Stocks drift higher; Banks gain as rates rise
Stocks are moving slightly higher in midday trading, led by the financial sector.
Banks including Bank of America and Morgan Stanley were rising Tuesday as long-term interest rates moved higher. That gave banks the prospect of earning more money from making loans.
The Dow Jones industrial average rose eight points, less than 0.1 percent, to 16,789 as of noon Eastern time Tuesday. Goldman Sachs rose the most of the 30 stocks in the index.
The Standard & Poor’s 500 index rose two points, or 0.1 percent, to 1,939. The Nasdaq rose 16 points, or 0.4 percent, to 4,337.
Bond prices fell after the government reported that consumer prices rose in May by the most in more than a year. The yield on the 10-year Treasury note rose to 2.64 percent.