U.S stocks ended higher in a choppy session as investors digested a fresh batch of earnings and prepared for another interest rate hike by the Federal Reserve.
|I:DJI||DOW JONES AVERAGES||32637.19||+516.91||+1.61%|
|I:COMP||NASDAQ COMPOSITE INDEX||11740.650441||+305.91||+2.68%|
Bond prices fell, pushing yields higher. The yield on the 10-year Treasury was at 2.957% after rising to 3.00% on Monday, the highest since 2018.
Financials helped aid gains in the Dow Jones Industrial Average as JPMorgan and Goldman Sachs moved higher.
|JPM||JPMORGAN CHASE & CO.||129.44||+2.20||+1.73%|
|GS||THE GOLDMAN SACHS GROUP INC.||323.63||+8.73||+2.77%|
The Federal Reserve is expected to raise short-term interest rates by double the usual amount when it releases its latest statement on Wednesday. It has already raised its key overnight rate once, for the first time since 2018, and Wall Street is expecting several big hikes in coming months. Banks benefit as higher rates make it more costly to borrow — for a car, a home, a credit card purchase and may weaken the economy.
In earnings, about 292 stocks in the S&P 500, or nearly 60% of the benchmark index, have posted January through March results, and so far the numbers are for the most part well ahead of forecasts.
Pfizer shares rose after quarterly sales jumped 77% to over $25 billion on COVID-19 demand. The company said it expects demand to remain solid as booster treatments for the virus remain recommended.
Biogen also rose after announcing CEO Michel Vounatsos announced he will step down once a successor is named.
Cosmetic giant Estee Lauder shares fell after the company lowered its fiscal 2022 outlook and now expects to earn $7.15 per share, down from the original $7.58 goal due to COVID-19.
|EL||THE ESTÉE LAUDER COMPANIES INC.||240.40||+8.29||+3.57%|
"The Company is revising its full fiscal year outlook, reflecting both outstanding performance year-to-date and additional headwinds that are impacting the fourth quarter of fiscal 2022, including the COVID-related restrictions in China, that are also affecting its travel retail business, and the impact of the invasion of Ukraine" the company stated in its earnings press release.
In the afternoon watch for Prudential Financial, AIG, Starbucks, AMD, Airbnb, Akamai Technologies and Lyft among many others.
|PRU||PRUDENTIAL FINANCIAL INC.||104.51||+2.36||+2.31%|
|AIG||AMERICAN INTERNATIONAL GROUP INC.||57.69||+1.03||+1.82%|
|AMD||ADVANCED MICRO DEVICES INC.||98.75||+6.10||+6.58%|
|AKAM||AKAMAI TECHNOLOGIES INC.||100.87||+1.77||+1.79%|
U.S. crude oil prices slipped with U.S. crude closing at $102.41 and Brent, the global benchmark, at $104.97.
|BNO||UNITED STS BRENT OIL FD LP UNIT||33.32||+0.73||+2.24%|
|USO||UNITED STATES OIL FUND L.P.||84.59||+2.11||+2.56%|
The Associated Press contributed to this report.