New York, Oct. 25 (BUS): Stocks rose in morning trading on Wall Street on Tuesday as traders took a big round of earnings reports from major US companies, according to the Associated Press.
The S&P 500 was up 1.1% as of 11:12 AM ET. The Dow Jones Industrial Average rose 210 points, or 0.7%, to 31,710 and the Nasdaq rose 1.7%. Stocks of smaller companies outperformed the broader market. Russell 2000 jumped 2.5%.
Bond yields fell dramatically. The yield on the 10-year Treasury, which affects mortgage rates, fell to 4.08% from 4.23% late Monday. The yield on the two-year Treasury, which tracks the Federal Reserve’s work, fell to 4.43% from 4.50% late Monday.
US crude oil prices rose 0.9%. Investors are focusing on the latest round of earnings reports from some of the major companies.
GeneralMotors stock rose 3.7% after posting solid results. United Parcel Service rose 1.9% after the parcel delivery service beat Wall Street’s third-quarter earnings and revenue expectations. Paint maker Sherwin-Williams jumped 4.5% after it reported strong financial results.
Crown Packaging Holdings Inc plunged 19% after its recent earnings missed estimates. The General Electric industrial conglomerate was down 2% after reporting weak third-quarter earnings.
Several other big names are on board to report their earnings throughout the week. Google’s parent company announced its results later Tuesday, along with Microsoft and Visa.
The latest round of earnings reports is especially important for investors looking for indications of the impact of inflation on various industries.
Prices for everything from clothing to food remain at four-decade highs, putting pressure on companies to raise prices and cut costs, while putting pressure on consumers.
The Federal Reserve and central banks around the world have raised interest rates to tame inflation. This has investors worried about the central bank going too far in trying to slow the economy and instead causing a recession.
The Federal Reserve is expected to raise interest rates by another three-quarters of a percentage point at its next meeting in November.
Markets were looking for any indication that the central bank is ready to ease interest rate increases. This includes data that the economy is slowing.
A gauge of housing prices released on Tuesday showed that the housing market continues to cool. The S&P CoreLogic Case-Shiller Index, which measures prices in major cities, fell more than expected in August.
The US economy is already slowing and has actually contracted during the first half of the year. The government will release its third-quarter GDP report on Thursday.
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