Stocks erase losses as rates retreat from highs

By Baystreet Market Updates

Stocks rose on Tuesday, erasing earlier losses, as U.S. interest rates retreated from fresh multi-year highs.

The Dow Jones Industrial Average regained 33.16 points to pause for lunch at 26,519.94

The S&P 500 gained 7.32 to 2,892, led by gains in consumer discretionary and tech.

The NASDAQ gained 49.03 points to 7,784.98, as Facebook and Amazon both traded higher.

Shares of Facebook and Amazon both gained more than 1%, while Netflix gained 2.7%. Apple’s stock also gained 1.2%.

The recent rise in interest rates comes as investors brace for the upcoming earnings season, which starts later this week. J.P. Morgan Chase, Wells Fargo, Citigroup and Walgreens Boots Alliance are among the companies set to report.

Overall, analysts expect corporate earnings to have grown by about 19% in the third quarter. Earnings grew by 25% in the first two quarters of the year.

However, PPG Industries, an industrial coatings manufacturer, fell more than 7% after updating its third-quarter guidance. The company now expects adjusted earnings per share to range between $1.41 and $1.45, well below an estimate of $1.59.

The so-called core PCE price index, which is the Federal Reserve’s preferred measure of inflation, remained at 2% in August. A figure of 2% is the Fed’s inflation target.

The benchmark 10-year Treasury note yield rose to its highest level since 2011, before slipping. The longer-term 30-year bond yield also reached its highest mark since 2014.

Prices for the benchmark for the 10-year U.S.Treasury gained a bit of ground, lowering yields to 3.22% from Friday’s 3.23%. Treasury prices and yields move in opposite directions.

Oil prices gathered 62 cents at $74.91U.S. a barrel.

Gold prices gained $4.70 to $1,193.30U.S. an ounce.

This article provided by NewsEdge.