Stocks were markedly higher on Wall Street this morning, according to the Associated Press, as pressure from the bond market eases, at least for the moment, and a slew of U.S. corporations put up big quarterly numbers. Futures for the S&P 500 rose 0.6% and the Dow Jones Industrial Average gained 0.5% before the bell today.
Bond yields settled back after the 10-year briefly crossed over 5% early Monday, continuing to put pressure on equities. The yield on the 10-year Treasury was at 4.86% early Tuesday, up a tick from 4.85% late Monday.
Lower bond yields tend to benefit companies promising big growth with easier borrowing. It’s been particularly helpful in recent years to technology and other high-growth stocks. Industrial stocks have done well in that environment.
General Electric was up nearly 5% today after easily beating Wall Street profit forecasts. 3M rose 4%, and Sherwin Williams gained 3% before the bell. Both companies also topped analysts’ profit targets.
Coca-Cola jumped 2.4% before the bell after it raised its full-year revenue forecast today, following a stronger-than-expected third quarter.
One wild card for inflation has been the price of oil, which has bounced in recent weeks amid worries about potential disruptions to supplies due to the latest Hamas-Israel war.
A barrel of benchmark U.S. crude oil added 12 cents to $85.61 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, rose 14 cents to $89.97 per barrel.
Economic updates this week will include a Friday report on how much U.S. households are spending.
