Upbeat reports from several Dow blue chips fueled buying on Wall Street Tuesday as earnings season kicked off. That allayed investor concerns about fallout from a prolonged U.S.-China trade war. The three indexes gained more than 9-tenth percent.
Vespula Capital CEO Jeff Tomasulo:
SOUNDBITE: VESPULA CAPITAL CEO JEFF TOMASULO (ENGLISH) SAYING:
"Now we're in the midst of earnings season. If we start to see good earnings come in, there's a lot of people so negative I think we're going to get a squeeze - we could, not that I think it's going to happen, we have to see how earnings season progresses - but we could see the market continue to go higher."
Healthcare stocks led the rally. Shares of UnitedHealth Group and Johnson & Johnson MOVED higher. Both companies raised their profit forecasts.
Financial stocks were also among the top gainers. Quarterly profit from JPMorgan Chase and Citigroup rose and blasted past analysts' estimates. Their results showed American consumers are helping to prop up the economy. But Goldman Sachs shares fell after the investment bank posted declining profit that missed Wall Street's targets.
Tuesday's earnings came as a surprise because Wall Street had forecast the worst quarterly profit performance in about three years for S&P 500 companies. Reporting later this week: Bank of America, Morgan Stanley and Netflix.