New York: US stocks closed higher as investors digested a batch of corporate earnings reports and major economic data.
The Dow Jones Industrial Average on Tuesday rose 126.73 points, or 0.50 per cent, to 25,628.91. The S&P 500 increased 8.05 points, or 0.28 per cent, to 2858.45, Xinhua news agency reported.
The Nasdaq Composite Index rose 23.99 points, or 0.31 per cent, to 7,883.66.
This earnings season has been stronger than analysts had expected.
Second-quarter earnings are expected to increase 23.5 per cent from the same period last year. Excluding the energy sector, the earnings growth is estimated to decrease to 20.4 per cent.
Of the 500 companies in the S&P 500 that have reported earnings by August 3, 78.6 per cent have reported earnings above analysts’ expectations. This is above the long-term average of 64 percent and above the prior four-quarter average of 75 per cent.
The second-quarter blended revenue growth estimate is 9.2 per cent. Excluding the energy sector, the revenue growth estimate declines to 8 per cent.
Some 73 per cent of companies have reported revenues above analysts’ expectations. This is above the long-term average of 60 per cent and above the prior four-quarter average of 72 per cent.