The major domestic equity indexes rose Tuesday, as a result of on broad-based gains while Netflix and UnitedHealth earnings impressed investors and boosted optimism regarding the upcoming corporate reporting season.
Shares in Netflix, the first of Wall Street’s leading momentum stocks to report earnings, rose 9 percent to close at a record high after the video-streaming pioneer smashed analysts’ quarterly subscriber estimates.
Amazon was the S&P’s best performer with a 4 percent rise, helped by Netflix and also by signs that the Supreme Court is hesitant to let states force out-of-state online retailers to collect sales taxes on purchases.
The consensus is that the S&P 500 index will see corporate earnings increase 18.6 percent in the first quarter, making it the largest increase in seven years, according to Thomson Reuters data.
Strong earnings expectations as well as economic data from earlier in the day boosted equities.
Data indicated homebuilding increased more than expected in March amid a rebound in the construction of multi-family housing units. The PHLX housing index rose 1.12 percent.
Along with the housing data, industrial production registered a solid increase last month as cold weather boosted utilities output and production at mines surged.
Ten of the 11 major S&P sectors rose, with the largest assistance coming from the technology index’s 2.2 percent gain. The consumer discretionary index rose 1.9 percent, aided by Netflix and Amazon, which hit its highest level since March 27.
The financial index was the sole S&P sector in the red, ending the day down 0.07 percent as bank stocks fell.
Goldman Sachs fell 1.6 percent in reaction to a pause in share buybacks and rising expenses, as well as indications it might be open to an acquisition. Goldman’s earnings, however, exceeded Street’s expectations.
UnitedHealth rose 3.6 percent after the largest domestic health insurer raised its earnings forecast and posted results that exceeded estimates.
Approximately 6.15 billion shares changed hands on the major domestic equity exchanges, a number that was below the 6.98 billion share average for the last 20 trading days but higher than the last two sessions.