Stocks rise Tuesday after strong earnings reports and Treasury yields stabilize: Live updates - CNBC

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Traders work on the floor of the New York Stock Exchange (NYSE), July 26, 2023.

Brendan McDermid | Reuters

Stocks rose Tuesday as investors focused on a fresh slate of earnings reports, and traders monitored the latest moves in Treasury yields.

The Dow Jones Industrial Average gained 241 points, or 0.7%. The S&P 500 and the Nasdaq Composite climbed 0.7% each.

Coca-Cola reported earnings and revenue that topped estimates, sending the stock up about 3%. Spotify, meanwhile, popped 10% after the audio streaming giant posted third-quarter results that beat expectations.

General Motors shares ticked down 2.4% following better-than-expected third-quarter results. The company pulled its full-year outlook amid rising costs due to the United Auto Workers union strikes, however.

Alphabet and Microsoft are among companies posting results after the market closes. Other tech names reporting this week include Amazon and Meta.

But even if the roster of tech names reporting earnings this week beat Wall Street expectations, valuations for the broader field of these firms remain too high, according to Bahnsen Group chief investment officer David Bahnsen.

"No matter what results we see from big tech earnings this week, the results won't justify their outlandish valuations," Bahnsen said. "Even with the declines in big tech stock prices over the past three months, big tech stocks are still too expensive and are priced for perfection and then some, and that's a dynamic that is not likely to end well."

Around 150 S&P 500 companies are slated to report this week. Thus far, the season is off to a solid start. Roughly 23% of S&P 500 companies have already reported earnings, and 77% of them have posted earnings surpassing analysts' expectations, according to FactSet.

Wall Street is coming off a mixed session as investors continue to watch the U.S. 10-year Treasury yield, which rose above the 5% mark before falling below that level. Rising yields have raised concerns about the state of the broader economy and pressured the stock market in recent weeks. On Tuesday, the benchmark rate added 1 basis point to 4.846%.