Wall Street ticks up to the cusp of its record heights

General Motors rallied 16.3% after reporting stronger quarterly results than analysts expected, while also raising its forecasts for some full-year financial targets. CEO Mary Barra said it’s moving quickly to reduce its losses in 2026 and beyond for its electric-vehicle business, as “it is now clear” that EV adoption will be lower than planned.

RTX, the aerospace and defense company, and Danaher, the life sciences and diagnostics company, jumped nearly 8% after delivering better profit for the latest quarter than analysts expected. Coca-Cola rose 3.8% after likewise topping Wall Street’s profit expectations.

Warner Bros. Discovery leaped 10.8% after the company said it’s now considering other options besides its previously announced split of Discovery Global off Warner Bros. that could be more profitable for shareholders. The company said it made the move after hearing from “multiple parties” interested in either the entire company or Warner Bros.

Keeping the market in check were drops for some Big Tech stocks, which lost momentum following their own rallies. A 1.8% drop for Google parent Alphabet from its all-time high was among the heaviest weights on the S&P 500. Broadcom fell 2.1%.

Other big recent winners in financial markets also took a pause. The price of gold fell 5.4% from its latest record, dropping back to $4,125.80 per ounce. It’s still up 56.2% for the year so far.

The pressure is on companies to show that their profits are growing following a torrid rally of 35% for the S&P 500 from a low in April. It’s one way they can justify their high stock prices amid criticism that they’re too expensive.

Corporate earnings reports also have gained importance because they provide details on the strength of the U.S. economy when the U.S. government’s shutdown has delayed important economic updates. That’s making the job of the Federal Reserve more difficult, as it tries to decide whether high inflation or the slowing job market is the bigger issue for the economy.

Despite the shutdown, the Commerce Department will release its consumer prices report on Friday, which could help guide the Fed’s interest rate policy. It’s the government’s first data release since the shutdown began on Oct. 1.

In stock markets abroad, indexes rose across much of Europe and Asia.

Japan’s Nikkei 225 added 0.3% and crept closer to the 50,000 level as conservative lawmaker Sanae Takaichi became the country’s prime minister. Investors expect her to push for lower interest rates and other policies that could help the market.

Indexes rose 1.4% in Shanghai and 0.7% in Hong Kong amid expectations that President Donald Trump will meet with Chinese President Xi Jinping later this month during a regional summit. That’s raised hopes for an easing of trade tensions between the world’s biggest economies.

In the bond market, the yield on the 10-year Treasury eased to 3.96% from 4.00% late Monday.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.