Stocks rise as GM, others post solid earnings; Peloton drops

NEW YORK (AP) — Stocks rose slightly in morning trading Wednesday, recovering some of the losses the market experienced the day before. Technology shares, where much of the selling occurred on Tuesday, were among the better performers.

The S&P 500 index was up 0.3% as of 11:30 a.m. Eastern. The Dow Jones Industrial Average rose 0.2% and the Nasdaq Composite rose 0.4%.

Apple was one of the more notable gainers after falling the day before. The electronics maker was up 1.7%.

Investors remain focused on earnings season, which has been better than expected so far. More than half of the companies in the S&P 500 have reported their results so far this earnings season, which show profit growth of 54%, according to FactSet.

General Motors shares rose about 4% after the company posted a solid quarterly profit compared to a year earlier, but also affirmed its full-year outlook despite the automaker — like much of its competition — having to contend with a chip shortage that is impacting production.

Video game maker Activision and apparel company Under Armour also rose after reporting better-than-expected results.

Facebook shares were little changed after the company announced its independent oversight board would continue to ban former President Donald Trump from the platform. Trump's account had been suspended indefinitely after the January 6 insurrection at the capital, where his rhetoric has been blamed for the riots. The board did say that the company must decide if the ban is permanent.

Shares of exercise equipment company Peloton dropped 10% after the company voluntarily recalled its treadmills after dozens of reports of injuries to children and pets, and at least one death. The $4,200 treadmill was the company's biggest expansion beyond its traditional exercise bike program.

Later this week, investors' attention will turn to the jobs report for April. Economists expect the data to show employers hired 975,000 workers last month as the economy accelerated out of the pandemic and vaccines rolled out nationwide. The unemployment rate is expected to drop to 5.8% from 6%.

A private sector jobs report released by payroll processing company ADP found that private employers created 742,000 jobs last month, which was less than the 896,000 jobs that were expected by economics.

Bond yields were stable on Wednesday, with the 10-year Treasury note trading at a yield of 1.60%, effectively unchanged from the day before.