Stocks Lifted by Upbeat Earnings, Stable Commodity Prices

By Riva Gold and Kenan MachadoFeaturesDow Jones Newswires

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

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.

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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.

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 and Kenan Machado at

(END) Dow Jones Newswires

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