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S&P hits four-month high on oil, Pepsi boost

Reuters 

By Amy Caren Daniel

(Reuters) - U.S. stocks rose on Tuesday, with the 500 hitting a four-month high, boosted by and strong results from

PepsiCo's shares rose 4.3 percent after the company's quarterly revenue and profit topped analysts' estimates, helped by strong sales in its unit.

"The first earnings report came out, and PepsiCo's earnings beat expectations and that's a good start for the market," said Peter Cardillo, at in

helped drive a 0.61 percent gain in the consumer staples Rival rose nearly 1 percent.

The energy was the biggest gainer among the 11 sectors, jumping 1.39 percent as rose due to growing supply outages. [O/R]

Shares of Exxon, and were all up around 1.5 percent.

Overall, 500 companies are expected to post second-quarter profit growth of around 21 percent, slightly higher than what was forecast in April, according to data.

However, investors and analysts will parse quarterly reports to gauge the impact of China's tariffs, which are expected to hit a range of U.S. companies.

On Tuesday, raised "anti-dumping tariff rates" for some U.S.-made products, effective July 11.

"The trade conflict is far from over and could eventually have a very negative impact on equities, but for now it is taking a back seat only because we are entering into the earnings season," Cardillo said.

He also pointed to a "disappointing" report from the National Federation of Independent that showed U.S. small confidence fell 0.6 points to 107.2 in June as another sign that the trade dispute is worrisome for corporate

At 9:59 a.m. EDT, the was up 6.28 points, or 0.23 percent, at 2,790.45. The index rose to as much as 2,791.7 points, its highest since March 13.

The was up 116.62 points, or 0.47 percent, at 24,893.21 and the was up 5.21 points, or 0.07 percent, at 7,761.41.

rose 1.2 percent. The U.S. automaker signed agreements to open a plant in with an annual capacity of 500,000 cars, reported.

Shares of Alliance dropped 1.3 percent after Evercore ISI cut its rating on the stock to "in line" from "outperform."

Rating downgrades on eBay, and also pulled shares of the three S&P 500 components down between 1.6 percent and 3.4 percent.

Advancing issues outnumbered decliners by a 1.44-to-1 ratio on the NYSE and by a 1.16-to-1 ratio on the Nasdaq.

The S&P index recorded 20 new 52-week highs and no new lows, while the Nasdaq recorded 60 new highs and eight new lows.

(Reporting by in Bengaluru; Editing by Anil D'Silva)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, July 10 2018. 19:47 IST
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