By April Joyner
NEW YORK (Reuters) - The benchmark U.S. S&P 500 index and the Nasdaq index rose on Monday as a jump in 10-year bond yields boosted financial sector stocks and investors anticipated continued strength in corporate earnings and U.S. economic growth.
The financial sector stock index <.SPSY> rose 1.3 percent after 10-year U.S. Treasury yields climbed to their highest level in five weeks. The Federal Reserve was seen as likely to continue raising interest rates despite criticism from President Donald Trump.
"Yields are climbing across the board, which is a sign of a strengthening economy," said Oliver Pursche, chief market strategist at Bruderman Asset Management in New York. "And earnings have been very strong."
Analysts now forecast profit growth of about 22 percent for the second-quarter earnings season, up from 20.7 percent at the start of the month, according to Thomson Reuters I/B/E/S.
News of ongoing trade talks helped U.S. stocks edge upward. Mexican President-elect Andres Manuel Lopez Obrador sent Trump a letter urging a quick wrap-up of NAFTA trade negotiations, and trade officials from Mexico and the United States will meet later this week.
Also, European Commission President Jean-Claude Juncker is scheduled to meet with Trump on Wednesday over the imposition of import tariffs, though he will not arrive in Washington with a specific trade offer.
The Dow Jones Industrial Average <.DJI> fell 13.83 points, or 0.06 percent, to 25,044.29, the S&P 500 <.SPX> gained 5.15 points, or 0.18 percent, to 2,806.98 and the Nasdaq Composite <.IXIC> added 21.68 points, or 0.28 percent, to 7,841.87.
But some investors worried about the effects of international trade tensions on the U.S. dollar, which has climbed in recent months. Several U.S. multinationals are reevaluating their currency hedging strategies.
Shares of Illinois Tool Works Inc
Shares of Alphabet Inc
Shares of oilfield services provider Halliburton Co
LifePoint Health Inc
Declining issues outnumbered advancing ones on the NYSE by a 1.38-to-1 ratio; on Nasdaq, a 1.06-to-1 ratio favoured decliners.
The S&P 500 posted 27 new 52-week highs and six new lows; the Nasdaq Composite recorded 112 new highs and 53 new lows.
Volume on U.S. exchanges was 5.50 billion shares, compared to the 6.16 billion average for the full session over the last 20 trading days.
(Reporting by April Joyner; Additional reporting by Amy Caren Daniel in Bengaluru; Editing by Shounak Dasgupta and Clive McKeef)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Updated Date: Jul 24, 2018 03:05 AM