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Stocks- Wall Street Rises as Investors Shrug Off Bond Yield Worry

Published 04/24/2018, 09:46 AM
© Reuters.  Wall Street opened higher on Tuesday.
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Investing.com - Wall Street was higher on Tuesday, despite rising bond yields, as investors look to corporate earnings releases.

The S&P 500 was up over 10 points or 0.41% to 2,681.22 as of 9:45 AM ET (13:45 GMT) while the Dow composite increased 96 points or 0.40% to 24,545.59 and tech heavy NASDAQ Composite rose 32 points or 0.46% to 7,161.55.

Investors have shrugged off worry over rising bond yields, with the 10-Year note reaching its highest level in four years, as inflation has added to expectations of continued rate hikes from the Federal Reserve.

Yields were higher on Tuesday, with the yield on the benchmark United States 10-Year Treasury note rising to 3.00%. The United States 2-Year note rose to 2.500, a level not seen since September 2008.

A higher than expected earnings season has bolstered investors confidence. Eight of 10 sectors in the S&P 500 reported a record level profit, according to FactSet.

Caterpillar (NYSE:CAT) was among the biggest gainers after the opening bell, rising 2.86% after its first quarter results beat expectations. Boeing (NYSE:BA) was up 1.91% while Verizon Communications Inc (NYSE:VZ) surged 2.15% after its earnings were higher than expected.

Elsewhere, Google (NASDAQ:GOOGL) was down 2.34% despite posting a higher than expected first quarter while Coca-Cola Company (NYSE:KO) fell 1.00%, also despite beating earnings expectations. Technology stocks were mixed, with Facebook (NASDAQ:FB) inching down 0.12% and Netflix (NASDAQ:NFLX) down 0.39%.

In Europe stocks were mixed. Germany’s DAX fell 28 points or 0.23% while in France the CAC 40 decreased nine points or 0.17% and in London, the FTSE 100 was up 12 points or 0.17%. Meanwhile the pan-European Euro Stoxx 50 fell eight points or 0.22% while Spain’s IBEX 35 slumped 45 points or 0.45%.

In commodities, gold futures rose 0.35% to $1,328.70 a troy ounce while crude oil futures increased 0.25% to $68.81 a barrel. The U.S. dollar index, which measures the greenback against a basket of six major currencies, fell 0.09% to 90.61.

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