Stock market today: Stabilizing bond yields, big corporate profits, push Wall Street higher early
Stocks are markedly higher on Wall Street as pressure from the bond market eases, at least for the moment, and a slew of big U.S. corporations put up big quarterly numbers
Stocks are markedly higher on Wall Street as pressure from the bond market eases, at least for the moment, and a slew of big 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 Tuesday.
Bond yields settled back after the 10-year briefly crossed over 5% early Monday, continuing to put pressure on equities.
Treasury yields can dictate how much investors pay for everything from stocks to corporate bonds to cryptocurrencies. Higher yields also make it more expensive for nearly everyone to borrow money, which puts the brakes on economic growth and adds stress to the entire financial system.
The yield on the 10-year Treasury was at 4.86% early Tuesday, up a tick from 4.85% late Monday. It reached as high as 5.02% Monday before retreating.
Lower bond yields tend to benefit companies promising big growth because it's easier to borrow. That particularly helpful in recent years to technology and other high-growth stocks.
Industrial stocks, those with more steady growth patterns, have done well in that environment.
General Electric is up nearly 5% Tuesday 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.
General Motors rose 1.2% after it posted net income of more than $3 billion from July through September. That's down 7% from the same period last year due to lost production from the autoworkers strike. Company executives said the strike is expected to
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