Stocks close higher: S&P 500 up 0.6%, Constellation jumps 12% on Google deal, 10-year yield 5.27%

U.S. stocks finished higher Tuesday, with large caps rising and small caps lagging. On Yahoo Finance closing prices, the S&P 500 rose 0.58% to 7,818.93, the Dow Jones Industrial Average gained 0.49% to 51,521.28, and the Nasdaq Composite added 0.45% to 27,599.79. The Russell 2000 fell 0.59% to 2,830.30.

Small caps went the other way

The split matters. The Russell 2000 is the index most sensitive to borrowing costs, because smaller companies carry more floating-rate debt. It slipped while the S&P 500 climbed, even though yields eased: the 10-year Treasury ended at 5.27%, down from 5.31% on Monday, and the 2-year at 4.79%, down from 4.84%, on the Treasury's official curve. The 30-year was 5.64%. A drop of four or five basis points is small, and with the 2-year still about 90 basis points above the 3.88% fed funds rate on our markets board, the bond market is still pricing in tighter policy. The Fed minutes arrive Wednesday.

Constellation leads on the Google deal

Constellation Energy was the day's standout, closing at $300.40, up 12.25% from Monday's $267.62. It had been indicated about 6% higher before the open. The Wall Street Journal reported that Google and Constellation struck a sweeping nuclear power deal, and Reuters headlined it as a 3.6-gigawatt agreement. We could not open either article in full, so we are not quoting terms beyond that headline figure. The move follows a pattern we have covered in our earlier Constellation story: large technology buyers are paying for long-term access to existing power.

Freight gives some back

C.H. Robinson fell 3.95% to $135.05, extending Monday's drop after the takeover offer for rival RXO, which ended nearly flat at $28.54, down 0.38%, after Monday's jump. Terms are in our earlier story.

Energy and the Strait of Hormuz

Front-month WTI crude settled near $89.79 a barrel on Yahoo Finance, with gold futures at $4,191.10. An Investing.com headline said oil turned higher as improving Middle East flows were offset by attacks near Hormuz. CNBC reported that nearly 20 commercial ships have come under attack over the past month and that Hormuz crude shipments averaged about 10.3 million barrels a day in the week ended Saturday, about 23% below the prewar 13.5 million, citing Kpler. Separately, Fox Business reported Energy Secretary Chris Wright saying truckers could see diesel relief as soon as Saturday after an executive order. We have not seen the order itself.

What is next

The Fed minutes come Wednesday. Jobless claims follow Thursday (forecast 200,000 against 197,000 previously), and September CPI arrives October 14 with core expected at 0.3% on the month. See our economic calendar.

Sources: Yahoo Finance closing prices, U.S. Treasury, WSJ, Reuters, CNBC, Fox Business, Investing.com, Chronicle markets board. Index closes may be revised by the exchanges. This is market information, not investment advice.