U.S. stocks moved higher in early trading Tuesday on Wall Street as several major companies reported solid second quarter earnings.
In this Thursday, July 18, 2019, file photo trader Dennis Maguire works on the floor of the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EDT on Tuesday, July 23. (Photo: AP)
Corporate earnings are now in full swing after last week’s relatively light load of mixed results. Nearly 150 companies in the S&P 500 will report their financial results through Friday. Analysts are expecting this round of earnings to be weak.
JPMorgan Chase, Bank of America and several other banks gained ground as bond yields rose. Higher bond yields allow banks to charge more interest on loans.
Coca-Cola soared after beating Wall Street’s second quarter profit forecasts. The surprisingly good results helped lift other consumer product makers. Kraft Heinz rose 1.7% and Kellogg rose 1.8%
Stanley Black & Decker rose 6.6% after it reported second quarter profit well above analysts’ forecasts. The tool maker made one of the biggest gains in the industrial sector. General Electric rose 2.6% and United Technologies rose 1.8%.
Utilities lagged the market as investors moved away from defensive holdings and took on more risk.
KEEPING SCORE: The S&P 500 index rose 0.2% as of 10 a.m. Eastern time. The Dow Jones Industrial Average rose 72 points, or 0.3%, to 27,245. The Nasdaq composite rose 0.1%.
OVERSEAS: European stocks moved broadly higher, though London’s FTSE 100 was relatively flat after Boris Johnson was named as the new prime minister, a move that could increase the risks of a disorderly Brexit. Germany’s DAX soared 1.8% and France’s CAC 40 rose 1%.
STOCK POP: Coca-Cola rose 5% after the beverage company raised its revenue forecast for the year following a solid second quarter. The company reported 3% growth in sales of its namesake soft drinks and it has been expanding into energy drinks and coffee.
WELL PLAYED: Hasbro rose 6.1% after blowing away Wall Street’s second quarter profit forecasts. The toy maker reported growth for many of its classic games and toys, including the board game Monopoly and Play-Doh. It also reported growth for its digital game “Magic: The Gathering” and got some help from its partnership with Marvel on Avengers and Spiderman action figures.
QUALITY TOOLS: Stanley Black & Decker rose 5.4% after the tool maker beat Wall Street’s profit forecasts for the second quarter. The company reported increases in sales volumes and prices for its tools and storage products.
OIL: Crude oil prices remained mostly flat. Benchmark edged down 0.3%. Brent crude oil, the international standard, were flat. Energy prices have been volatile over the last few weeks as tensions between the U.S. and Iran intensify.