NEW YORK (AP) - Stocks are rising Tuesday as more companies report earnings. Ameriprise, a financial planning company, rose after posting earnings that were better than investors expected. The company also announced it would buy back more of its own stock.
NEW YORK (AP) — Stocks are rising Tuesday as more companies report earnings. Ameriprise, a financial planning company, rose after posting earnings that were better than investors expected. The company also announced it would buy back more of its own stock.
KEEPING SCORE: The Standard & Poor's 500 index rose eight points, or 0.4 percent, to 1,877 as of 12:04 p.m. Eastern. The Dow Jones industrial average gained 85 points, or 0.5 percent, to 16,534. The Nasdaq composite rose 20 points, or 0.5 percent, to 4,088.
DIESEL POWER: Cummins, a maker of large diesel engines, rose $4.69, or 3.2 percent, to $149.86, after the company's first-quarter earnings beat analysts' expectations. The company said its revenue in North America rose 25 percent
BUY BACK AND BEAT: Ameriprise Financial rose $6, or 5.8 percent, to $109.51 after the company reported first quarter earnings that exceed Wall Street's expectations and announced that its board had authorized the repurchase of an additional $2.5 billion in stock.
THE EARNINGS GAME: About half of the companies in the S&P 500 have reported earnings so far, according to data from S&P Capital IQ. Earnings are currently expected to grow by 1 percent in the period, compared with growth of 5.2 percent in the same period as a year ago, and almost 8 percent in the fourth quarter.
As more companies have reported earnings, investors' expectations have risen. Two weeks ago, companies were forecast to report a drop in earnings.
"Companies have learned a new religion," said Chris Bertelsen, chief investment officer at Global Financial Private Capital, a wealth management company. "That is, underpromise and overdeliver."
KORS FOR CONCERN: Coach fell $4.29, or 8.5 percent, to $46.12 after the maker of luxury handbags and other accessories said its profit fell in the first three months of the year. Profit declined as sales in North America came under pressure from competitors like Michael Kors Holdings.
ENERGY GAINS: Consol Energy led energy stocks higher. The sector led gains for the S&P 500, climbing 1.2 percent, after reporting strong earnings. Consol Energy rose $2.07, or 4.9 percent, to $44.02 after the company said that it earned $116 million in the first quarter, helped in part by growth from its division that focuses on oil and gas exploration and production.
FED MEET: The Federal Reserve starts a two-day policy meeting on Tuesday. Most economists expect that policy makers will further reduce their bond purchases by $10 billion to $45 billion a month. The Fed's stimulus has helped underpin a five-year rally in stocks.
TREASURYS AND COMMODITIES: Bond prices were little changed. The yield on the 10-year Treasury note was unchanged from Monday at 2.70 percent. The price of oil rose 58 cents, or 0.6 percent, to $101.42 a barrel.