McDonald's, Caterpillar lift Dow, S&P climbs to record high

By Markets FOXBusiness

(Reuters)

Strong earnings reports from McDonald’s (MCD) and Caterpillar (CAT) helped propel U.S. stocks on Tuesday, as the S&P 500 closed at a new record high.

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The Dow Jones Industrial Average gained 100 points, or 0.5%, to 21,613. The S&P 500 climbed 7.1 points, or 0.3%, to 2,477. The Nasdaq Composite edged 1.4 points higher to 6,412, also an all-time high.

During the session, the Dow traded above its all-time closing high of 21,640, as investors flocked to blue-chip members McDonald’s and Caterpillar.

McDonald’s climbed 4.8%, as $1 sodas and premium sandwiches carried the fast-food chain to better same-store sales than expected. Caterpillar, which gained 5.9%, raised its 2017 financial guidance after posting earnings growth of 46% on stronger demand for construction and mining equipment. An earnings miss sent 3M (MMM), another Dow component, down 5%.

Elsewhere in corporate earnings, General Motors (GM) booked weaker profits but maintained its full-year outlook.

Energy companies were the top performers among the S&P’s 11 sectors, as oil prices settled higher for the second consecutive day in response to Saudi Arabia’s move to cap exports next month. U.S. oil futures climbed $1.55, or 3.34%, to $47.89 a barrel. Brent crude, the international benchmark, was trading 3.2% higher at $50.15 a barrel.

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Financial stocks also advanced on the day with a boost from higher bond yields. The 10-year Treasury note rose to 2.329% from 2.253%.

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In economic news, U.S. consumer confidence approached a 16-year high in July. The Conference Board’s index jumped to 121.1, the second-highest reading since 2000.

Home prices grew at a consistent pace of 5.6% in May, according to the S&P CoreLogic Case-Shiller index.

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