US Stock Market: DJIA, S&P500 and Nasdaq green in early trade on Tuesday

US stocks edged higher in morning trading on Wall Street Tuesday as traders see a heavy round of third-quarter earnings reports from big US companies.

The S&P 500 rose 35.13 points or 0.93% as of 10:18 am Eastern time. The Dow Jones Industrial Average rose 130.32 points or 0.41% to 31,629.94. The Nasdaq rose 163.32 or 1.49% to 11,115.93. Smaller company stocks outperformed the broader market. The Russell 2000 jumped 1.7%.

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Bond yields fell sharply. The yield on the 10-year Treasury, which helps determine mortgage rates, declined to 4.08% from 4.23% late Monday. The yield on the two-year Treasury, which often tracks Fed action, fell to 4.41% from 4.50% late Monday.

US crude oil prices jumped 1%. Investors are closely watching the latest round of earnings reports from some big companies. General Motors rallied 2.2% after posting solid returns. United Parcel Service (USP) surged 3% after the package delivery service beat Wall Street’s third-quarter earnings and revenue estimates. Paint maker Sherwin-Williams rose 3.3% after reporting strong financial results.

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Crown Holdings tumbled 19% after reporting lower-than-expected earnings.

Barbeque grill maker Weber jumped 33% after it said BDT Capital Partners is interested in buying the rest of the company.

The latest round of quarterly results is particularly crucial for investors looking for indicators of inflation’s impact on various industries. Prices on everything from food to clothing remain at their highest levels in four decades, putting pressure on companies to hike prices and cut costs, while squeezing consumers.

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The Federal Reserve and central banks around the world have been hiking interest rates to control inflation. That has investors worried about the central bank going too far in trying to slow the economy and instead causing a recession. Investors are looking for clues that the Fed might ease up on rate increase.

London’s FTSE 100 slipped 0.6% as Britain’s third prime minister this year, Rishi Sunak, officially took charge as the UK deals with an economic crisis.

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Germany’s DAX fell 0.8% after the release of a German Business Climate report that was better than expected but overall gloomy. The CAC in Paris gained 0.4%.