Better-than-expected corporate results lifted the S&P 500 to its biggest advance since September.
The rise comes as U.S. stocks have struggled to maintain a rally in recent trading sessions. Before Tuesday, the S&P
500 hadn't risen 0.5% or more in October.
The index has alternated between gains and losses each trading session for nearly two weeks, and the declines have
outpaced the advances. On Monday, the S&P 500 closed at its lowest in more than a month.
Shares of Netflix jumped $18.99, or 19%, to $118.79 after the company posted a surge in new subscribers, while
Goldman Sachs Group rose 3.63, or 2.1%, to 172.63 after it beat expectations for both profit and revenue.
Investors' expectations for bank stocks already had improved in recent sessions after lenders, including J.P. Morgan
Chase and Citigroup, exceeded analysts' estimates in reporting quarterly results.
Health-care stocks were among the biggest gainers, with health-care companies in the S&P 500 rising 1.1%.
UnitedHealth Group climbed 9.26, or 6.9%, to 143.39 after the health insurer boosted its earnings
guidance for the year and reported strong profit growth in the prior quarter.
Biotechnology stocks also were big gainers, with the Nasdaq Biotechnology Index advancing 1.4%.
"Biotech has been hit so hard that whenever we see a rebound in the market like we are today, it gives them a small
bounce after getting so hammered," said Mohit Bajaj, director of ETF trading solutions at broker WallachBeth Capital
So far this month, biotech stocks are down nearly 7%, compared with the broader S&P 500's 1.3% decline.
Tempering broader stock-market gains, however, shares of International Business Machines fell 4.05, or 2.6%, to 150.72
after the company posted declines in revenue and profit, while shares of Visa dropped 57 cents, or 0.7%, to 81.58 after
its chief executive said he would step down.
The WSJ Dollar Index continued to weaken Tuesday, falling 0.2%. Analysts attributed the move to recent disappointing
U.S. economic data and mixed messages from Federal Reserve officials on the course of interest rates.
A "bout of Fed confusion" has taken the steam out of the recent dollar rally, said Viraj Patel, foreign-exchange
strategist at ING.
Fed Vice Chairman Stanley Fischer on Monday said the bank is near its official policy goals, while a number of other
Fed officials are building a case to skip over the November policy meeting and raise rates in December.
U.S. consumer prices, which Tuesday showed inflation slowly rising, will play a part in that decision. The consumer-
price index, which measures what Americans pay for everything from cars to dentistry, rose a seasonally adjusted 0.3% in
September from a month earlier, according to the Labor Department. That met the expectations of economists surveyed by
The Wall Street Journal.
The yield on the benchmark 10-year U.S.Treasury note fell to 1.748%, from 1.766% on Monday. Yields move inversely to
U.S.-traded crude oil rose 0.7% to $50.29 a barrel.
The Stoxx Europe 600 advanced 1.5%.
Shares in Asia rose, as Hong Kong's Hang Seng Index and the Shanghai Composite more than reversed Monday's losses, up
1.5% and 1.4%, respectively. Japan's Nikkei Stock Average added 0.4%.
Aaron Kuriloff contributed to this article.
Write to Riva Gold at email@example.com and Corrie Driebusch at firstname.lastname@example.org
(END) Dow Jones Newswires
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