NEW YORK (Reuters) – US stock indices rose on Tuesday on broad-based gains, while Netflix and UnitedHealth earnings impressed investors and boosted optimism over the reporting season in the US.
Netflix ( NFLX.O ), the first of the Wall Street stocks, rose 9 percent to a record high after the video streaming pioneer smashed analysts' quarterly subscribers estimates.
Amazon.com ( AMZN.O ) was the S & P's biggest boost with a 4 percent jump, supported by Netflix results, but also by signs that the US Supreme Court is reluctant to force states to explain to online retailers that they charge sales taxes on purchases.
Analysts believe that S & P 500 corporate earnings rose 1
Strategists said strong earnings expectations and economic data from earlier in the day boosted the stock markets.
"The overall picture is positive when it comes to cross-sectoral returns, and there's a nice little boost from tax reform legislation," said Kristina Hooper, Invesco's global market strategist in New York.
"Investors seem to ignore that, which is not positive," Hooper said after White House economic adviser Larry Kudlow said the United States was not convinced of the benefits of joining the TPP. The market had gained ground last week when US President Donald Trump was interested in TPP.
"It's easier for markets to focus on the positive and tangible rather than trying to gauge the potential outcome of protectionism," she said.
The Dow Jones Industrial Average (DJI) rose 213.59 points or 0.87 percent to 24,786.63, the S & P 500.SPX gained 28.55 points or 1.07 percent to 2,706.39 and the Nasdaq Composite .IXIC added 124.81 points or 1.74 percent. to 7.281,10.
The data shows that residential construction in the US rose more sharply than expected in March, while multi-family home construction resumed. The PHLX Housing Index .HGX rose 1.12 percent.
Along with the housing data, Invesco Hooper said industrial production data were a good sign for the economy. Industrial production saw a solid increase last month as the cold weather boosted power plant production and mine production.
Ten of the 11 major S & P sectors rose, with the biggest push coming from the .PLRCT increase of 2.2 percent. The non-consumer staples index .SPLRCD rose 1.9 percent, driven by Netflix and Amazon, which reached their highest levels since March 27.
The financial index .SPSY was the only S & P sector in the red and ended the day with 0.07 percent as bank shares fell.
Goldman Sachs ( GS.N ) slipped 1.6 percent as investors responded to a break in share buybacks and rising costs, as well as signs of a takeover. Goldman's profit, however, hit Wall Street expectations.
UnitedHealth ( UNH.N ) rose 3.6 percent after the largest US health insurer raised its earnings guidance and posted results that exceeded Wall Street's estimates.
Ongoing problems outperformed the NYSE declines by a ratio of 2.77 to 1; on the Nasdaq, a 2.14-to-1 ratio favored the advanced.
The S & P 500 recorded 30 new 52-week highs and no new lows; The Nasdaq Composite recorded 126 new highs and 42 new lows.
On US exchanges, 6.15 billion shares changed hands, less than 6.98 billion on average over the last 20 trading days, but higher than the last two.
Additional reports by April Joyner of New York and Sruthi Shankar of Bengaluru; Arrangement by Nick Zieminski and Dan Grebler