By Yasin Ebrahim

Investing.com – The S&P 500 eased from all-time highs Tuesday, as a Facebook-fueled  wobble in communication services kept gains in check, but signs the consumer is in good shape continued to underpin investor sentiment.

Following a previously record-setting high of 4,598.36 earlier, the stock rose 0.3%. This index gained 0.2% (63 points) and reached an intraday peak of 35.892.92. Nasdaq gained 0.2%.

Facebook (NASDAQ) plunged more than 4% following mixed third-quarter results. The social media company flagged an Apple privacy change as a deterrent to its ad-revenue growth.

Wall Street analysts looked down on Facebook by a number of people, some noting the negative impact that Facebook’s investment plan had on their margins.

Wedbush noted that, “Given all trends in the quarter” and the concerns surrounding iOS/ATT we think what is somewhat flying under the radar? The significant increase in total expenditures in 2022,” Wedbush wrote in a note. It had reduced its Facebook price target from $350.00 to $325.00.

This week is busy for tech companies, as Alphabet (NASDAQ) and Microsoft (NASDAQ] continue to announce quarter results.

The chip sector was supported by an increase in chip stocks (NASDAQ:), as Facebook plans to invest big in its metaverse division. This is likely to boost demand for chips.

Industries struggled to overcome losses from the slump Lockheed Martin A rise in can be offset United Parcel Service General Electric

Lockheed Martin (NYSE) fell more than 12% following Lockheed Martin’s guidance cut. This was in response to a quarter-end revenue shortfall that came below expectations.

United Parcel Service, NYSE:), reported an improvement in both its top- and bottom line. It also upgraded its outlook for margins. This is because the logistics firm was able to weather inflation by raising prices. Shares were up almost 7 percent.

General Electric (NYSE) saw a 2% increase in shares after it reported better-than expected earnings and cashflow. However, revenue was below Wall Street expectations.  

Recent quarterly results have shown that prices can be raised by companies to preserve margins. This has removed any doubts about strong demand. It also helps investors to look at supply-chain issues to increase their stock bullishness.

“Companies have cited margin issues, and supply chain disruptions … but so far management teams have been able to navigate these issues,” Aptus Capital Advisors portfolio manager David Wagner told Investing.com in an interview on Tuesday. The disruptions may be temporary but investors are focusing instead on strong demand. 

“Fear that Factors [including supply-chain disruptions] would potentially reduce the expected 2022 S&P 500 earnings have not come to fruition and that’s why we have markets at all-time highs,” Wagner added.

Another sign of strength for consumers is the increase in consumer confidence, which was the highest since June.

Pantheon Macroeconomics reported that October’s price rise was 113.8. That is higher than the expectations for 108.0. Its “fading of Delta fear” explains why the energy costs are outweighing any impact.