Wall Street rallies with Big Tech; banks up with Treasury yields - Reuters

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., January 25, 2022. REUTERS/Brendan McDermid/File Photo/File Photo

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• Summary
• Companies

• Pfizer falls on disappointing forecast
• Coty gains after raising earnings estimates
• Meta Platforms down for fourth straight session

Feb 8 (Reuters) - Wall Street ended higher on Tuesday, lifted by Apple and Microsoft, while a jump in Treasury yields elevated bank stocks ahead of a key inflation reading this week.

The benchmark S&P 500 and the tech-heavy Nasdaq reversed early losses and gained in the latter part of the session, driven by heavyweight growth stocks including Tesla (TSLA.O) and Amazon.com Inc .

The S&P 500 banking index (.SPXBK)rallied as the benchmark 10-year U.S. Treasury yield hit its highest level since November 2019 on mounting expectations the U.S. Federal Reserve will start tightening monetary policy.

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Shares of Bank of America Corp (BAC.N), JPMorgan Chase & Co (JPM.N) and Wells Fargo all gained.

The S&P 500 energy sector index (.SPNY) sank as investors worried the resumption of indirect talks between the United States and Iran could revive an international nuclear agreement and allow more oil exports from the OPEC producer. read more

Upbeat comments from French President Emmanuel Macron about his meeting with Russian President Vladimir Putin over the Ukraine crisis also dented oil prices and reduced anxiety on Wall Street, said Scott Ladner, chief investment officer at Charlotte-based wealth management firm Horizon Investments. read more

"Today's gain is probably due to some of the Macron headlines, but it's also just recognition of the fact that the economy is in pretty good shape, and we probably overdid it a little to the downside," Ladner said.

With Tuesday's rise, the S&P 500 remains down about 5% so far this year, while the Nasdaq has lost about 9%.

U.S. consumer prices data, set to be released on Thursday, is forecast at a four-decade high of 7.3%. The numbers follow strong U.S. labor data last week that added to investor concerns that the Fed will tighten rates faster than thought.

Concerns around aggressive policy tightening by the U.S. central bank, geopolitical tensions in Ukraine and mixed results from Big Tech have weighed on the major U.S. indexes since the start of the year.

According to preliminary data, the S&P 500 (.SPX) gained 37.36 points, or 0.84%, to end at 4,521.23 points, while the Nasdaq Composite (.IXIC) gained 178.79 points, or 1.28%, to 14,194.46. The Dow Jones Industrial Average (.DJI) rose 374.29 points, or 1.05%, to 35,465.42.

Earnings were mixed on Tuesday, with Pfizer Inc (PFE.N)down after the drugmaker's full-year sales forecast for its COVID-19 vaccine and antiviral pills fell short of estimates.

Amgen Inc (AMGN.O) surged after the company announced a buyback of up to $6 billion and forecast earnings would more than double by 2030. read more

Facebook-owner Meta Platforms (FB.O)fell after billionaire investor Peter Thiel decided to step down from the company's board, driving a fourth day of losses in the stock after its bleak forecast last week wiped out billions of dollars in market value. read more

Peloton Interactive Inc (PTON.O)soared despite slashing its revenue forecast as the exercise bike maker said it would replace its chief executive and cut jobs in a bid to revive sagging sales. read more

Coty Inc (COTY.N)jumped after the cosmetics seller raised its earnings forecast for 2022. read more

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Reporting by Bansari Mayur Kamdar in Bengaluru and by Noel Randewich in Oakland, Calif.; Editing by Maju Samuel and David Gregorio

Our Standards: The Thomson Reuters Trust Principles.

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Wall Street rallies with Big Tech; banks up with Treasury yields - Reuters
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