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Stocks gain as earnings provide some optimism; 10-yr yield climbs

  • All three main U.S. inventory indexes finish greater
  • Oil, gold futures rise
  • Dollar stumbles

NEW YORK, Oct 19 (Reuters) – Stock indexes all over the world jumped on Tuesday as U.S. know-how shares prolonged current features and earnings reviews had been upbeat, whereas the 10-year U.S. Treasury yield rose to its highest in additional than 4 months.

The U.S. greenback was decrease on the day as different currencies, together with sterling, had been supported by investor expectations that rates of interest could possibly be elevated ahead of some had forecast. learn extra

On Wall Street, the know-how sector (.SPLRCT) boosted the S&P 500 essentially the most, whereas current stronger-than-expected outcomes have bumped up the forecast for S&P 500 earnings for the third quarter. learn extra

Investors stay nervous, nonetheless, concerning the affect that greater prices, provide disruptions and labor shortages are having on firms.

“The key for the market to going up from here will not be higher multiples, it will have to be higher earnings. That’s why it’s so important to pay attention to what those profit margins do going forward and what the trajectory of GDP looks like,” mentioned Eric Marshall, portfolio supervisor at Hodges Funds.

Among U.S. firms reporting outcomes on Tuesday, insurer Travelers Cos Inc (TRV.N) beat estimates for third-quarter revenue and its shares rose. Johnson & Johnson (JNJ.N) raised its 2021 adjusted revenue forecast and its shares jumped 2.3%.

The Dow Jones Industrial Average (.DJI) rose 198.7 factors, or 0.56%, to 35,457.31, the S&P 500 (.SPX) gained 33.17 factors, or 0.74%, to 4,519.63 and the Nasdaq Composite (.IXIC) added 107.28 factors, or 0.71%, to fifteen,129.09.

The pan-European STOXX 600 index (.STOXX) rose 0.33% and MSCI’s gauge of shares throughout the globe < .MIWD00000PUS> gained 0.73%.

The MSCI index reached its highest in a few month.

MSCI World Index
MSCI World Index

The greenback index towards a basket of different currencies was final down 0.22% on the day at 93.73, after earlier dropping to 93.50, the bottom since Sept. 28.

The euro gained 0.25% to $1.1640. Currencies, together with sterling and the New Zealand greenback, are benefiting from rising rate of interest improve expectations.

Bitcoin final rose 3.49% to $64,201.08.

In the U.S. Treasury market, the yield curve widened, reversing the current pattern.

In afternoon U.S. buying and selling, U.S. 10-year yields had been final up almost six foundation factors at 1.6407% . The yield hit a 4-1/2-month peak of 1.6440%.

The U.S. 5-year yield, which has been on a tear the final two weeks, was final down at 1.1586%.

Oil costs climbed and had been close to multi-year highs as an vitality provide crunch continued throughout the globe. Brent crude rose 75 cents to settle at $85.08 a barrel. U.S. West Texas Intermediate (WTI) futures rose 52 cents to settle at $82.96. learn extra

In different commodities, U.S. gold futures gained 0.15% to $1,769.70 an oz.

Additional reporting by Tommy Wilkes in London, Shreyashi Sanyal and Devik Jain in Bengaluru, Karen Brettell, Stephanie Kelly and Sinead Carew in New York, and Saikat Chatterjee; Editing by Jason Neely, John Stonestreet, Steve Orlofsky and Cynthia Osterman

A man looks at stock market monitors in Taipei January 22, 2008. REUTERS/Nicky Loh

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 19, 2021.  REUTERS/Brendan McDermid

Signage is seen outside the entrance of the London Stock Exchange in London, Britain. Aug 23, 2018. REUTERS/Peter Nicholls

MSCI World Index

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