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

Stocks continued to trade higher on Wall Street Tuesday as more companies released their quarterly earnings reports for the second quarter.

The S&P 500 was 56.78 points or 1.485 to 3,887.63 as of 10:25 a.m. Eastern time zone. The Dow Jones Industrial Average was up 423.42 points or 1.36% to 31,496.03. The Nasdaq Composite was 147.79 points or 1.30% at 11,507.84.

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Stocks have fallen around 20% so far this year amid concerns about rising interest rates and high inflation, which puts an even brighter spotlight than usual on how much profit companies are making. If earnings increase, it would provide much-needed support for markets. But if CEOs warn about troubles ahead, another plunge may be on the way.

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Companies from various sectors are releasing their earnings reports for the second quarter, broadening out from the banks that dominated the earliest part of the reporting season. Oilfield services company Halliburton added 1.6% after it reported stronger profit and revenue for the spring than analysts expected. Health care giant Johnson & Johnson added 0.9% after beating market expectations.

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However, IBM fell 6.6% after reporting stronger revenue and earnings beating market estimates. The company’s profit margins fell short of some analysts’ expectations amid worries about how the dollar’s strength is undercutting the value of revenue made abroad in other currencies.

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Crude oil prices fell around 1%, which provided some relief across the market. According to the latest results from Bank of America’s monthly survey of global fund managers, expectations for economic growth and profits have plunged. That has them sitting on their highest cash levels since 2001 and their lowest allocations to stocks since 2008.

The European Central Bank is likely to hike interest rates for the first time in 11 years in hopes of knocking down high inflation.

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The Federal Reserve has already increased interest rates three times this year and by higher amounts each time. Next week, it will announce its next increase and the only question among investors is whether it will go with another increase of 0.75 percentage points or a monster hike of a full point.

In energy trading, benchmark U.S. crude fell 1% to $98.42 per barrel. Brent crude, the international standard, lost 1.2% to $105.04.