Technology companies, solid earnings push US stocks higher
NEW YORK (AP) — Technology companies and banks led U.S. stocks higher in early trading Tuesday as investors focused on another round of mostly solid corporate earnings.
Major indexes are trading above records set on Monday as Wall Street again brushes off fears about the virus outbreak in China and its impact on businesses and the global economy. The Chinese government has promised to take measures to soften the blow to its economy and investors are hopeful that other governments will do the same if necessary.
Chipmakers made some of the biggest gains within the technology sector, including a 2.5% rise for Advanced Micro Devices.
Citigroup and other banks rose broadly. Bond yields climbed, which allows banks to charge higher interest rates on mortgages and other loans. The yield on the 10-year Treasury rose to 1.58% from 1.54% late Monday.
Hasbro and AutoNation rose after reporting solid earnings.
Energy companies and oil prices also rose. Sprint soared after a federal judge cleared a major obstacle to the company being acquired by T-Mobile.
KEEPING SCORE: The S&P 500 index rose 0.6% as of 10:15 a.m. Eastern time. The Dow Jones Industrial Average rose 120 points, or 0.4%, to 29,393. The Nasdaq rose 0.8%. The Russell 2000 index of smaller company stocks rose 1.1%. Markets in Europe and Asia rose.
DENTED ARMOUR: Under Armour plunged 15.3% after the athletic gear company said it may need to restructure this year, which may involve scuttling the opening of its New York City flagship store. The company also gave investors a weak profit forecast for the year and said the virus outbreak in China will drag first-quarter sales down by $50 million to $60 million.
STRONG SIGNAL: Sprint surged 73.3% and T-Mobile jumped 10.9% after a federal judge rejected claims by a group of states that the deal would mean less competition and higher phone bills. T-Mobile has agreed to buy Sprint for $26.5 billion.
LINGERING VIRUS: China remained mostly closed for business as the daily death toll from a new virus topped 100 for the first time, pushing the total deaths above 1,000. The outbreak has infected more than 43,000 people globally, though the majority of the cases and deaths are in China.