The Dow Jones Industrial Average rose 1.2% Tuesday morning, closing in on the 54,000 level after Monday's record high. Easing oil prices tied to potential U.S.-Iran talks and an earnings beat from Dow component Caterpillar accompanied the gains, while the S&P 500 and Nasdaq composite also advanced.
The Dow Jones Industrial Average climbed 1.2% in morning trade Tuesday, moving toward the 54,000 level. That followed Monday's record high close. The rally extended across the broader market, as the S&P 500 increased 0.9%. The Nasdaq composite, meanwhile, climbed 1.5% and reclaimed its 50-day moving average.
Iran talks send oil sliding
Treasury Secretary Scott Bessent said the U.S. and Iran could reach a deal Tuesday or Wednesday to reopen the Strait of Hormuz. According to Bessent: "we may have a deal today or tomorrow to open the strait", he said in an interview on CNBC's "Squawk Box."
As a result, West Texas Intermediate crude futures slid more than 5% to trade around $76 a barrel. The 10-year Treasury yield declined 5 basis points to 4.64% alongside the drop in crude.
Caterpillar tops second-quarter estimates
Dow component Caterpillar also moved: CAT stock surged more than 11% premarket after topping second-quarter earnings forecasts. The heavy-machinery maker reported a $72 billion backlog, up 92% from a year ago. Adjusted earnings per share came in at $8.17, up 73% from a year ago and 31% ahead of $6.22 forecasts, according to FactSet.
Revenue told a similar story: Caterpillar's sales surged 24% from a year ago to $20.543 billion, smashing estimates of $19.335 billion.
Source: Investor's Business Daily
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