweight bonds in portfolios. It takes a lot for us to love bonds," Roland said Monday on CNBC's "Closing Bell."

The 10-year U.S. Treasury yield last week reached its highest level since 2007. However, Roland expects investors should secure higher yields as the Federal Reserve nears the end of its rate hiking campaign.

"We all know that equities are a much more powerful compounder of wealth over time. So, we'll probably go back to an overweight to stocks once we see this downshift in bond yields play out, which we certainly expect as economic contraction unfolds," Roland said.

— Sarah Min

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

Futures tied to the Dow Jones Industrial Average dipped 4 points, or 0.01%.

S&P 500 also ticked down 0.01%, while Nasdaq 100 futures inched up 0.03%.

— Hakyung Kim