Stocks open higher on Wall Street
U.S. stocks were jumping Tuesday morning as rising interest rates give bank stocks a lift. Investors were also buying big-name technology companies. European indexes also climbed.
The Dow Jones industrial average rose 187 points, or 1.1%, to 17,679 as of 10:05 a.m. EDT. The Standard & Poor’s 500 index picked up 21 points, or 1%, to 2,068. The Nasdaq composite index surged 58 points, or 1.2%, to 4,823.
Bond prices fell. The yield on the 10-year U.S. Treasury note rose to 1.86%, from 1.84%. When interest rates go up, as they have been recently, banks can make more money from lending. JPMorgan Chase climbed $1.06, or 1.7%, to $64.52 and Bank of America gained 21 cents, or 1.4%, to $14.68.
Tech stocks rose. Apple picked up 78 cents to $97.21 and Alphabet, Google’s parent company, added $9.67, or 1.3%, to $726.92. Microsoft rose 83 cents, or 1.7%, to $50.86.
Fertilizer maker CF Industries ended a deal to buy OCI’s distribution networks for about $8 billion. CF planned to reincorporate in Britain as part of the deal, which would have reduced its tax bill, but the company said new Treasury Department rules made the combination less appealing. CF Industries will pay OCI $150 million for calling off the deal. CF Industries stock shed $2.03, or 6.8%, to $27.82.
Home builder Toll Brothers reported better first-quarter results than analysts expected, and the company raised its annual projections for home prices and sales. Nationwide home sales also rose to their highest level in eight years. The stock gained $1.60, or 5.9%, to $28.70.
Electronics retailer Best Buy said its quarterly sales kept falling and its outlook was weak. That made Best Buy the latest retailer to disclose disappointing quarterly results. Its stock lost $2.52, or 7.6%, to $30.48.
Investors are watching for clues on whether the Federal Reserve will raise interest rates next month. Speeches by several Fed members this week may provide insight into what policymakers might do at their meeting in June.
France’s CAC 40 added 2% while Germany’s DAX gained 1.8%. Britain’s FTSE 100 rose 1.1%. Japan’s benchmark Nikkei 225 fell 0.9% as the yen continued to strengthen, hurting Japanese exporters. South Korea’s Kospi edged down 0.9%. Hong Kong’s Hang Seng rose 0.1%.
Benchmark U.S. crude picked up 48 cents to $48.58 a barrel in New York. Brent crude, used to price international oils, rose 33 cents to $48.68 a barrel in London.
The dollar rose to 109.95 yen, from 109.19 yen. The euro slipped to $1.1150, from $1.1221.
