Stocks Higher on EU Deal, Earnings, but Techs Trail…..

U.S. equities were mixed following upbeat earnings from some market heavyweights and optimism over European leaders agreeing to the terms of a 750 billion euro recovery package. However, tech stocks pared yesterday’s rally, pressuring the Nasdaq. Dow member IBM bested earnings and revenue forecasts and Coca-Cola posted results that beat the Street and said it continues to see sequential improvement from the global disruption from the pandemic. Meanwhile, Lockheed Martin also posted better-than-expected profits and revenues, while also upping its full-year guidance. Treasury yields were modestly lower as bond prices nudged higher and the U.S. dollar lost solid ground, with the economic calendar again void of any major releases today, while crude oil prices rebounded and gold continued to touch highs not seen since mid-2011. European equities closed mostly higher on optimism from the EU summit, while markets in Asia were also higher.

The Dow Jones Industrial Average rose 160 points (0.6%) to 26,840, the S&P 500 Index increased 5 points (0.2%) to 3,257 while the Nasdaq Composite lost 87 points (0.8%) to 10,680. In moderate volume, 898 million shares were traded on the NYSE and 5.3 billion shares changed hands on the NASDAQ. WTI crude oil added $1.00 to $41.92 per barrel and wholesale gasoline gained $0.05 to $1.28 per gallon. Elsewhere, the Bloomberg gold spot price jumped $22.43 to $1,840.20 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—was down 0.7% at 95.20.

Economic calendar empty again, Treasury yields modestly lower…..

Treasuries were slightly higher with the economic calendar empty for a second-straight day. The yields on the 2-year and 10-year notes, along with the 30-year bond, all ticked 1 basis point lower to 0.14%, 0.60% and 1.30%, respectively.

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