NEW YORK (AP) — U.S. stock indexes are edging higher Wednesday morning as investors cheer Apple’s latest quarterly report, which included strong iPhone sales and a forecast that was better than expected. Private payroll processor ADP said private businesses added 219,000 jobs in July, a strong economic signal that sent bond yields higher. The yield on the 10-year Treasury note rose above 3 percent for the first time in three months.
KEEPING SCORE: The S&P 500 index added 4 points, or 0.2 percent, to 2,820 as of 10 a.m. eastern time. The Dow Jones Industrial Average edged up 19 points, or 0.1 percent, to 25,434. The Nasdaq composite climbed 42 points, or 0.6 percent, to 7,714.
The Russell 2000 index of smaller-company stocks was little changed at 1,671. Most of the stocks on the New York Stock Exchange traded lower.
The S&P 500 index rose 3.6 percent in July in spite of the trade war between the U.S. and China. The markets have gotten a lift from strong company earnings as well as efforts by the U.S. and European Union to resolve their trade differences, which have also led to import taxes.
JOBS SURVEY: ADP said hiring picked up in June, suggesting employers are still able to find the workers they need despite the low unemployment rate. The survey showed strong hiring by health care providers, hotels and restaurants and manufacturers. The federal government will release a jobs report Friday that covers hiring by private and public employers.
Bond prices sank. The yield on the 10-year Treasury note rose to 3 percent from 2.96 percent.
The increase in bond yields benefited bank stocks. Higher yields force interest rates on mortgages and other loans higher, making it more profitable for banks to lend money. Bank of America jumped 1.8 percent to .45 and Citigroup rallied 1.2 percent to .78.
APPLE EARNINGS: Apple said the average selling price for the iPhone jumped 20 percent in its latest quarter and its third-quarter profit and sales both surpassed analyst projections. Apple’s third fiscal quarter is usually its weakest. The company’s fourth-quarter revenue forecast also topped Wall Street estimates.
Apple surged 4.5 percent to .74. That put the most valuable publicly traded U.S. company on track to set another all-time high. Market watchers have also been wondering if Apple will soon become the first company to surpass trillion in value. It’s currently at about billion.
BURNING THROUGH EARNINGS: SodaStream jumped 22.9 percent to .34 after the maker of beverage carbonation systems raised its annual forecasts following a strong quarterly report. Cheesecake Factory said higher insurance and legal costs hurt its earnings and the stock fell 14 percent to .17.
Clothing maker Hanesbrands plunged 17.4 percent to .38 after it posted a smaller-than-expected profit and said Target won’t renew a contract for an exclusive line of Champion clothing when the deal expires in January 2020. Big Five Sporting Goods dropped 11.2 percent to .73 after it said sales weakened at the end of its second quarter as bad weather hurt sales of camping and water sports items.
Medicaid services company Molina Healthcare surged 16.6 percent to .41 and music streaming company Pandora added to its big rally this year as it gained 22.3 percent to .24.
TRADE QUESTIONS: Bloomberg News reported that the Trump administration is considering a 25 percent tax on billion in imports from China, above the 10 percent the administration has been considering. China says it will retaliate if that happens. A day earlier, stocks got a boost from a report the two sides were hoping to hold more talks to resolve the trade war. Both countries put tariffs on billion in goods in early July.
FED AHEAD: The Federal Reserve will wrap up its latest meeting Wednesday afternoon. Investors don’t expect it to raise interest rates, but it’s widely expected to boost rates again in September and the Fed has said it intends to raise rates one more time later in the year.
ENERGY: Benchmark U.S. crude dropped 1.6 percent to .63 per barrel in New York. Brent crude, used to price international oils, fell 1.7 percent to .95 per barrel in London.
CURRENCIES: The dollar rose to 111.89 yen from 111.83 yen. The euro fell to .1680 from .1697.
OVERSEAS: Britain’s FTSE 100 dropped 1 percent and Germany’s DAX fell 0.5 percent 795. The French CAC 40 dipped 0.1 percent.
Japan’s Nikkei 225 index rose 0.9 percent and South Korea’s Kospi added 0.5 percent. In Hong Kong, the Hang Seng index dropped 0.9 percent.
AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at https://apnews.com/search/marley%20jay