Stocks rose on Tuesday as the S&P 500 moved closer to a record high set earlier this year, boosted by strong corporate earnings that offset worries around global trade.
The Dow Jones Industrial Average grew 126.73 points to 25,628.91, as Caterpillar climbed more than 2%.
The S&P 500 picked up 8.05 points to 2,858.45, with energy and industrials outperforming.
The NASDAQ tacked on 23.99 points to 7,883.66, as Amazon and Tesla rose
Through Tuesday’s close, the S&P 500 was just 0.5% away from reaching an all-time high of 2,872.87, set on Jan. 26. The NASDAQ was also within 1% of a record high, while the Dow was more than 3.5% away from reaching an all-time high.
In all, 80% of the S&P 500 companies that have reported quarterly results through Friday have posted better-than-expected earnings, on pace to be the highest beat rate since the metric was first tracked in 2008.
Through Friday, S&P 500 earnings are up 24% in the second quarter on a year-over-year basis. Some of the companies that have reported better-than-expected earnings include Apple and Amazon. Dow-component Disney reported weaker than-expected earnings after the close, sending its shares down 2%.
Shares of Tesla closed more than 10% higher after CEO Elon Musk said he was considering taking the company private.
Last week, China said it was ready to retaliate with tariffs on around $60 billion worth of U.S. goods, ranging from 5% to 25%; just days after the U.S. administration revealed that President Donald Trump had spoken with U.S. Trade Representative Robert Lighthizer and asked him to consider increasing the proposed levies on $200 billion worth of Chinese goods up to 25% from 10%.
Chinese state media claimed in editorials over recent days that the Asian nation and its counter-response to America has been “restrained” and “rational,” in light of the levies that have been threatened. China’s state media also said late Monday that they “will not surrender” to “U.S. trade blackmail.”
Prices for the benchmark for the 10-year U.S.Treasury dropped, raising yields to 2.98% from Monday’s 2.95%. Treasury prices and yields move in opposite directions
Oil prices were static at $69.01U.S. a barrel.
Gold prices gained 60 cents to $1,218.30U.S. an ounce.
This article provided by NewsEdge.