US equity markets opened on a mixed note Tuesday as investors digested a wave of third-quarter bank earnings and a renewed selloff in semiconductor stocks. The Dow Jones Industrial Average rose 317 points, while the S&P 500 slipped 0.06% and the Nasdaq Composite fell 0.38%.
Citigroup was among the notable outperformers, reporting third-quarter revenue of $23.85 billion, above analyst estimates of about $23.72 billion. Net income climbed 40% year over year to $5.25 billion, or $2.85 per share, compared with $3.8 billion, or $1.86 per share, a year earlier. The bank said it delivered its highest third-quarter revenue in a decade, with return on tangible common equity of 11.5% for the quarter and 12.6% for the year to date. Services revenue rose 15% to $6.6 billion, wealth revenue grew 15% to $3.3 billion, and markets revenue increased 6% to $6.1 billion. Investment banking revenue gained 9% year over year to $1.35 billion, although it fell 13% from the second quarter.
Other major banks showed diverging results. Goldman Sachs shares rose about 1.44% after beating expectations, while JPMorgan Chase gained around 1.3% despite missing revenue and earnings estimates, as it raised net interest income guidance. Wells Fargo slipped 0.5% after mixed results, and Johnson & Johnson fell 2.2% despite an earnings beat.
Semiconductor and memory stocks extended losses after Chinese chipmaker ChangXin Memory Technologies announced plans to release a more powerful chip by the end of the year. Nvidia fell 1%, AMD dropped 3.7%, Marvell Technology lost 4.7%, and Micron Technology declined 5.5%. Western Digital, Seagate Technology and SanDisk fell around 6%, while SK Hynix declined about 5%. South Korea's Kospi index fell 5.46% to its lowest level since July 31.
Investors also monitored Treasury yields, oil prices and Federal Reserve policy signals. Recent weaker-than-expected US job growth and a smaller inflation increase have reduced expectations for imminent rate hikes. September consumer and producer price data, retail sales figures, existing home sales and commentary from regional Fed presidents Thomas Barkin and Susan Collins are due later this week.
