Dow Rises Triple-Digits; S&P 500, Nasdaq Notch 1%-Plus Gains
NEW YORK (TheStreet) -- The major U.S. equity averages soared Tuesday, buoyed by a batch of strong big-cap earnings reports and data showing a rebound in industrial production last month.
The Dow Jones Industrial Average finished up more than 127 points, or 0.95%, at 13,552. After losing 2%-plus last week, the blue-chip index now has put together a three-day winning streak, reclaiming nearly all of that ground in the process.
Breadth was overwhelmingly positive within the Dow with winners ahead of losers, 23 to 6 with General Electric (GE) closing flat. The biggest percentage gainers were American Express (AXP), Boeing (BA), Caterpillar (CAT), Intel (INTC) and United Technologies (UTX).Blue-chip losers included Coca Cola (KO), UnitedHealth (UNH), Verizon (VZ), and Wal-Mart Stores (WMT). UnitedHealth, which recently took the place of Kraft Foods in the Dow, reported quarterly earnings of $1.50 a share on revenue of $27.3 billion. The health care company's earnings beat analysts' expectations of $1.31 a share. Coca-Cola reported third-quarter net income rose 4% to $2.31 billion, or 50 cents a share. Revenue was $12.34 billion vs. $12.25 a year earlier. "We're continuing to watch the earnings reports come out; we know that the global economy has slowed over the course of the third quarter, and investors are trying to determine how much negative impact we had on corporate earnings," said Alan Gayle, senior investment strategist at RidgeWorth Investments. After the bell, both Intel and IBM (IBM) reported their quarterly results. Intel shares were sliding after the company gave an uninspiring outlook for the fourth quarter, while IBM's stock was weighed down a revenue miss. The S&P 500 advanced nearly 15 points, or 1.03%, to close at 1455, while the Nasdaq surged close to 37 points, or 1.21%, to settle at 3101. The strongest sectors in the broad market, which was entirely in the green, were basic materials, energy and technology. Apple (AAPL) shares gained 2.4% on heavy volume as news the company has sent out invitations for a media event on Oct. 23 has spurred speculation of an imminent launch for the iPad Mini. Winners were ahead of losers by a nearly 3-to-1 ratio on the New York Stock Exchange and 2-to-1 on the Nasdaq. Volume totaled 3.55 billion on the Big Board and 1.74 billion on the Nasdaq. The U.S. economic data was generally good on Tuesday. Industrial production rose 0.4% in September, a tad higher than the consensus view for a 0.3% increase and a strong rebound from a decline 1.3% in August.
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