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The S&P 500 closed at a record, as most of its component stocks gained. Continued earnings beats in the first-quarter reporting season is a big reason why.

Stocks rose sharply Thursday, even as bond yields jumped. That’s a major challenge for growth stocks, not value. Nonetheless, the S&P 500 set a closing record, and the Nasdaq Composite reached a new intraday high.

The Dow Jones Industrial Average rose 239.98 points, or 0.71%, to close at 34,060.36. The S&P 500 added 28.29 points, or 0.68%, to end at an all-time high of 4,211.47, and the Nasdaq Composite gained 31.52 points, or 0.22%, to close at 14,082.55. The biggest gainer in the S&P 500 was Dish Network (ticker: DISH), which saw shares soar 8.3% after the satellite-services firm posted better-than-expected earnings.

On a day which value outperformed growth stocks, it wasn’t a surprise to see the Dow, which is laden with value names, outpace the other two major indexes. In fact, 24 of the Dow’s 30 components rose on the day, with the three of the six losers— Microsoft (MSFT), Apple (AAPL), and Salesforce.com (CRM)—considered as growth stocks. Consistent with that, the Vanguard S&P 500 Value Index Fund ETF (VOOV) rose 0.9%, beating the 0.29% gain of its growth counterpart (VOOG). Sharper losses came from other areas in the growth realm. The ARK Innovation ETF (ARKK) fell 2.9%. It counts electric-vehicle giant Tesla (TLSA), which saw shares slip 2.5%, as its largest holding.

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This all comes as bond yields rose meaningfully, which often correlates to value outperformance. The 10-year Treasury yield ended at 1.64%, but was high as 1.68% on Thursday, up from Wednesday’s close at 1.62%. Rising treasury yields reflect firming inflation and economic demand, a positive for the mature companies that are in their earnings prime; shares of these companies are viewed as being in the value camp, and they are sensitive to the perceived health of the current economy. Higher treasury yields erode the value of future cash flows, which hurt growth companies, as they expect to see the bulk of their profits come farther down the line.

The S&P 500 ended with a gain—even though growth didn’t shine—because 77% the component stocks in the index rose, according to FactSet. One piece to that puzzle: 55 of the S&P 500 companies, 11% of the index, reported earnings, according to Credit Suisse data, and firms have been topping estimates. Through the first-quarter reporting season, companies in the index have beaten earnings-per-share estimates by an aggregate 24%, and more than three-fourths of companies are beating by any margin, the bank said. And investors have been rewarding the outperformance, sending shares of the average company that beats on both revenue and EPS up 0.7%. While that’s a tick below the historical average bump, it’s still in the upward direction, aiding the S&P 500’s gain.

Earnings still matter. Watch them continue to roll in.

Write to Jacob Sonenshine at jacob.sonenshine@barrons.com