Stocks close in on new highs

By Baystreet Market Updates

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 154.67 points to 25,656.85, as Caterpillar climbed more than 1%.

The S&P 500 picked up 10.45 points to 2,860.85, with energy and financials outperforming.

The NASDAQ tacked on 24.89 points to 7,883.97, as Facebook, Netflix and Alphabet all rose at least 1%.

Through Monday’s close, the S&P 500 was just 0.8% 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 4.2% away from reaching an all-time high.

Stocks’ move overseas comes as a stronger-than-expected earnings season has offset concerns over global trade. 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 and is scheduled to report earnings after the close. Disney shares rose 1.5%.

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 2.97% from Monday’s 2.95%. Treasury prices and yields move in opposite directions

Oil prices put back 44 cents to $69.45U.S. a barrel.

Gold prices gained $2.70 to $1,220.40U.S. an ounce.

This article provided by NewsEdge.