US stocks back to records as corporate earnings keep rising

Tuesday, July 25, 2017|8:07 a.m.

NEW YORK– U.S. stock indexes went back to their winning ways Tuesday, and the Standard & & Poor’s 500 index movinged towards a record after corporate earnings continued to come in better than analysts anticipated. McDonald’s and Caterpillar were amongst the big business reporting healthier-than-forecast revenues.

Higher costs for oil, metals and other products assisted to lift energy and raw-materials business, while tech stocks took a rare action backward after results for Seagate Technology and others in the industry fell short of expectations.

Treasury yields rose as the Federal Reserve starts a two-day conference on interest-rate policy.

KEEPING SCORE: The Requirement & & Poor’s 500 index rose 8 points, or 0.3 percent, to 2,478, since 10:45 a.m. Eastern time. If the gain holds, it would be the first for the index in 4 days and return it to an all-time high.

The Dow Jones industrial average included 106, or 0.5 percent, to 21,619. The Nasdaq composite slipped 5 points, or 0.1 percent, to 6,405.

EARTH MOVING: Caterpillar leapt $5.76, or 5.3 percent, to $113.95 after reporting much better results for the current quarter than experts expected. It likewise raised its forecast for profits and profit for the complete year, pointing out increased demand throughout a lot of its markets.

PILING HIGHER: McDonald’s increased $5.25, or 3.5 percent, to $157.10 after its profits and incomes for the current quarter topped Wall Street’s projection. The burger chain has actually been drawing in consumers with a brand-new line of premium of hamburgers and $1 sodas.

TECH STUMBLE: Technology stocks have been the year’s biggest stars up until now, as investors have actually been hungry for anything with the potential to grow quickly in a slow-growing worldwide economy.

However tech stocks in the S&P 500 dipped 0.2 percent after a number of reported outcomes that fell short of expectations.

Seagate Technology sank $6.26, or 15.7 percent, to $33.50 after the maker of hard disks and other electronic information storage reported weaker profits and revenues than experts had actually forecast.

MORE ENERGETIC: The cost of crude was on track to increase by more than 1 percent for a second straight day, and shares of oil producers and other energy companies benefited.

Energy stocks in the S&P 500 rose 1.8 percent, most amongst the 11 sectors that comprise the index. Devon Energy rose $1.25, or 3.9 percent, to $32.99, and Marathon Oil climbed 96 cents, or 3.4 percent, to $29.14.

Benchmark U.S. crude rose $1.01, or 2.2 percent, to $47.35 per barrel. Brent crude, the worldwide requirement, increased 94 cents, or 1.9 percent, to $49.76.

PRODUCTS: Metals prices also increased highly, which assisted to lift shares of mining business and other raw-material manufacturers.

Copper leapt 8 cents, or 3.1 percent, to $2.82 per pound, while silver rose 4 cents to $16.48 per ounce and gold slipped $2.50 to $1,251.80 per ounce.

Miner Freeport-McMoRan had the most significant gain amongst stocks in the S&P 500. It rose $1.70, or 13.1 percent, to $14.66. Newmont Mining had the second-biggest dive, up $2.53, or 7.5 percent, to $36.43.

YIELDS: The yield on the 10-year Treasury note rose to 2.30 percent from 2.26 percent late Monday. The two-year yield reached 1.37 percent from 1.36 percent, and the 30-year yield rose to 2.90 percent from 2.83 percent.

FINANCIAL STRENGTH: Banks and other companies in the monetary industry were strong following the rise in yields. Greater rate of interest can assist banks make bigger revenues through financing. Monetary stocks in the S&P 500 rose 1.2 percent.

FED MEETING: The Federal Reserve’s policymaking committee is beginning a two-day meeting, but investors expect to see couple of fireworks when it announces its choice on rate of interest Wednesday.

The reserve bank has already raised rates 3 times because December, and most financiers anticipate the next rate increase to come later this year or in 2018.

CURRENCIES: The euro increased to $1.1666 from $1.1645 late Monday. The dollar inched as much as 111.57 Japanese yen from 111.11 yen, and the British pound increased to $1.3046 from $1.3036.

MARKETS ABROAD: France’s CAC 40 climbed up 1 percent, Germany’s DAX gained 0.6 percent and the FTSE 100 in London increased 1 percent.

Japan’s Nikkei 225 index slipped 0.1 percent, South Korea’s Kospi index dipped 0.5 percent and the Han Seng in Hong Kong was practically flat.

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