Dow Today – Stocks rise for a fifth day, and Bitcoin nears a record high.
U.S. stocks rose on Tuesday, with the S&P 500 gaining 0.7 percent. The benchmark index marked its fifth-consecutive day of gains and is up more than 5 percent since its Oct. 4 low after a slide in September.
The gains mean the S&P 500 is approaching record territory again, now within 0.4 percent of the closing high it reached in early September.
Cryptocurrency prices rose, with Bitcoin touching $64,300, according to Fintech Zoom. On Tuesday, ProShares offered a long-awaited exchange-traded fund on the New York Stock Exchange linked to Bitcoin futures, and Bitcoin has been trading at prices not seen since April, when it briefly traded above $64,800.
Tuesday’s gains came as several high-profile corporate earnings reports came in stronger than expected.
Johnson & Johnson reported that sales grew 10.7 percent to more than $23 billion in the third quarter compared with the same period last year. Shares of the pharmaceutical manufacturer rose 2.4 percent.
Procter & Gamble stock fell about 1.2 percent after the company reported it experienced higher commodity and freight costs during the three months ending in September.
Stock investors shook off commentary from a Federal Reserve official, who signaled that if inflation remains elevated the central bank may need to do more that just slow down its monthly bond purchases, which it is already preparing to do.
“If monthly prints of inflation continue to run high through the remainder of this year, a more aggressive policy response than just tapering may well be warranted in 2022,” Christopher Waller, a governor at the Federal Reserve, said in a speech on Tuesday.
His comment suggested that there could be pressure at the central bank to increase the policy interest rate, the Fed’s more powerful and traditional tool, sooner than many had expected.
Mr. Waller fretted that rapid price gains could last.
“It has not been high for just a month or two — it has been high all year. It is important to acknowledge that,” he said. “I am still greatly concerned about the upside risk that elevated inflation will not prove temporary.”
Oil prices rose on Tuesday, with West Texas Intermediate, the U.S. benchmark, gaining as much as 1.5 percent before settling to $82.96 a barrel. Oil futures are at seven-year highs and are up 70 percent this year amid a global energy crunch that is pushing prices higher for other commodities.
Jeanna Smialek contributed reporting.