US close: Stocks in the black after solid earnings releases
US stocks ended in the black as investors cheered a series of solid earnings reports from the likes of Goldman Sachs and Philip Morris.
The Dow Jones Industrial Average closed up 0.4%, the S&P 500 rose 0.6% and the Nasdaq ended 0.9% higher.
Meanwhile, oil prices settled higher, with West Texas Intermediate up 0.9% to $50.39 a barrel and Brent crude 0.5% firmer at $51.79.
Earnings releases underpinned sentiment on Tuesday. Banking heavyweight Goldman Sachs rallied after it said third-quarter profit rose to $2.09bn, or $4.88 a share, from $1.43bn, or $2.90 a share, versus expectations it would report $3.82 a share.
Tobacco firm Philip Morris International was on the front foot after its third quarter earnings beat forecasts, while shares in Domino’s Pizza gained as it posted a 25% jump in profit in the last quarter thanks to strong sales.
United Health racked up healthy gains after reporting 23% growth in quarterly profit, while asset manager Blackrock edged up after its third-quarter earnings surpassed analysts’ estimates.
Netflix surged after its third-quarter earnings and new subscriber numbers released late on Monday beat expectations.
Harley Davidson shot higher as its third-quarter revenue beat forecasts and the company announced plans to reorganise and cut down its workforce.
Johnson & Johnson bucked the trend, ending weaker despite stronger-than-forecast quarterly results.
On the macroeconomic front, investors digested data showing inflation rose in line with expectations in September due to a rise in housing and energy prices.
The consumer price index climbed 1.5% year-on-year, its biggest yearly rise since October 2014 as expected by analysts, following a 1.1% increase in August.
Inflation edged 0.3% in September after a 0.2% gain in August, as forecast.
Ian Shepherdson, chief economist at Pantheon Macroeconomics, said: “Headline inflation has risen to 1.5% from zero over the past year, and it will continue to climb rapidly as last year's declines in energy prices drop out of the calculation. We expect to see a 2.5% rate by next February, by which point we think surveys of inflation expectations will have risen significantly.”
The inflation data could prompt the Federal Reserve to raise interest rates sooner rather than later.
Also in macro news, the National Association of Homebuilders/Wells Fargo housing market index showed builder confidence in the US edged lower in October but remained at its second-highest level of 2016, albeit amid concerns about a shortage of construction lots and labour.
S&P 500 - Risers
Netflix Inc. (NFLX) $118.79 +19.03%
Harley-Davidson Inc. (HOG) $54.19 +9.03%
Unitedhealth Group Inc. (UNH) $143.39 +6.90%
NRG Energy Inc. (NRG) $11.70 +6.65%
Frontier Communications Co. (FTR) $4.07 +4.36%
CIGNA Corp. (CI) $123.65 +4.22%
Comerica Inc. (CMA) $50.05 +4.14%
Anthem Inc (ANTM) $123.15 +4.12%
CF Industries Holdings Inc. (CF) $23.46 +3.81%
Newmont Mining Corp. (NEM) $36.17 +3.25%
S&P 500 - Fallers
Urban Outfitters Inc. (URBN) $33.26 -4.34%
W.W. Grainger Inc. (GWW) $205.86 -4.06%
Expeditors International Of Washington Inc. (EXPD) $49.42 -3.19%
Diamond Offshore Drilling Inc. (DO) $16.97 -2.64%
International Business Machines Corp. (IBM) $150.72 -2.62%
Johnson & Johnson (JNJ) $115.41 -2.60%
Omnicom Group Inc. (OMC) $80.87 -2.37%
Kansas City Southern (KSU) $92.58 -2.25%
Borg Warner Inc. (BWA) $33.64 -1.52%
Genuine Parts Co. (GPC) $96.35 -1.51%
Dow Jones I.A - Risers
Unitedhealth Group Inc. (UNH) $143.39 +6.90%
Goldman Sachs Group Inc. (GS) $172.63 +2.15%
Intel Corp. (INTC) $37.75 +1.23%
E.I. du Pont de Nemours and Co. (DD) $69.50 +1.22%
Wal-Mart Stores Inc. (WMT) $68.87 +0.95%
Merck & Co. Inc. (MRK) $62.09 +0.93%
Coca-Cola Co. (KO) $41.97 +0.89%
Boeing Co. (BA) $135.10 +0.82%
JP Morgan Chase & Co. (JPM) $67.70 +0.79%
Microsoft Corp. (MSFT) $57.66 +0.77%
Dow Jones I.A - Fallers
International Business Machines Corp. (IBM) $150.72 -2.62%
Johnson & Johnson (JNJ) $115.41 -2.60%
McDonald's Corp. (MCD) $111.25 -1.03%
Visa Inc. (V) $81.58 -0.69%
Procter & Gamble Co. (PG) $87.45 -0.43%
Verizon Communications Inc. (VZ) $50.27 -0.32%
3M Co. (MMM) $169.95 -0.15%
Caterpillar Inc. (CAT) $87.22 -0.08%
Apple Inc. (AAPL) $117.47 -0.07%
Nasdaq 100 - Risers
Netflix Inc. (NFLX) $118.79 +19.03%
Vertex Pharmaceuticals Inc. (VRTX) $82.96 +3.06%
Endo International Plc (ENDP) $19.85 +3.01%
Illumina Inc. (ILMN) $145.22 +2.83%
TripAdvisor Inc. (TRIP) $63.19 +2.81%
Tesla Motors Inc (TSLA) $199.10 +2.65%
Mylan Inc. (MYL) $37.39 +2.61%
Citrix Systems Inc. (CTXS) $85.32 +2.59%
Micron Technology Inc. (MU) $17.41 +2.47%
Incyte Corp. (INCY) $88.76 +2.38%
Nasdaq 100 - Fallers
Ross Stores Inc. (ROST) $63.55 -1.30%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $256.04 -1.04%
eBay Inc. (EBAY) $31.64 -0.53%
Bed Bath & Beyond Inc. (BBBY) $40.24 -0.45%
Tractor Supply Company (TSCO) $65.27 -0.41%
Discovery Communications Inc. Class C (DISCK) $24.50 -0.37%
Whole Foods Market Inc. (WFM) $28.21 -0.35%
Discovery Communications Inc. Class A (DISCA) $25.21 -0.32%
Fastenal Co. (FAST) $38.16 -0.29%
Starbucks Corp. (SBUX) $52.61 -0.28%