Wall Street Near Highs as Hasbro Surges and Coca-Cola Weighs/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ US stocks hovered near record levels as investors weighed mixed earnings from major companies. Hasbro surged on strong results and a large buyback plan, while Coca-Cola slipped on a weaker outlook. Falling Treasury yields boosted hopes the Federal Reserve may cut interest rates later this year.
US Stocks Near Records – Quick Looks
- S&P 500 trades just below its all-time high
- Dow Jones rises to another record
- Hasbro jumps nearly 8% on earnings and buyback plan
- Coca-Cola slips after revenue growth disappoints
- Treasury yields fall on weak retail sales data
- Rate-cut expectations increase for later in 2026
Deep Look: Wall Street Near Highs as Hasbro Surges and Coca-Cola Weighs
NEW YORK (AP) — US stocks flirted with record highs Tuesday as investors sifted through a mixed round of corporate earnings and growing expectations that the Federal Reserve may cut interest rates later this year following signs of a slowing consumer.
The S&P 500 edged up 0.1% in late morning trading, briefly moving just above its all-time high set a few weeks earlier. The Dow Jones Industrial Average climbed 253 points, or 0.5%, to another record, while the Nasdaq Composite was little changed.
Bonds Rally on Weak Consumer Data
Moves were more pronounced in the bond market. Treasury yields slid after a government report showed US retailers posted weaker-than-expected sales at the end of 2025. Shoppers spent roughly the same amount in December as in November, falling short of economists’ forecasts for modest growth.
Because consumer spending is the backbone of the US economy, the report raised concerns that momentum may be fading. The data arrived ahead of two closely watched reports later this week: Wednesday’s update on the job market and Friday’s consumer inflation reading.
Those reports will factor heavily into decisions by the Federal Reserve, which has paused interest-rate cuts after easing policy last year. Persistently high inflation could keep rates on hold, but signs of economic weakening may pressure the Fed to resume cuts sooner.
Following Tuesday’s retail sales data, traders increased bets that the Fed could deliver three or more rate cuts this year, according to CME Group data, though expectations for two cuts remain dominant.
The yield on the 10-year Treasury fell to 4.14% from 4.22% late Monday.
Earnings Drive Individual Stocks
Corporate earnings produced sharp moves in individual stocks.
Hasbro jumped 7.9% after the toy maker beat analysts’ expectations for both profit and revenue. The company cited strong demand for its Magic: The Gathering franchise and announced plans to return up to $1 billion to shareholders through stock buybacks.
Coca-Cola slipped 1.4% after revenue growth for the latest quarter missed forecasts. Investors were also disappointed by the company’s outlook for an underlying growth metric, whose midpoint fell below expectations.
S&P Global sank 6.9% after issuing a profit forecast for the coming year that trailed analysts’ estimates. The company, known for its influential stock indexes, has been under pressure from concerns that artificial intelligence-driven competitors could erode demand for its data services.
DuPont rose 3.5% after reporting stronger-than-expected quarterly results and issuing an upbeat profit forecast for 2026.
Media Deal Speculation
Outside of earnings, Warner Bros. Discovery climbed 2% after Paramount said it increased its offer to acquire the company. Paramount pledged to raise its $30-per-share bid by 25 cents for each quarter the deal remains unfinished beyond this year, signaling confidence in regulatory approval.
Paramount also said it would pay $2.8 billion to help Warner Bros. Discovery exit its existing buyout agreement with Netflix. Paramount’s shares rose 1.5%, while Netflix gained 3.1%.
Global Markets
Overseas, markets in Asia posted solid gains. Japan’s Nikkei 225 surged 2.3% to another record, extending a rally sparked by expectations that a newly elected parliament will allow the prime minister to advance tax cuts and other pro-growth measures.
Other Asian markets posted more modest gains, while European indexes were mixed.
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