Stock Market News, July 18, 2023: Indexes Finish Higher as Bank Shares Rise

Major U.S. stock indexes rose Tuesday as investors eyed fresh earnings from Wall Street banks to see if the financial sector’s strong run would continue. Read today's full markets roundup here.

Bank stocks moved higher, with an index of regional banks advancing. Morgan Stanley shares added more than 6% after executives said client activity strengthened during the quarter. Bank of America climbed after reporting a 19% earnings rise.

PNC Financial Services' revenue fell short of estimates. Bank of New York Mellon and Charles Schwab also released results, with the latter's shares flying higher. One theme this quarter: deposit outflows.

U.S. monthly retail sales data came in below expectations. The Journal's Dion Rabouin discussed the latest report in a video earlier today.

As of Tuesday's close:

The S&P 500, which closed Monday at its highest level since April 2022, moved even higher, as did the Nasdaq Composite. The Dow Jones Industrial Average adding more than 300 points, reaching a new 52-week closing high.

U.S. government-bond yields moved lower. The yield on the 10-year Treasury note declined to 3.788%, from 3.796% Monday.

In non-financial stocks, shares of Microsoft jumped about 4% after the company made announcements about artificial-intelligence-related products.

Overseas indexes were mixed. Europe’s Stoxx 600 was up 0.6%. Asian indexes were mostly lower, with the Hang Seng leading losses, amid concerns about China’s property sector.

Brent crude oil rose 1.4%, halting two days of declines prompted by concerns about China’s economy. The international oil benchmark last week breached $80 a barrel for the first time since April; it settled just below that level today.

—By Will Horner and Jack Pitcher