NEW YORK - Stocks rose moderately in early trading Tuesday as Wall Street awaited the earnings season's unofficial kickoff with Alcoa Inc.'s report and minutes from the Federal Reserve's last meeting.
An upbeat profit report from Yum Brands Inc., the parent of KFC, Taco Bell and Pizza Hut, also lifted the market's mood.
The report from aluminum producer Alcoa, the first of the 30 constituent stocks of the Dow Jones industrial average to report results, could provide investors further insight into how well corporate profits held up during the third quarter. Wall Street expects the company to report a modest rise in profits after the closing bell Tuesday.
As the flow of earnings reports begins in earnest, Wall Street will also devote attention to minutes from the Fed's Sept. 18 meeting, when the central bank lowered the target federal funds rate by a larger-than-expected half percentage point.
The Fed's decision to make access to cash cheaper helped dismantle some of the intransigence in the credit markets that developed amid concerns about souring mortgage debt. Wall Street will no doubt be looking for any insights into whether the Fed is likely to cut again when it meets Oct. 30-31 or hold the target rate at 4.75 percent.
Wall Street's attention to the Fed will also likely extend to comments expected from two of the bank's officials. St. Louis Fed President William Poole and San Francisco Fed President Janet Yellen are slated to deliver speeches Tuesday.
In the first hour of trading, the Dow rose 34.71, or 0.25 percent, to 14,078.44.
Broader stock indicators also advanced. The Standard & Poor's 500 index rose 4.87, or 0.31 percent, to 1,557.45, and the Nasdaq composite index rose 8.81, or 0.32 percent, 2,796.18.
Bonds rose as investors appeared to consider whether Friday's sell-off was overdone. The 10-year Treasury note yield, which moves inversely to its price, fell to 4.62 percent from 4.64 percent late Friday. The Treasury bond market was closed Monday for the Columbus Day holiday.
The dollar was generally lower against other major currencies, while gold prices rose.
Light, sweet crude rose 28 cents to $79.30 in premarket electronic trading on the New York Mercantile Exchange.
In corporate news, Yum Brands rose $1.91, or 5.2 percent, to $38.19 after the company on Monday reported stronger-than-epxected third-quarter profits. While revenue in the U.S. declined, strong international sales boosted results.
Sprint Nextel Corp. fell 52 cents, or 2.8 percent, to $17.98 after the phone company said after the bell Monday its Chairman, President and Chief Executive Gary Forsee would step down. The company also warned it expects full-year operating revenue to come in slightly below its targeted range.
Google Inc. rose again Tuesday after closing above $600 for the first time Monday. The stock rose $8.43 to $618.05.
Advancing issues outnumbered decliners by about 5 to 3 on the New York Stock Exchange, where volume came to 57.7 million shares.
The Russell 2000 index of smaller companies rose 1.51, or 0.18 percent, to 841.65.
Overseas, Japan's Nikkei stock average rose 0.56. Britain's FTSE 100 rose 0.99 percent, Germany's DAX index rose 0.34 percent, and France's CAC-40 advanced 0.37 percent.
---
On the Net:
New York Stock Exchange: http://www.nyse.com
Nasdaq Stock Market: http://www.nasdaq.com
Комментариев нет:
Отправить комментарий