Stocks Lifted by Upbeat Earnings, Stable Commodity Prices

By Riva Gold and Kenan Machado Features Dow Jones Newswires

U.S. stock indexes climbed Tuesday, as a jump in shares of technology companies offset losses in the energy sector.

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The Dow Jones Industrial Average added 23 points, or 0.1%, to 21036 shortly after the opening bell. The S&P 500 rose 0.2% and Nasdaq Composite gained 0.5% after both indexes inched higher Monday to settle at record highs.

Major stock indexes have risen the past few weeks as stronger-than-expected corporate earnings have helped offset a steep decline in commodity prices. With more than 87% of S&P 500 firms having reported earnings, companies are on track to post their highest proportion of top- and bottom-line beats in 13 years, according to Bank of America Merrill Lynch.

"There is a strong economic backdrop and robust earnings: That environment is conducive to being invested [in stocks]," said Mouhammed Choukeir, chief investment officer at Kleinwort Hambros.

U.S. crude oil fell 0.8% to $46.05 a barrel on Tuesday, weighing on shares of energy companies. Energy stocks in the S&P 500 -- the worst performers in the broad index in 2017 -- fell 0.5%, deepening their losses for the year.

Technology shares in the S&P 500 jumped 0.5%, giving major indexes a boost. Shares of Apple, which posted a record close Monday, extended their ascent, rising 0.9% to $154.42 and posting among the biggest gains in the Dow industrials.

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As stocks rose, government bonds slipped Tuesday, with the yield on the 10-year U.S. Treasury note rising to 2.401%, according to Tradeweb, from 2.376% Monday. Yields rise as bond prices fall.

Elsewhere, the Stoxx Europe 600 added 0.4%, on track for its best finish since 2015. Shares of Commerzbank gave a lift to Europe's banking sector after the company reported higher-than-expected profit and revenue in the first quarter.

Australia's S&P ASX 200 fell 0.5% as underwhelming results from Commonwealth Bank of Australia and reports that the Australian government would introduce a bank tax weighed on shares of lenders.

Hong Kong's Hang Seng Index rose 1.3%, supported by a recovery in shares of gambling companies.

Japan's Nikkei Stock Average pulled back 0.3% after government data showed Japanese wages fell for the first time since last May.

Kenan Machado contributed to this article

Write to Riva Gold at riva.gold@wsj.com and Kenan Machado at kenan.machado@wsj.com

(END) Dow Jones Newswires

May 09, 2017 10:44 ET (14:44 GMT)