The New York Stock Exchange operates during normal business hours in the Financial District, Wednesday, Oct. 13, 2021, in the Manhattan borough of New York. Stocks are opening higher on Wall Street as company earnings reports get into high gear, pushing major indexes further into record heights. The S&P 500 was up 0.4% in the early going Tuesday, Oct. 26, 2021. (AP Photo/John Minchillo, file)
By Damian J. Troise and Alex Veiga
Stocks held on to modest gains on Wall Street Tuesday, pushing the S&P 500 and the Dow Jones Industrial Average further into record heights. The S&P 500 added 0.2% and the Dow edged up less than 0.1%. The Nasdaq also rose less than 0.1%. Solid earnings from several companies helped push stock prices higher. UPS jumped 6.9% after the package delivery service reported results that easily beat analysts’ forecasts. Facebook fell 3.9% following a weak sales forecast and increasing scrutiny over its corporate practices. The yield on the 10-year Treasury note fell to 1.61%.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
Stocks rose in afternoon trading on Wall Street Tuesday and pushed major indexes further into record heights as investors review mostly solid company earnings.
The S&P 500 index rose 0.3% as of 3:28 p.m. Eastern and is hovering just above the record high it set on Monday. The Dow Jones Industrial Average rose 86 points, or 0.3%, to 35,828 and is also just above its record high. The Nasdaq rose 0.1%.
Technology stocks did much of the heavy lifting for the broader market. Health care stocks and a mix of companies that rely on consumer spending for goods and services also made solid gains.
Communications stocks fell. Facebook shed 4.4% after giving investors a weak sales forecast. The company is also facing scrutiny over its seemingly lax regulation of harmful and misleading information on its platform.
Bond yields were mostly higher, though the yield on the 10-year Treasury slipped to 1.62% from 1.63% from late Monday.
Solid earnings reports helped lift several major companies. UPS jumped 7.5% as higher shipping rates helped the package delivery service easily beat analyst's third-quarter profit forecasts. Hasbro rose 3.7% after the maker of Transformers, My Little Pony and other toys reported solid financial results.
Stocks have been pushing broadly higher as companies turn in much stronger profit reports for the summer than analysts had expected.
“Right now, valuations are high and the market needs some reassurance from corporate earnings,” said Ernesto Ramos, chief investment officer in the U.S. for BMO Global Asset Management. “There are still plenty of risks out there, but the market is focusing on the good things right now.”
Investors received several encouraging economic updates on Tuesday. U.S. consumer confidence rose in October after three straight declines as the public’s anxiety about the delta variant of the coronavirus appear to have abated. New home sales jumped 14% in September to the fastest pace in six months as strong demand helped offset rising prices.
The broader market is also reacting well to signals that big spending plans in Washington and potential tax increases for companies will likely be diluted, Ramos said.
Wall Street is still concerned about how much of an impact supply chain problems will have on a wide range of industries. Many companies have already warned about higher costs cutting into operations.
Paint maker Sherwin-Williams rose 2% even though its latest results revealed that higher raw materials costs crimped its finances.
Microsoft and Google’s parent company, Alphabet, will report their own results after the closing bell Monday, along with Twitter. European markets were higher and Asian markets closed mixed.
Investors still have a busy week of corporate earnings ahead. Airplane maker Boeing and beverage company Coca-Cola will report their results on Wednesday.
General Motors and Ford will also release their results on Wednesday. The reports could help give investors a clearer picture of how the auto industry is dealing with supply chain problems, including a chip shortage that has been weighing on auto production.
Apple and Amazon will report on Thursday. The companies, along with Microsoft and Google, are the four biggest companies on Wall Street by market value and their stock movements have a huge effect on the S&P 500.
A rare magnum of Dom Pérignon Vintage 1961 champagne that was specially produced for the 1981 wedding of Prince Charles and Lady Diana has failed to sell during an auction. Danish auction house Bruun Rasmussen handled the bidding Thursday. The auction's house website lists the bottle as not sold. It was expected to fetch up to around $93,000. It is one of 12 bottles made to celebrate the royal wedding. Little was revealed about the seller. The auction house says the bids did not receive the desired minimum price.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
U.S. sports betting is booming as NFL and college football fuel massive activity. BetMGM CEO Adam Greenblatt breaks down trends, growth, and what’s next.
President Donald Trump says a deal struck by Netflix last week to buy Warner Bros. Discovery “could be a problem” because of the size of the combined market share. The Republican president says he will be involved in the decision about whether federal regulators should approve the deal. Trump commented Sunday when he was asked about the deal as he walked the red carpet at the Kennedy Center Honors. The $72 billion deal would bring together two of the biggest players in television and film and potentially reshape the entertainment industry.
Disney's changes to a program for disabled visitors are facing challenges in federal court and through a shareholder proposal. The Disability Access Service program, which allows disabled visitors to skip long lines, was overhauled last year. Disney now mostly limits the program to those with developmental disabilities like autism who have difficulty waiting in lines. The changes have sparked criticism from some disability advocates. A shareholder proposal submitted by disability advocates calls for an independent review of Disney's disability policies. Disney plans to block this proposal, claiming it's misleading. It's the latest struggle by Disney to accommodate disabled visitors while stopping past abuses by some theme park guests.
