U.S. stocks close higher following solid earnings results

U.S. stocks marched broadly higher on Wall Street Tuesday as several major companies reported solid second quarter gains.

Investors pushed stocks closer to the record highs they reached just over a week ago.

The gains followed several stumbles last week, extending a period of volatility in July as investors weigh a looming rate cut by the Federal Reserve as well as uncertainties over trade and the economy.

Corporate earnings are now in full swing after last week’s relatively light load of mixed results. Nearly 150 companies in the S&P 500 will report their financial results through Friday. Analysts are expecting earnings to decline overall for the second quarter in a row.

“Interestingly, the market seems like it almost doesn’t care,” said Jason Pride, chief investment officer of private wealth at Glenmede Trust Co.

The earnings downturn has been modest so far and is being tempered by a still expanding economy and a Federal Reserve that has said it is willing to support growth.

The S&P 500 index rose 20.44 points, or 0.7 percent, to 3,005.47. The Dow Jones Industrial Average rose 177.29 points, or 0.7 percent, to 27,349.19. The Nasdaq composite rose 47.27 points, or 0.6 percent, to 8,251.40.

Banks were the clear market leaders throughout the day. JPMorgan Chase, Bank of America and several others gained ground as bond yields rose.

The yield on the 10year Treasury rose to 2.07 percent from 2.04 percent late Monday. Higher bond yields allow banks to charge higher interest on loans.

Earnings were the clear focus of the day and the key drivers for much of the market.

CocaCola soared 6.1 percent and reached a record high close after raising its revenue forecast for the year following a solid second quarter.

The surprisingly good results helped lift other consumer product makers. Kraft Heinz rose 1.5 percent and Kellogg rose 3.0 percent.

Stanley Black & Decker surged 7.2 percent after it reported second quarter profit well above analysts’ forecasts. The tool maker made one of the biggest gains in the industrial sector. General Electric rose 4.3 percent and 3M rose 1.6 percent.

Biogen rose 4.9 percent and Quest gained 5.4 percent on solid earnings results and helped push the broader health care sector higher.

Other notable earnings results came from toy maker Hasbro, which rose 10 percent after blowing away Wall Street’s second quart profit expectations. The company reported growth for many of its classic games and toys, including the board game Monopoly and PlayDoh.

It also reported growth for its digital game “Magic: The Gathering” and got some help from its partnership with Marvel on Avengers and SpiderMan action figures.