NEW YORK (AP) — Stocks rose in morning trading on Wall Street Tuesday as traders take in a heavy round of earnings reports from big U.S. companies.
The S&P 500 rose 0.9% as of 10:04 a.m. Eastern. The Dow Jones Industrial Average rose 155 points, or 0.5%, to 31,652 and the Nasdaq rose 1.6%. Smaller company stocks outpaced the broader market. The Russell 2000 jumped 1.7%.
Bond yields fell significantly. The yield on the 10-year Treasury, which impacts mortgage rates, slipped to 4.08% from 4.23% late Monday. The yield on the two-year Treasury, which tracks Federal Reserve action, fell to 4.41% from 4.50% late Monday.
U.S. crude oil prices rose 1%.
Investors are focused on the latest round of earnings reports from some big companies. General Motors rose 2.2% after delivering solid results. United Parcel Service rose 3% after the package delivery service beat Wall Street’s third-quarter earnings and revenue forecasts. Paint maker Sherwin-Williams jumped 3.3% after also reporting solid financial results.
Packaging maker Crown Holdings fell 19% after its latest earnings fell short of estimates.
Outside of earnings, barbecue grill maker Weber soared 33% after it said BDT Capital Partners is interested in buying the rest of the company.
The latest round of earnings reports are particularly important for investors looking for indications of inflation’s impact on various industries. Prices on everything from clothing to food remain at their highest levels in four decades, putting pressure on companies to raise prices and cut costs, while squeezing consumers.
The Federal Reserve and central banks around the world have been raising interest rates to tame inflation. That has investors concerned about the central bank going too far in trying to slow the economy and instead causing a recession. Investors are looking for any sign that the Fed might ease up on rate increases.
Overseas, London’s FTSE 100 fell 0.6% as Britain’s third prime minister this year, Rishi Sunak, officially took office as the U.K. deals with an economic crisis.
Germany’s DAX fell 0.8% following the release of a German Business Climate report that was better than expected but overall gloomy. The CAC in Paris rose 0.4%.
Elain Kurtenbach, Matt Ott and Joe McDonald contributed to this report.