S&P 500, Dow Industrials Higher

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The S&P 500 and Dow Jones Industrial Average pushed higher Tuesday after ending the first trading day of 2022 at records.

Stocks have continued their upward march in the new year after the S&P 500 advanced 27% in 2021.

The broad U.S. stock index rose 0.2%, while the Dow industrials climbed 0.8%, with both indexes building on records set Monday. The tech-heavy Nasdaq Composite fell 0.7%.

Investors are parsing data on the spread of the Omicron variant of Covid-19 as they try to forecast how the pandemic will affect the economy going forward. Cases hit a record in the U.S. and hospitalizations are rising but remain below pandemic peaks, according to data from Johns Hopkins University.

“The mildness of Omicron and therefore, potential for less disruption, less lockdown measures—all of these should feed directly into earnings expectations,” said James Athey, an investment manager at Abrdn.

Most sectors of the S&P 500 rose in morning trading, though the healthcare group dropped 1.3% and the technology group edged slightly lower.

Among individual stocks, Apple shares were little changed after the company on Monday briefly touched $3 trillion in market value before closing below that threshold. Tesla shares slipped 1.3% after jumping 14% on Monday.

Some travel stocks advanced, with Carnival rising 2.5% and Royal Caribbean adding 2.7%. 

In bond markets, the yield on the benchmark 10-year U.S. Treasury note ticked up to 1.666% from 1.628% on Monday. Yields rise as bond prices fall.

The S&P 500 closed at a record high Monday after rising 27% last year.

Photo: Courtney Crow/Associated Press

Oil prices rose after OPEC and a group of Russia-led oil producers agreed to keep pumping more crude in a bet that the global surge in Covid-19 cases won’t depress demand like earlier waves of the virus. Global benchmark Brent crude climbed 1.4% to $80.11 a barrel.  

Bitcoin stabilized after a two-day fall, rising 3.1% compared with its level at 5 p.m. ET Monday. It traded around $47,480, down 30% from its all-time high in November, based on 5 p.m. levels. 

Overseas, the pan-continental Stoxx Europe 600 added 0.9%.

In Asia, major benchmarks were mixed. The Shanghai Composite Index slipped 0.2% after fresh data showed that Chinese exports were broadly stagnant last month due to lackluster foreign demand, even as manufacturing activity rebounded.

Hong Kong’s Hang Seng Index edged up 0.1%. Japan’s Nikkei 225 closed up 1.8% as the weaker yen drew investors to the country’s stock market.

—Karen Langley contributed to this article.

Write to Anna Hirtenstein at anna.hirtenstein@wsj.com

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