Tech companies lead US stocks higher on strong earnings
New York – U.S. stocks moved broadly higher in early trading Tuesday as investors welcomed strong quarterly earnings reports from Google parent Alphabet, Biogen and other companies. Technology and health care stocks accounted for much of the market’s gains. Utilities and other safe-play stocks lagged the market as bond yields rose.
Keeping score: The S&P 500 index rose 19 points, or 0.7 percent, to 2,826 as of 10:05 a.m. Eastern Time. The Dow Jones Industrial Average gained 140 points, or 0.6 percent, to 25,185. The Nasdaq composite climbed 69 points, or 0.9 percent, to 7,911. The Russell 2000 index of smaller-company stocks picked up 6 points, or 0.4 percent, to 1,704.
Agog over Google: Google parent Alphabet gained 4.1 percent to $1,260.18 after the company reported second-quarter earnings late Monday that topped Wall Street’s expectations even as it booked a $5.1 billion charge to cover a fine levied by European regulators. Alphabet led the market-leading rally in technology stocks.
Revved up: Harley-Davidson climbed 5.8 percent to $43.85 after its latest quarterly earnings came in well ahead of what analysts were expecting.
Good medicine: Biogen added 4.6 percent to $374.55 after the company posted strong quarterly results and raised its forecast for the year.
Spin cycle: Whirlpool sank 13.5 percent after the appliance maker’s latest results came up short of forecasts. The company is being hurt by tariffs on imported aluminum and steel.
Bond yields: Bond prices fell. The yield on the 10-year Treasury rose to 2.97 percent from 2.96 percent late Monday.
Oil: Benchmark U.S. crude added 34 cents to $68.23 per barrel in New York. Brent crude, used to price international oils, gained 24 cents to $73.30 per barrel in London.
Currencies: The dollar fell to 111.05 yen from 111.48 yen on Monday. The euro strengthened to $1.1707 from $1.1689.
Markets overseas: In Europe, Germany’s DAX rose 1.4 percent and the CAC 40 in France added 1.2 percent. The FTSE 100 index of leading British shares gained 0.7 percent. Major indexes in Asia finished higher. Japan’s Nikkei 225 gained 0.5 percent, while South Korea’s Kospi added 0.5 percent. Hong Kong’s Hang Seng jumped 1.4 percent. Australia’s S&P-ASX 200 rose 0.6 percent.