MARKET REPORT Firms’ profits give stocks a boost

U.S. stocks rallied for a second day Tuesday amid better-than-expected earnings from industry heavyweights, adding to evidence that the strengthening economy is lifting corporate profits.

The Standard and Poor’s 500 index rose 28.55 points, or 1.1 percent, to 2,706.39. The Dow Jones industrial average gained 213.59 points, or 0.9 percent, to 24,786.63. The latest gain nudged the blue-chip index into positive territory for the year.

The Nasdaq composite climbed 124.81 points, or 1.7 percent, to 7,281.10. The Russell 2000 index of smallercompany stocks picked up 16.77 points, or 1.1 percent, to 1,579.80.

Netflix Inc. surged after subscriber growth topped estimates, helping to drive gains in technology shares. UnitedHealth Group Inc. also climbed after reporting strong results.

The spate of earnings reports overshadowed renewed machinations on the trade front, where China retaliated against the U.S. with agricultural duties. The world’s second-largest economy also said it will ease access to its automobile market, boosting foreign companies.

“Even though we’re early in the earnings season, the fact that we continue to see good earnings and earnings growth come out is really what’s driving the market,” said Nana Adae, global investment specialist at J.P. Morgan Private Bank. “Earnings growth ties to fundamentals, and fundamentals are key.”

“Markets have tended to rally during earnings season, and I think some of that optimism, some of the sentiment is coming through the market right now,” said Matt Forester, chief investment officer at Lockwood Advisors Inc. in King Of Prussia, Pa. “We went into Friday night with missiles flying into Syria and a lot of political news, and here we are Tuesday afternoon and nobody is even thinking about that anymore. It’s off the front page already.”

Netflix jumped $28.28, or 9.2 percent, to $336.06 after the video streaming service said it gained 7.4 million subscribers in the first quarter, more than analysts expected. Other technology companies also posted gains. Microsoft rose $1.90, or 2 percent, to $96.07, while Amazon added $62.33, or 4.3 percent, to $1,503.83.

UnitedHealth climbed $8.23, or 3.6 percent, to $238.55 after it reported a 31 percent jump in first-quarter profit and said it gained Medicare Advantage and Medicaid customers. The nation’s largest health insurer also raised its forecast for 2018.

Celanese gained $3.96, or 3.7 percent, to $110.38 after the chemical company’s latest results beat analysts’ estimates. The company also raised its annual forecasts.

Some companies did not impress traders. Johnson & Johnson fell $1.32, or 0.9 percent, to $130.54 after muchhigher spending and one-time charges offset a big jump in the company’s first-quarter revenue.

Southwest Airlines gave up 62 cents, or 1.1 percent, to $54.27 after one person was killed and others were injured when one of the airline’s jets made an emergency landing at Philadelphia’s airport Tuesday after an engine failure.

Meanwhile, several Federal Reserve officials are due to speak this week. Treasury yields edged lower, and West Texas crude traded near $66 a barrel.