Big stock indexes end mostly higher
The major U.S. stock indexes finished mostly higher Tuesday as investors welcomed strong corporate earnings reports from Google parent Alphabet and other companies.
Gains by technology and healthcare companies outweighed losses by consumer goods manufacturers, retailers and others.
Smaller-company stocks, which have been beating the rest of the market this year, turned sharply lower as investors weighed the implications of the Trump administration’s decision to send emergency aid to farmers hurting from the U.S.-China trade war.
Tariffs also weighed on Whirlpool’s quarterly results, giving the appliance maker its worst day in more than 30 years.
The Standard & Poor’s 500 index rose 13.42 points, or 0.5%, to 2,820.40. The Dow Jones industrial average rose 197.65 points, or 0.8%, to 25,241.94. The Nasdaq composite slipped 1.11 points to 7,840.77. The Russell 2000 index of smaller-company stocks slid 18.22 points, or 1.1%, to 1,680.20, its worst day in a month.
Alphabet climbed 3.9% to $1,258.15 after it posted quarterly earnings that beat expectations, despite a $5.1-billion charge to cover a fine.
Harley-Davidson jumped 7.7% to $44.63 after the motorcycle maker’s quarterly earnings came in well ahead of expectations. It also said it was planning strategic changes as tariffs affect its business.
Healthcare stocks got a lift from a couple of companies that reported strong quarterly results. Biogen rose 4.1% to $372.84. Eli Lilly & Co. rose 5% to $93.35.
On Tuesday, the White House announced a $12-billion plan to assist farmers who have been hurt by President Trump’s trade disputes. Farming equipment manufacturer Deere & Co. rose 3.2% to $139.84. Fertilizer maker Mosaic advanced 2.3% to $29.02.
The plan also prompted the sell-off in small-company stocks, which tend to be more U.S.-focused and had climbed as the dollar got stronger and investors worried about trade.
Whirlpool isn’t expecting much relief from the effects of U.S. tariffs on steel and aluminum imports. It blamed higher raw materials costs on the tariffs and said that it expects more of the same in the second half of 2018. Its stock dived 14.5% to $128.82.
Bond prices rose. The yield on the 10-year Treasury fell to 2.95% from 2.96%.
Benchmark U.S. crude climbed 63 cents to $68.52 a barrel. Brent crude rose 38 cents to $73.44 a barrel. Heating oil rose 1 cent to $2.13 a gallon. Wholesale gasoline was little changed at $2.09 a gallon. Natural gas rose 1 cent to $2.73 per 1,000 cubic feet. Oil prices’ rise helped lift energy stocks.