US stock indexes mostly higher on strong earnings reports

U.S. stock indexes were mostly higher Tuesday afternoon as investors welcomed some strong corporate earnings reports. Gains in health care and technology companies outweighed losses by consumer goods manufacturers, utilities and other sectors. Small-company stocks fell.

KEEPING SCORE: The S&P 500 index rose 9 points, or 0.3 per cent, to 2,816 as of 3:23 p.m. Eastern Time. The Dow Jones Industrial Average gained 161 points, or 0.6 per cent, to 25,205. The Nasdaq composite lost 7 points, or 0.1 per cent, to 7,834. The Russell 2000 index of smaller-company stocks slid 19 points, or 1.1 per cent, to 1,679. More stocks fell than rose on the New York Stock Exchange. The S&P 500, the market’s benchmark index, is on a three-week winning streak.

THE QUOTE: “Investors are focused on the good news on earnings and the economy, but they’re still a bit cautious when it comes to the market moving higher, and that’s because of all the news flow on geopolitical events and tariffs,” said Jeff Kravetz, regional investment strategist at U.S. Bank Private Wealth Management.

EARNINGS ON DECK: This is the busiest week for the second-quarter earnings season, with roughly a third of companies in the S&P 500 scheduled to report, including Amazon, Facebook, Boeing and Ford Motor. Of the 17.4 per cent of the companies in the S&P 500 that had issued quarterly results as of Monday, some 71 per cent reported earnings and revenue that beat analysts’ forecasts, according to S&P Global Market Intelligence. That’s reinforced the underlying perception in the financial markets that the U.S. economy is performing strongly and that the Federal Reserve will raise interest rates next month.

Even so, traders remain wary of global trade tensions, which have ratcheted up in recent weeks as the Trump administration has sought to renegotiate trade pacts with China, Canada and European nations, resorting to imposing tariffs on imports of aluminum, steel and other goods. The strategy has prompted U.S. trading partners to retaliate, creating risks for the economy.

AGOG OVER GOOGLE: Google parent Alphabet gained 3.6 per cent to $1,254.70 after the company reported second-quarter earnings late Monday that topped Wall Street’s expectations even as it booked a $5.1 billion charge to cover a fine levied by European regulators. Alphabet led the market-leading rally in technology stocks.

REVVED UP: Harley-Davidson climbed 5.6 per cent to $43.78 after the motorcycle manufacturer’s latest quarterly earnings came in well ahead of what analysts were expecting. The company also said it’s planning strategic changes as tariffs affect its business.

GOOD MEDICINE: Biogen added 3.3 per cent to $369.81 after the drugmaker posted strong quarterly results and raised its forecast for the year.

SOLID QUARTER: Eli Lilly & Co. gained 4.8 per cent to $93.19 after the drug company’s quarterly results beat Wall Street estimates. The company also said it will spin off its animal health business.

ON THE FARM: Investors sent shares in several agriculture sector companies higher following reports that the Trump administration is preparing a plan that would send billions in aid to U.S. farmers hurt by tariffs. Farming equipment manufacturer Deere & Co. rose 2.6 per cent to $139.06. Fertilizer maker Mosaic added 2.8 per cent to $29.17.

SPIN CYCLE: Whirlpool was the biggest decliner in the S&P 500, plunging 13.9 per cent to $129.74 after the appliance maker’s latest results came up short of forecasts. The company is being hurt by tariffs on imported aluminum and steel.

BOND YIELDS: Bond prices rose. The yield on the 10-year Treasury fell to 2.94 per cent from 2.96 per cent.

OIL: Benchmark U.S. crude climbed 63 cents, or 0.9 per cent, to settle at $68.52 per barrel in New York. Brent crude, used to price international oils, gained 38 cents to $73.44 per barrel in London.

The pickup in oil prices helped lift energy sector stocks. Pioneer Natural Resources added 3.2 per cent to $187.08.

CURRENCIES: The dollar fell to 111.22 yen from 111.48 yen on Monday. The euro weakened to $1.1683 from $1.1689.

METALS: Gold slipped 10 cents to $1,225.50 an ounce. Silver added 10 cents to $15.52 an ounce. Copper gained 6 cents to $2.81 a pound.

MARKETS OVERSEAS: In Europe, Germany’s DAX rose 1.1 per cent and the CAC 40 in France added 1 per cent. The FTSE 100 index of leading British shares gained 0.7 per cent. Major indexes in Asia finished higher. Japan’s Nikkei 225 gained 0.5 per cent, while South Korea’s Kospi added 0.5 per cent. Hong Kong’s Hang Seng jumped 1.4 per cent. Australia’s S&P-ASX 200 rose 0.6 per cent.