U.S. stocks ended mostly higher on Tuesday, powered by a number of positive earnings, including much stronger-than-expected results from the parent company of Google.
What are the main benchmarks doing?The Dow Jones Industrial Average DJIA, +0.79% rose 197.65 points, or 0.8%, to finish at 25,241.94, as three of its components reported earnings, ending a three-day losing streak.
The S&P 500 index SPX, +0.48% gained 13.42 points, or 0.5%, to close at 2,820.40, with nine of its 11 main sectors closing higher. Telecoms, materials and energy sectors lead the gains, up more than 1%.
The Nasdaq Composite Index COMP, -0.01% which hit a record earlier, pulled back from highs to end marginally lower—off 1.11 points—at 7,840.77.
Read: Tech rally is putting stocks mere points away from ending a lengthy bearish streak
What’s driving the markets?Earnings news dominated the action on Tuesday, as the busiest week of the season continues. Shares of Alphabet Inc. GOOG, +3.53% GOOGL, +3.89% jumped 3.9% a day after it reported results that topped expectations. The stock closed at a record after its biggest one-day percentage jump since October 2017.
Read: Google is a great investor, and Alphabet earnings are showing the results
Google parent Alphabet is one of the so-called FAANG group of stocks, which also includes Facebook Inc. FB, +1.78% Amazon.com Inc. AMZN, +1.51% Apple Inc. AAPL, +0.73% and Netflix Inc. NFLX, -1.47% that have fueled the overall market’s advance over the past several years. The results could provide comfort that the quintet of huge internet and technology stocks still have room to run. Facebook and Amazon are scheduled to report later this week. Facebook FB, +1.78% shares rose 1.8% on Tuesday, hitting a record of their own.
Read: Earnings Watch: 35% of S&P 500 companies set to report in a crazy week
Also read: Facebook earnings: Amid controversy, finances appear bulletproof
The second-quarter earnings season has largely been strong. According to data from Charles Schwab, with 22% of the S&P 500 having reported thus far, 91% of companies have topped earnings expectations, while 75% have come in ahead of revenue forecasts.
Issues surrounding trade remained in focus, however, particularly after President Donald Trump tweeted that tariffs are “the greatest.” Escalating tensions between the U.S. and its major trading partners have been a major concern of investors of late, amid fears that the situation could evolve into a full-blown trade war.
Tariffs are the greatest! Either a country which has treated the United States unfairly on Trade negotiates a fair deal, or it gets hit with Tariffs. It’s as simple as that - and everybody’s talking! Remember, we are the “piggy bank” that’s being robbed. All will be Great!
— Donald J. Trump (@realDonaldTrump) July 24, 2018
