Dow Hikes As Earnings Season Kicks Off

By Baystreet Market Updates

Stocks traded higher on Tuesday as the latest corporate earnings season got underway.

The Dow Jones Industrials leaped 153.24 points by noon at 24,929.83, as DowDuPont and Procter & Gamble outperformed.

The S&P 500 gained 8.94 points to 2,793.11, with energy rising 0.8%.

The NASDAQ hiked 67.81 points to 7,756.20

Earnings for the first calendar quarter rose 24% on a year-over-year basis. Wall Street is expecting similar results for calendar second quarter. Analysts expect S&P 500 second-quarter earnings to have grown by 20%

More than 20 companies in the S&P 500 have already released their quarterly results, including PepsiCo. The soft drink and snacks maker posted better-than-expected earnings, sending its shares higher by more than 4%. PepsiCo also said it expects “substantially higher” earnings growth for fiscal fourth quarter.

Pepsi is not the only company to have beaten expectations thus far. One analyst said in a note Tuesday that 86% of the companies that have already reported exceeded their quarterly earnings expectations, posting 24.1% year-over-year growth.

Citigroup, J.P. Morgan Chase, Wells Fargo and Delta Air Lines are all scheduled to report earnings later this week.

Tesla shares rose 1.8% after Bloomberg News reported the company is planning to build a massive plant in China. The report says the plant will have the capacity to build 500,000 vehicles per year.

Prices for the benchmark for the 10-year U.S.Treasury faded, raising yields to 2.87% from Monday 2.86%.

Oil prices dipped six cents to $73.79U.S. a barrel.

Gold prices lost $3.20 to $1,256.40U.S. an ounce.

This article provided by NewsEdge.