Corporate earnings drive stock gains

The Dow Jones Industrial Average headed for its biggest gain in five weeks and the three major U.S. equity benchmarks were set for records as corporate earnings beat estimates.

Stocks were bolstered by IBM’s forecast for its first sales growth in five years and better-than-expected results at Abbott Laboratories and Northern Trust. A gauge of commodities declined as copper and gold slipped. Treasury yields increased after traders added to bets on steeper U.S. interest rates.

More than 80 percent of the 52 members of the S&P 500 index that have already reported earnings for the most recent quarter beat analysts’ forecasts.

Fed funds futures indicate a roughly 80 percent chance that U.S. policy makers will raise rates at their December meeting, up from 72 percent Friday. President Donald Trump’s choice for the next Fed chair will be unveiled before he leaves Nov. 3 for an 11-day trip to Asia and Hawaii, a person familiar with the process said Tuesday. John Taylor was said to have impressed Trump in an interview, buoying gains in the greenback earlier this week given the assumption by many that he would favor tighter policy.

Elsewhere, The Stoxx Europe 600 index rose on wagers the European Central Bank will remain accommodative even as it tapers asset purchases. Stocks in Shanghai gained after Chinese President Xi Jinping laid out a road map to turn the country into a leading global power by 2050. Investors are watching to see whether Xi will push through tough reforms as the world’s second-largest economy faces structural challenges over the next five years.

The S&P 500 index rose 0.2 percent; the Dow Jones Industrial Average added 0.7 percent.