Stocks Higher on Rising Interest Rates 05/24 09:24
U.S. stocks are jumping Tuesday morning as rising interest rates give bank
stocks a lift. Investors are also buying big-name technology companies.
European indexes also climbed.
NEW YORK (AP) -- U.S. stocks are jumping Tuesday morning as rising interest
rates give bank stocks a lift. Investors are also buying big-name technology
companies. European indexes also climbed.
KEEPING SCORE: The Dow Jones industrial average rose 187 points, or 1.1
percent, to 17,679 as of 10:05 a.m. Eastern time. The Standard & Poor's 500
index picked up 21 points, or 1 percent, to 2,068. The Nasdaq composite index
surged 58 points, or 1.2 percent, to 4,823.
BANK ON IT: Bond prices fell. The yield on the 10-year U.S. Treasury note
rose to 1.86 percent from 1.84 percent. 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 percent, to $64.52 and Bank of America gained 21 cents, or 1.4
percent, to $14.68.
BIG NAMES: Tech stocks rose. Apple picked up 78 cents to $97.21 and
Alphabet, Google's parent company, added $9.67, or 1.3 percent, to $726.92.
Microsoft rose 83 cents, or 1.7 percent, to $50.86.
DEAL OFF: Fertilizer maker CF Industries ended a deal to buy OCI's
distribution networks for about $8 billion. CF planned to reincorporate in the
U.K. 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 percent, to $27.82.
HOMECOMING: 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 percent, to $28.70.
NOT THEIR BEST: 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 percent,
WAITING ON THE FED: Investors are watching for clues on whether the U.S.
Federal Reserve will raise interest rates next month. Speeches by several Fed
members this week may provide insight into what Fed policymakers might do at
their meeting in June.
OVERSEAS: France's CAC 40 added 2 percent while Germany's DAX gained 1.8
percent. Britain's FTSE 100 rose 1.1 percent. Japan's benchmark Nikkei 225 fell
0.9 percent as the yen continued to strengthen, hurting Japanese exporters.
South Korea's Kospi edged down 0.9 percent. Hong Kong's Hang Seng rose 0.1
ENERGY: 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.
CURRENCIES: The dollar rose to 109.95 yen from 109.19 yen. The euro slipped
to $1.1150 from $1.1221.