Stocks are rising noticeably on Wall Street as bond market pressure eases, at least for the moment, and a number of large American corporations release big quarterly numbers.
S&P 500 futures rose 0.6% and the Dow Jones Industrial Average gained 0.5% before the bell on Tuesday.
Bond yields rebounded after the 10-year bond briefly topped 5% early Monday, continuing to put pressure on stocks.
Treasury yields can determine how much investors pay for everything from stocks to corporate bonds to cryptocurrencies. Higher yields also make it more expensive for almost everyone to borrow money, slowing economic growth and adding stress to the entire financial system.
The 10-year Treasury yield was at 4.86% early Tuesday, up slightly from 4.85% on Monday. It hit 5.02% on Monday before retreating.
Lower bond yields tend to benefit companies that promise high growth because they are easier to borrow. This has been particularly helpful in recent years for technology stocks and other high-growth stocks.
Industrial stocks, those with more stable growth patterns, have done well in that environment.
General Electric rose nearly 5% on Tuesday after easily beating Wall Street profit forecasts. 3M rose 4% and Sherwin Williams gained 3% before the bell rang. Both companies also beat analysts' earnings targets.
General Motors rose 1.2% after posting net income of more than $3 billion between July and September. That's down 7% from the same period last year due to lost production due to the auto workers strike. Company executives said the strike is expected to reduce pretax profits by $200 million a week.
Coca-Cola jumped 2.4% before the bell after it raised its full-year revenue forecast on Tuesday following a better-than-expected third quarter.
In Europe at midday, the French CAC 40 fell 0.6% and the German DAX fell 0.3%. Britain's FTSE 100 was effectively unchanged.
In Asian trading on Tuesday, Japan's benchmark Nikkei 225 added 0.2% to finish at 31,062.35. Sydney's S&P/ASX 200 rose 0.2% to 6,856.90. South Korea's Kospi rose 1.1% to 2,383.51.
Hong Kong's Hang Seng fell almost 1.1% to 16,991.53, while the Shanghai Composite rose 0.8% to 2,962.24. Taiwan's Taiex rose 0.4%.
Shanghai's benchmark index has been trading near its lowest levels in several years, as concerns about a slump in the property market and a slowdown in the broader economy have led investors to sell shares.
A wild card for inflation has been the price of oil, which has rebounded in recent weeks amid concerns about possible supply disruptions due to the latest war between Hamas and Israel.
Benchmark U.S. crude oil added 12 cents to $85.61 a barrel in electronic trading on the New York Mercantile Exchange. On Monday it fell $2.59 to settle at $85.49. Brent crude, the international standard, rose 14 cents to $89.97 a barrel. On Monday it fell $2.33 to $89.83 a barrel.
US oil had been above $93 last month, and has bounced up and down since then amid concerns that fighting in the Gaza Strip could lead to supply disruptions from Iran or other major countries. oil producers.
While concerns about higher Treasury yields and the war in Gaza weigh on markets, strong corporate earnings and the resilient U.S. economy have helped offset those pressures. This week, more than 30% of S&P 500 companies will report. They include Boeing, Ford, Microsoft and Amazon.
This week's economic updates will include a report on Friday on how much American households are spending and what kind of inflation they are feeling.
In currency trading, the US dollar slowly rose to 149.75 Japanese yen from 149.71 yen. The euro cost $1.0637, down from $1.0669.
On Monday, the S&P 500 fell 0.2% and the Dow Jones Industrial Average fell 0.6%.
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