Stocks ended higher Tuesday, following on from a tech-led rebound that lifted Wall Street higher in the previous session, as investors looked to a slate of corporate earnings and an update from electric-vehicle maker Tesla after the closing bell.
The Dow Jones Industrial Average finished up 263 points, or 0.69%, to 38,503.69, while the S&P 500 gained 59 points, or 1.20%, to 5,070.55 and the tech-heavy Nasdaq climbed 245 points, or 1.59%, to 15,696.64.
Spotify Technologies surged 11.5% after beating Wall Street's first-quarter earnings forecasts and issuing strong guidance. UPS (UPS) and GE Aerospace (GE) all beat earnings expectations.
Tesla is scheduled to post earnings after the bell.
Updated at 1:09 PM EDT
Treasury auction
The Treasury sold $69 billion in new 2-year notes Tuesday, drawing firm interest from both foreign and domestic investors even as markets continue to worry that the Federal Reserve might be tempted to raise interest rates later in the year.
Investors placed bids worth around $183.5 billion, generating a bid-to-cover ratio of 2.66, just ahead of the 2.62 tally recorded last month when the bonds on sale were notably more expensive.
So-called indirect bidders, which are mostly comprised of foreign central banks, took down 66.2% of the sale, just ahead of the recent four-auction average of 64%.
2-year Treasury Auction Results
— Kevin Green (KG), MSDA (@KGBULLANDBEAR) April 23, 2024
Bid-to-cover: 2.66 vs 2.62 previous
High Yield: 4.898%
Dealer takedown: 15.08% vs 13.36% previous
Mixed result
Updated at 11:33 AM EDT
An Apple in May
Apple shares are modestly higher, reversing an earlier decline tied to reports of weakening China iPhone sales, amid reports of a May 7 launch event that could include new versions of the iPad Pro and iPad Air.
Apple shares were marked 0.48% higher on the session at $166.47 each, a move that still leaves the stock down more than 10.3% for the year.
Related: Apple just announced a special event that should bring new iPads
Updated at 9:37 AM EDT
Solid open
The S&P 500 added 19 points, or 0.11%, in the opening minutes of trading, with the Nasdaq rising 78 points, or 0.51%, and the Dow gaining a modest 80 points.
S&P 500 Opening Bell Heatmap (April 23, 2024)$SPY +0.32% 🟩$QQQ +0.46% 🟩$DJI +0.18% 🟩$IWM +0.11% 🟩 pic.twitter.com/9DDtxAo9kM
— Wall St Engine (@wallstengine) April 23, 2024
Updated at 7:55 AM EDT
GE Aerospace flies
In its final reports as a combined group, General Electric posted better-than-expected first quarter profits, with GE Aerospace notching a 34% surge in overall orders, allowing it to boost its full-year profit forecast.
GE Aerospace shares, which inherit the legacy GE ticker on the NYSE, were marked 4.9% higher in pre-market trading to indicate an opening bell price of $157.55 each.
Related: GE Aerospace leaps after boosting profit forecast following historic split
Stock Market Today
Investors snapped up beaten-down equities in tech and a host of other sectors Monday coming back from the biggest pullbacks on Wall Street since last October and lifting the S&P 500 back above the 5,000 point mark by the close of the trading day.
Benchmark Treasury note yields held in place, helping rate-sensitive stocks outperform the broader market, as Federal Reserve policy markets entered their mandatory quiet period ahead of the central bank's next meeting on April 30.
Investors will likely key on a $69 billion auction of 2-year notes later in the session, which will mark a key test of foreign demand amid the market's elevated inflation concern. Another factor: S&P Global's broader reading of economic activity for the month of April.
Benchmark 2-year notes were last seen little changed at 4.985% while 10-year notes were changing hands at 4.625% heading into the start of the New York trading session.
Wall Street will also navigate a host of corporate earnings this morning, including updates from United Parcel Service (UPS) , PepsiCo (PEP) , General Electric (GE) and General Motors (GM) .
UPS moved up 1.4% after it posted a stronger-than-expected bottom line of $1.43 per share, offsetting a slump in overall package volumes and narrower profit margins tied to a new labor contract with the Teamsters union.
PepsiCo, meanwhile, slipped 0.2% after reiterating its full-year-profit forecast following a beat on the top and bottom lines of its first-quarter earnings report.
General Motors powered 3.9% higher after smashing Wall Street forecasts for its Q1 and boosting its full-year-profit forecasts thanks to solid truck and SUV sales and a slowing of investments into its EV division.
Tesla (TSLA) will update investors after the closing bell, with investors and analysts focused on Chief Executive Elon Musk's conference call. During that discussion he is expected to articulate details of the group's shift toward autonomous driving and robotaxis amid the second-worst slump for the stock since it listed on the Nasdaq in 2010.
Shares in the group were last marked 0.5% higher in pre-market trading to indicate an opening bell price of $142.75 each.
Related: Tesla crash continues as Musk doubles down on 'blindingly obvious' strategy
Heading into the start of the trading day, futures contacts tied to the S&P 500 suggest a 16 point opening bell gain while those linked to the Dow Jones Industrial are priced for a 76 point bump.
The tech-focused Nasdaq, meanwhile, is set to open 63 points higher, hurt by another slide for Apple (AAPL) tied to reports of slumping iPhone sales in China.
More Wall Street Analysts:
- Analyst unveils new Nike price target ahead of big summer for sports
- Analysts weigh in on Google-parent Alphabet’s stock after cloud event
- Analysts revamp Disney stock price target after proxy fight
In overseas markets, Europe's Stoxx 600 was marked 0.7% higher in Frankfurt following data showing economic activity in the region hit the highest levels in more than a year and recorded its second consecutive month of expansion in April. Britain's FTSE 100, meanwhile, was marked 0.54% higher in London.
Overnight in Asia, Japan's Nikkei 225 ended 0.3% higher in Tokyo as the yen hit a fresh post-1990 low of 154.87 against the U.S. dollar. That level nears the 155 mark, at which traders expect currency-market intervention from the Japanese government.
Related: Veteran fund manager picks favorite stocks for 2024
