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Close Update: Wall Street Rallies for Second Day With Dow at One-Month High on Earnings Growth


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Wall Street rallied for a second consecutive day on Tuesday as investors turned their attention to earnings season and positive quarterly results that lifted the benchmarks to multi-week highs.

The Dow Jones Industrial Average was at the best level in a month, with more than two thirds of its components gaining. UnitedHealth ( UNH ) was up 3.6% after its better-than-expected results. General Electric ( GE ) posted a 3.5% rise amid reports its Jenbacher unit is attracting interest from Cummins ( CMI ) and CVC Capital Partners.

Tech names were also broadly positive, with the sector up about 2% for the day on the S&P 500 as a surge in Netflix ( NFLX ) after its earnings lifted the key FANG stocks and helped the Nasdaq Composite outperform the other measures. Facebook ( FB ), Alphabet (GOOGL) and Amazon.com (AMZN) all advanced in the session.

Earnings have put investors back in a buying mood, with all the S&P's sectors in the green by the close. Of the 44 S&P companies that have reported earnings so far, 77% have beat estimates on earnings and 84% have topped on sales, according to the Earnings Scout.

The cheery reports helped investors look past geopolitics, with President Donald Trump meeting Japanese Prime Minister Shinzo Abe in discussions that were set to focus on North Korea and trade issues, according to the White House.

In economic data, March housing starts were up 6.7% last month to a better-than-expected seasonally-adjusted annual rate of 1.319 million. Permits increased 4.6% to 1.354 million. Industrial production was up 0.5% in March, beating expectations for 0.4%, while capacity utilization improved to 78% from 77.7%

Wednesday's calendar has the weekly Mortgage Bankers' Association applications index at 7 am ET with the Fed's Beige Book for its May meeting at 2 pm. The earnings calendar has American Express (AXP) and Morgan Stanley (MS), among others.

Here's where the markets stood by the close:

US MARKETS

Dow Jones Industrial Average was up 213.59 points (+0.87%)

S&P 500 was up 28.55 points (+1.07%)

Nasdaq Composite Index was up 124.81 points (+1.74%)

GLOBAL SENTIMENT

FTSE 100 was up 0.39%

Nikkei 225 was up 0.06%

Hang Seng Index was down 0.83%

Shanghai China Composite Index was down 1.39%

UPSIDE MOVERS

(+) ARQL (+17.04%) Licensed derazantinib to Basilea Pharma for commercialization in China

(+) GWPH (+11.24%) Cannabidiol-based drug receives FDA backing

(+) ROKU (+8.96%) Launches ESPN+ on platform

(+) DMPI (+2.8%) Unveils positive updates on two ongoing clinical trials of VAL-083

(+) DBX (+2.79%) Rated buy with $35 price target at Canaccord

(+) DPZ (+2.07%) Oppenheimer raised price target to $245 from $240

DOWNSIDE MOVERS

(-) NLST (-27.77%) Gets US ITC to probe SKY hynix in patent infringement

(-) BLCM (-12.6%) Announced 7 million share stock offering

(-) SEAC (-7.17%) Beat Q4 sales and EPS estimates, but issued downbeat guidance

(-) LADR (-4.34%) Related Cos. may nominate board candidates after withdrawing acquisition offer, Bloomberg says

(-) TSLA (-1.21%) Temporarily halts Model 3 output

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.



This article appears in: Investing , Stocks
Referenced Symbols: UNH , GE , CMI , NFLX , FB


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