The United States stock market is approaching its record highs on Tuesday as companies begin to report their earnings for the summer. This is reported by UNN with reference to AP News.
Details
The S&P 500 index rose 0.1% in the afternoon and is only 0.2% below its all-time high set earlier this month. As of 1:30 p.m. Eastern Time, the Dow Jones Industrial Average rose 282 points, or 0.6%, and the Nasdaq Composite fell 0.1%.
General Motors shares rose 16.3% after reporting better-than-expected quarterly results and raising its outlook for some annual financial targets. CEO Mary Barra said the company is moving quickly to reduce losses in 2026 and beyond for its electric vehicle business, as it is "now clear" that EV adoption will be lower than planned.
Shares of RTX, an aerospace and defense company, and Danaher, a life sciences and diagnostics company, rose nearly 8% after reporting better-than-expected earnings for the last quarter. Coca-Cola shares rose 3.8%, also exceeding Wall Street's earnings expectations.
Warner Bros. Discovery shares rose 10.8% after the company said it is now considering options other than the previously announced spin-off of Discovery Global from Warner Bros., which could be more profitable for shareholders. The company said it made the move after hearing from "several parties" interested in either the entire company or Warner Bros.
The market was held in check by declines in some large technology companies that lost momentum after their own gains. Google parent Alphabet's 1.8% drop from its all-time high was one of the biggest drags on the S&P 500. Broadcom fell 2.1%.
Other big recent winners in financial markets also paused. The price of gold fell 5.4% from its latest record, dropping to $4,125.80 per ounce. It is still up 56.2% for the year.
Companies are under pressure to show that their profits are growing after the S&P 500's rapid 35% rise from its April low. This is one way to justify the high prices of their shares amid criticism that they are overvalued.
Corporate earnings reports have also gained importance as they provide detailed information about the strong state of the US economy at a time when a US government shutdown has delayed important economic updates. This complicates the Federal Reserve's job as it tries to decide what is a bigger problem for the economy – high inflation or a slowing labor market.
Despite the government shutdown, the Commerce Department will release its consumer price report on Friday, which could help the Fed in shaping interest rate policy. This is the first release of government data since the shutdown began on October 1.
In overseas stock markets, indexes rose in most of Europe and Asia.
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Japan's Nikkei 225 index added 0.3% and approached the 50,000 level as conservative lawmaker Sanae Takaichi became the country's prime minister. Investors expect her to push for lower interest rates and other policy actions that could help the market.
Indexes rose 1.4% in Shanghai and 0.7% in Hong Kong amid expectations that President Donald Trump will meet with Chinese President Xi Jinping later this month during a regional summit. This raised hopes for an easing of trade tensions between the world's largest economies.
In the bond market, the yield on 10-year Treasury notes fell to 3.96% from 4.00% late Monday.
Addition
Gold prices rose to new record highs in Asian trading, marking the fourth consecutive session, as rising expectations of a Federal Reserve interest rate cut and renewed trade tensions between the US and China boosted demand for the safe-haven metal.