The Dow Jones Industrial Average opened at a record high yesterday after a surge in shares of Caterpillar Inc, while US 10-year Treasury yields hit a more than five-month peak.
The world’s largest construction and mining equipment maker, Caterpillar, beat third-quarter profit and sales estimates and raised its full-year forecasts.
The Peoria, Illinois company expects revenue in its construction business to surge about 20 per cent and its mining business to jump 30 per cent. The company’s stock was up 4.6 per cent.
3M, another Dow component, which makes products such as autoparts and office supplies, reported upbeat results as well.
Its stock was up 6.9 per cent.
Corporate earnings got off to a strong start, with 73.2 per cent of the 97 S&P companies beating profit expectations as of Monday versus a 72-per cent beat rate over the past four quarters.
The Dow Jones Industrial Average rose 186.84 points to 23,460.8, the S&P 500 gained 3.6 points to 2,568.58 and the Nasdaq Composite added 12.14 points, or 0.18 per cent, to 6,598.97.
Benchmark 10-year United States Treasury notes were last down 9/32 in price to yield 2.4081 per cent, from 2.375 per cent on Monday.
The 30-year US Treasury bond were last down 21/32 in price to yield 2.9226 percent, from 2.89 per cent late on Monday.
US Treasury yields tracked European government bond yields higher. German Bund yields hit two-week peaks.
Strong business and bank lending surveys backed a growing view that the European Central Bank will announce a reduction of its monthly bond purchases tomorrow.
The pan-European FTSEuro-first 300 index lost 0.23 per cent yesterday and MSCI’s gauge of stocks across the globe hovered below all-time highs, gaining 0.03 per cent.
Apple supplier and chipmaker AMS saw a 21.9 per cent jump after it pointed to strong demand ahead of the iPhone X release.
Strong profits from Spain’s Caixabank also lifted the IBEX 0.6 per cent after its Catalonia-related underperformance.
Japan’s Nikkei had extended its 16-day winning streak to a 21-year peak overnight following the weekend election win for Prime Minister Shinzo Abe.
The New Zealand dollar hit a five-month low after the incoming Labour-led coalition government said it plans to review and reform the Central Bank Act.
The dollar index rose 0.01 per cent as the wait continued for President Donald Trump to name the next head of the US central bank after he said a decision was “very, very close.”
Spot gold edged 0.2 per cent lower to $1,278 an ounce, remaining near a two-week low.
United States crude rose 0.25 per cent to $52.03 per barrel and Brent was last at $57.37, flat on the day.