US equity indexes traded mixed after yields on government bonds retreated following sharp recent gains and Tesla (TSLA) rallied after reporting Q3 results overnight.

The S&P 500 rose 0.2% to 5,807.8, with the Dow Jones Industrial Average down 0.4% to 42,363.5 and the Nasdaq Composite 0.6% higher at 18,393.3. Consumer discretionary was the standout gainer, up 3.1%, and the materials sector was down 1.4% intraday.

Tesla's (TSLA) Q3 results exceeded estimates driven by "stronger" automotive gross margins, lower operating costs, and a "positive contribution" from full self-driving, BofA said in a note. Shares soared 20% intraday, among the biggest gainers on the S&P 500 and the Nasdaq.

The top performer on the S&P 500 was Molina Healthcare (MOH), trading up 21% intraday after reporting Q3 adjusted earnings and revenue that beat market expectations.

US Treasury yields slumped intraday, with the 10-year yield down 5.8 basis points to 4.18% and the two-year rate slid 3.7 basis points to 4.05%. Yields are heading for a higher sequential close this week amid concern that the fiscally expansionary policies laid out by the US presidential election candidates would undermine the Federal Reserve's efforts to ease inflation back to its 2% target. That could result in the Fed keeping interest rates higher for longer than investors anticipated.

Gold rose 0.7% to $2,748.60 an ounce while silver slipped less than 0.1% to $33.83. Both precious metals are trading close to their record highs.

Meanwhile, in economic news, the October flash reading of manufacturing conditions from S&P Global rose to a two-month high of 47.8 in October from 47.3 in September, compared with 47.5 expected in a survey compiled by Bloomberg.

The composite reading increased to 54.3 in October from 54.0 in the previous month, also a two-month high.

US initial jobless claims fell to 227,000 in the week ended Oct. 19 from an upwardly revised 242,000 in the previous week.

US new-home sales increased to a 738,000 annual rate in September from a downwardly revised 709,000 rate in August, above the 720,000 rate expected in a survey compiled by Bloomberg. Home sales were up 6.3% from September 2023.

West Texas Intermediate crude oil declined 1% to $70.09 a barrel.

Israel is continuing its wars against Iran-backed militant groups in Gaza and Lebanon, the Guardian reported. Turkey responded to an apparent terror attack against a defense contractor it blamed on Kurdish militants by launching retaliatory airstrikes against targets in Iraq and Syria, the news report said.

Crude oil traders are also remaining cautious as the US election on Nov. 5 approaches, with polls showing Kamala Harris and Donald Trump are running neck-to-neck.