Trader Gordon Charlop works on the floor of the New York Stock Exchange, Tuesday, July 24, 2018. Stocks are opening broadly higher on Wall Street as investors were pleased to see strong earnings reports from a number of U.S. companies. (AP Photo/Richard Drew)

Tech companies lead US stocks higher on strong earnings

U.S. stocks moved broadly higher Tuesday as investors welcomed strong quarterly earnings reports from Google parent Alphabet, drugmaker Biogen and other companies. Technology and health care stocks accounted for much of the market’s gains. Energy companies rose along with the price of crude oil. Utilities and other safe-play, high-dividend stocks lagged the market.

KEEPING SCORE: The S&P 500 index rose 16 points, or 0.6 percent, to 2,823 as of noon Eastern Time. The Dow Jones Industrial Average gained 195 points, or 0.8 percent, to 25,239. The Nasdaq composite climbed 37 points, or 0.5 percent, to 7,878. The Russell 2000 index of smaller-company stocks reversed an early gain, giving up 5 points, or 0.4 percent, to 1,692. The S&P 500, the market’s benchmark index, is on a three-week winning streak.

THE QUOTE: “Today we’re having a really good pop on some very positive earnings,” said Jeff Kravetz, regional investment strategist at U.S. Bank Private Wealth Management.

EARNINGS ON DECK: This is the busiest week for the second-quarter earnings season, with roughly a third of companies in the S&P 500 scheduled to report, including Amazon, Facebook, Boeing and Ford Motor. Of the 17.4 percent of the companies in the S&P 500 that had issued quarterly results as of Monday, some 71 percent reported earnings and revenue that beat analysts’ forecasts, according to S&P Global Market Intelligence. That’s reinforced the underlying perception in the financial markets that the U.S. economy is performing strongly and that the Federal Reserve will raise interest rates next month.

Most Read Business Stories

Unlimited Digital Access. $1 for 4 weeks.

AGOG OVER GOOGLE: Google parent Alphabet gained 4.3 percent to $1,262.81 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 vaulted 8.8 percent to $45.11 after the motorcycle manufacturer’s latest quarterly earnings came in well ahead of what analysts were expecting. The company also said it’s planning strategic changes as tariffs affect its business.

GOOD MEDICINE: Biogen added 4.6 percent to $374.44 after the drugmaker posted strong quarterly results and raised its forecast for the year.

SOLID QUARTER: Eli Lilly & Co. rose 2.2 percent to $90.86 after the drug company’s quarterly results beat Wall Street estimates. The company also said it will spin off its animal health business.

SPIN CYCLE: Whirlpool was the biggest decliner in the S&P 500, plunging 13.9 percent to $129.69 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 were little changed. The yield on the 10-year Treasury held steady at 2.96 percent.

OIL: Benchmark U.S. crude climbed $1.10, or 1.6 percent, to $68.99 per barrel in New York. Brent crude, used to price international oils, gained 75 cents, or 1 percent, to $73.81 per barrel in London.

The pickup in oil prices helped lift energy sector stocks. Pioneer Natural Resources added 3.4 percent to $187.47.

CURRENCIES: The dollar fell to 111.19 yen from 111.48 yen on Monday. The euro strengthened to $1.1695 from $1.1689.

MARKETS OVERSEAS: In Europe, Germany’s DAX rose 1.1 percent and the CAC 40 in France added 1.1 percent. The FTSE 100 index of leading British shares gained 0.8 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.

Leave a Reply

Your email address will not be published. Required fields are marked *