stocks soar as banks and manufacturers offset technological slide | Economic news

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By DAMIAN J. TROISE and ALEX VEIGA, AP Business Editors

Stocks end another checkered day on Wall Street on Tuesday as gains in banks and elsewhere in the market outweigh a decline in tech companies. The S&P 500 Index rose 0.1% and the Dow Jones Industrial Average rose 0.5%. The Nasdaq slipped 0.5%. Crude oil rose 2.7% after falling the day before. Food distributor Sysco jumped 6.5% after posting much better results than analysts expected. Kansas City Southern jumped 7.5% after Canadian Pacific increased its bid for the rail operator, reigniting a bidding war with Canadian National. The 10-year Treasury yield was 1.35%.

THIS IS A CURRENT UPDATE. AP’s previous story follows below.

Stocks are slightly higher on Wall Street on Tuesday afternoon as gains in banks and elsewhere in the market outweigh a decline in tech companies.

The S&P 500 was up 0.1% at 3:36 p.m. EST, a striking distance from eclipsing the record it set on Friday. The majority of the companies in the benchmark made gains, but they were subdued by the tech companies, which have an inordinate weighting on the S&P 500.

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The Dow Jones Industrial Average rose 148 points, or 0.4%, to 35,249, also in line with an all-time high. The decline in tech stocks weighed on the tech-rich Nasdaq, which lost 0.5%.

Banks made some of the biggest gains as bond yields edged up. Banks enjoy higher yields, which allows them to charge higher interest rates on loans. The yield on the 10-year Treasury bill rose to 1.34% from 1.31% on Monday night.

Oil prices have risen after slipping most of last week and through Monday. US benchmark crude oil rose 2.7% and helped boost energy stocks. Exxon Mobil rose 1.8%.

The wider market remains choppy with investors in the middle of a relatively quiet week. The latest round of corporate earnings is almost over and only some economic data is expected.

“We believe this is a growing market and economy and there is room for this market to move,” said Rob Haworth, senior director of investment strategy at US Bank Wealth Management. “But this growth story comes with certain risks.”

The lull comes as Wall Street still tries to gauge the pace of economic growth amid new concerns about the latest wave of COVID-19 from the more contagious delta variant. Parts of Japan, including the capital Tokyo, remain in a state of emergency as the growing number of infections places more COVID-19 patients in already overcrowded hospitals.

Analysts said the pace of growth is likely to continue to slow as the year progresses, but the latest outbreak of the virus has raised more concerns about its magnitude. Investors might get a better idea of ​​the impact of the virus on the economy over the next few months as schools reopen after summer recess and people try to return to normal activities, Haworth said.

Inflationary concerns and the Federal Reserve’s future plans to ease its support for low interest rates are also weighing on the markets.

Profit season ends with several big names. Sysco jumped 6.4% after the food distributor released quarterly results above Wall Street estimates.

Ebay will release its results on Wednesday and Walt Disney will release its results on Thursday.

Kansas City Southern jumped 7.4% after Canadian Pacific increased its bid for the rail operator, reigniting a bidding war with Canadian National.

Copyright 2021 The Associated press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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