Stocks rise as Turkish lira steadies

Traders
react near the end of the day on the floor of the New York Stock
Exchange in New York
Thomson
Reuters

Stocks rose Tuesday as investors turned from a currency crisis in
Turkey to solid economic data and strong earnings. The dollar
and Treasury yields extended gains.

Here’s the scoreboard:

Dow Jones industrial
average: 25,296.43 +108.73 (+0.43%)

S&P
500: 2,841.04 +19.11
(+0.68%)

Nasdaq
Composite: 7,870.47 +50.77 (+0.65%)

1. After a sharp sell-off slashed more than a fifth
   of its value, Turkey’s
   currency began to rebound. But structural
   issues behind the ailing economy and an
   escalating conflict between Washington and Ankara kept the
   lira near historic lows. Turkish President Recep Tayyip
   Erdogan said the country would boycott US electronic goods to
   retaliate against sanctions the Trump administration imposed
   earlier this month.
2. Investors are still on edge with
   concerns the weakening lira could lead to economic turmoil in
   other emerging markets. Several currencies began to
   recover after weakening Monday. But the Indian
   rupee sold off for a second day, sliding past 70 per
   dollar to a record low.
3. In a sign that rising borrowing costs haven’t curbed
   American demand for credit,
   household debt in the US climbed to a record $13.3
   trillion in the second quarter. That’s up $454 billion
   from a year ago and marks a 16th consecutive month of
   increases.
4. Cryptocurrencies spiraled
   to fresh 2018 lows. A broad sell-off has
   pressured the value of the digital currency market to below
   $200 billion for the first time this year. 
5. Earnings season rolls on. Home
   Depot beat Wall Street expectations after
   stronger-than-expected sales. Tapestry
   reported a 31% rise in revenue.

And a look at the upcoming economic calendar:

• The US reports retail sales and new housing construction
  numbers.
• Walmart, Macy’s, Cisco, and Tencent report earnings.