U.S. stocks are on the rise on Tuesday as big companies begin to report their earnings. The S&P 500 is up 0.3% midday, the Dow Jones Industrial Average is up 0.2%, and the Nasdaq composite is 0.4% higher.
Several companies are announcing their spring results today, with Alphabet and Tesla set to report after the market closes. Expectations are high, with analysts predicting strong profit growth for S&P 500 companies.
GE Aerospace saw a 7.4% increase after beating profit forecasts for spring and raising its full-year earnings outlook. Danaher rose 7.1% and Sherwin-Williams climbed 5.1% after reporting better-than-expected profits.
Sherwin-Williams attributed its increased demand for paint to new residential customers, despite challenges posed by high interest rates. A report showed a slowdown in home sales due to record-high home prices.
Market expectations indicate a potential Federal Reserve interest rate cut in September to combat inflation. As a result, Treasury yields have decreased, benefiting smaller stocks like the Russell 2000, which rose 1%.
In the losing end, UPS tumbled 13.2% while Comcast dropped 3.9% after reporting lower-than-expected revenue. Internationally, Asian and European markets showed mixed results.
Chinese markets experienced declines, with Hong Kong falling by 0.9% and Shanghai by 1.6% after China’s central bank cut interest rates. Analysts found the cuts lackluster.
AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
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