Traders work on the floor of the New York Stock Exchange (NYSE) on July 26, 2023.
Brendan McDermid | Portal
Stocks rose on Tuesday as investors focused on a new batch of earnings reports and traders monitored recent moves in Treasury yields.
The Dow Jones Industrial Average gained 274 points, or 0.8%. The S&P 500 rose 0.7% along with the Nasdaq Composite.
Coca-Cola reported earnings and revenue that beat estimates, sending shares up more than 3%. Spotify, meanwhile, rose 9% after the audio streaming giant reported third-quarter results that beat expectations.
However, shares of General Motors fell more than 1% after the company withdrew its full-year outlook due to rising costs stemming from the United Auto Workers union strikes.
Alphabet and Microsoft are among the companies reporting results after the market closes.
About 150 S&P 500 companies are expected to report this week, the latest leg of an earnings season that has so far been better than Wall Street expected. According to FactSet, about 23% of S&P 500 companies have already reported earnings, and 77% of them have reported earnings that beat analysts’ expectations.
Wall Street had a mixed session as investors continued to pay attention to the 10-year U.S. Treasury yield, which rose above 5 percent before falling below that level. Rising yields in recent weeks have raised concerns about the state of the overall economy and put pressure on the stock market. On Tuesday, the key interest rate rose about 1 basis point to 4.848%.
“With inflation persisting and interest rates higher over the longer term, stocks are trending sideways to pullback mode,” said Terry Sandven, chief equity strategist at US Bank Asset Management. At the same time, “the prospects of a recession are on the horizon.”