© Reuters. NYSE front facade seen in New YorkBy Medha Singh and Devik Jain
(Reuters) – US stocks advanced on Tuesday after a list of positive earnings reports from companies including IBM and Coca-Cola, and hoping for a fiscal stimulus to shore up an economy reeling from the COVID-19 pandemic.
The Nasdaq treated water after hitting an intraday record shortly after the opening bell as Amazon.com Inc (O 🙂 shares weighed.
Coca-Cola Co (N 🙂 It was up 3.9% as it said demand for its soft drinks was improving after the “most challenging” quarter of the year.
International Business Machines Corp (N 🙂 was up 2.7% after signaling increased demand for its cloud computing business as large corporations accelerate their digital change.
“If this economic recovery continues slowly, technology stocks will likely continue to be one of the leaders. Technology is up to the task and they need to justify much of this strength and earnings,” said Ryan Detrick, chief market strategist at LPL Financial (NASDAQ 🙂 in Charlotte, North Carolina.
As the second quarter is expected to see the worst of the pandemic’s impact on earnings, investors are more focused on the clues as to how long it would take for the United States to recover.
The S&P 500 closed higher during the year and the Nasdaq hit a record close on Monday after promising early test data for three potential vaccines and a boost from high-flying companies like Amazon.com Inc (O 🙂 and Microsoft Corp (O 🙂
US lawmakers and White House officials headed to a day of negotiations on Capitol Hill on Tuesday, aiming to draft a deal on new coronavirus relief legislation as infections and deaths rose to record levels. in all the country.
The US government has less than two weeks to agree on a legislative package before additional unemployment aid stops for tens of millions of Americans.
Overnight, the leaders of the European Union agreed on a massive coronavirus relief program.
At 9:44 am ET, the Dow Jones Industrial Average () rose 269.28 points, or 1.01%, to 26,950.15, the S&P 500 () rose 19.65 points, or 0.60%, to 3,271.49. The Nasdaq Composite () rose 7.40 points, or 0.07%, to 10,774.49.
Lockheed Martin Corp (N 🙂 was up 2.6% as the U.S. arms supplier raised its full-year earnings and revenue forecasts fueled by higher quarterly sales at its aeronautical unit that makes the F-35 fighter jet .
The energy sectors () increased 4%, more than any other S&P sector. Technology () and consumer discretionary stocks () were in the red.
Forward issues outperformed declines by a ratio of 5.51 to 1 on the NYSE and a ratio of 2.59 to 1 on the Nasdaq.
The S&P index recorded 35 new 52-week highs and no new lows, while the Nasdaq recorded 87 new highs and a new low.
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