Stocks are mostly higher on Wall Street as traders prepare for the return of economic data and corporate earnings after the year-end holidays. In the early going on Tuesday, the S&P 500 was up 0.4 percent. Weakness in a few large technology companies limited the Nasdaq’s gain to less than 0.1 percent. Bond yields have continued to rise. The yield on the 10-year Treasury note increased to 1.67 percent from 1.63 percent the previous day. European markets were also higher, while Asian markets ended the day mixed. On Thursday, Walgreens, Constellation Brands, and Conagra will report their most recent quarterly earnings.
Despite concerns about an increase in coronavirus cases, global stocks were mostly higher on Tuesday.
In early trading, France’s CAC 40 rose 0.7 percent to 7,266.59, while Germany’s DAX rose 0.3 percent to 16,064.91. The FTSE 100 in the United Kingdom rose 1.2 percent to 7,475.46. The Dow industrials future contract was 0.2 percent higher, and the S&P 500 future contract was also 0.2 percent higher.
The Nikkei 225, Japan’s benchmark index, rose 1.8 percent to 29,301.79 on Tokyo’s first trading day of 2022. Stocks rose in Australia, South Korea, and Hong Kong, but fell in Shanghai.
Toyota Motor Corp. increased by 6.1 percent, while Sony Corp. increased by 3.4 percent.
Finance Minister Shunichi Suzuki and other dignitaries rang a bell to signal the start of trading at the Tokyo Stock Exchange. Women continued the tradition of attending the year’s opening ceremony in colorful kimono at the smaller exchange in Osaka, western Japan.
Evergrande, a troubled Chinese developer, announced that it had been ordered to demolish a 39-building resort in the southern province of Hainan. The company’s shares were suspended from trading on Monday but resumed trading on Tuesday, gaining 1.9 percent.
Evergrande is in debt to the tune of $310 billion, and the decision to demolish the resort was a further blow to the company’s finances.
Evergrande Group did not provide an explanation, but according to news reports, the government of Danzhou, a city on the southern island province of Hainan, found it to be improperly built and in violation of urban planning law.
Tighter official restrictions on the use of borrowed money by China’s real estate industry have raised concerns about potential defaults and a financial crisis. Chinese regulators have attempted to reassure investors that any potential impact on financial markets will be mitigated.
The Hang Seng Index in Hong Kong rose by less than 0.1 percent to 23,289.84. The Shanghai Composite fell 0.2 percent to 3,632.33 points.
The S&P/ASX 200 index in Australia rose nearly 2.0 percent to 7,589.80. The South Korean Kospi rose by less than one point to 2,989.24.
Asia has experienced fewer coronavirus infections and deaths than the United States and parts of Europe. However, with reports of faster spreading omicron, there is growing concern about an impending surge.
“While sentiments may attempt to ride on Wall Street’s optimism, market participants in the region have generally been more cautious in taking on more risks,” said Yeap Jun Rong, market strategist at IG in Singapore.
On Monday, the S&P 500 gained 0.6 percent to 4,796.56, while the Dow gained 0.7 percent to 36,585.06. Both indexes surpassed their previous highs set last Wednesday. The Nasdaq composite index increased 1.2 percent to 15,832.80.
Smaller company stocks rose as well. The Russell 2000 increased by 1.2 percent to 2,272.56.
Despite a recent spike in COVID-19 cases caused by the virus’s fast-spreading omicron variant and expectations that the US Federal Reserve will begin raising interest rates later this year to combat rising inflation, recent solid gains suggest investors remain bullish on stocks.
During the first week of the new year, investors will be watching for several key pieces of economic data, including the Labor Department’s jobs report on Friday. On Tuesday, the Institute for Supply Management will provide an update to investors on the manufacturing sector, and on Thursday, it will provide an update on the services sector.
On the New York Mercantile Exchange, benchmark US crude rose 32 cents to $76.40 per barrel in electronic trading. On Monday, it rose 87 cents to $76.08 per barrel. Brent crude, the international benchmark, gained 30 cents to $79.28 per barrel.
The US dollar rose in currency trading to 115.84 Japanese yen from 115.31 yen. The euro is now worth $1.1298, up from $1.1296.