The S&P 500 stretched its gains into day four on Tuesday, its longest streak since mid-February, after the Trump White House released a budget proposal heavy on cuts to social programs. 

The S&P 500 was up 0.19%, the Dow Jones Industrial Average increased 0.21%, and the Nasdaq rose 0.08%. 

The White House unveiled its 2018 budget proposal as a "taxpayer first" plan that makes deep cuts to a number of programs while raising spending on border security and defense. The Trump administration sent the budget proposal to Congress on Tuesday, outlining its wish list for how the federal government will spend its money next year.

The plan, titled "A New Foundation for American Greatness," included $3.6 trillion in spending reductions by slashing funds for entitlements and discretionary programs while increasing allocations for items including law enforcement and defense. About $800 billion in cuts would be made to Medicaid over the next decade, while cuts to food stamps would amount to $192 billion over 10 years. Trump promised on the campaign trail that he would not enact cuts to Medicaid should he become president.

Trump's proposed budget cuts could hurt the discount retail sector, Brian Sozzi argued over on TheStreet's premium site Real Money. Get his insights with a free trial subscription.

Crude oil fluctuated on Tuesday morning after the Trump administration proposed selling roughly half of the U.S.'s emergency oil stockpile to lower the national debt. The emergency stockpile consists of 687.7 million barrels of oil. Trump's plan also allows oil drilling in the Alaska National Wildlife Refuge.

West Texas Intermediate crude rose 0.7% to settle at $51.47 a barrel.

Trump is in the middle of a nine-day trip, his first abroad since assuming office in January. The trip comes after two weeks of bombshells tied to his campaign's relations with Russia during the election.

The chances of tax reform this year have grown more remote as the Trump administration wrestles with the negative headlines and leaks. Gains since the November election have largely been tied to high hopes over tax cuts and rollbacks of regulations.

"The drama in Washington leaves investors searching for the next catalyst to push stocks higher," said David Joy, Ameriprise Financial chief market strategist. "Notwithstanding last week's turbulence, stocks have managed to tread water since early March while events in Washington have unfolded. That is certainly a positive. The best quarter for earnings growth in six years no doubt helped. But if the Washington policy machine grinds to a halt, it is less clear that economic growth and expected earnings are likely to be strong enough to push stocks higher on their own."

A bombing at a Manchester, England, concert set Wall Street on edge. The deadly attack at an Ariana Grande concert at the Manchester Arena late Monday claimed 22 lives, injured as many as 60 more, and is being treated as a terrorist incident, a spokesman for the Greater Manchester Police has confirmed. The attacker died at the scene after using a self-detonating explosive in the 21,000-seat capacity arena. Police are investigating whether he acted alone or with assistance. ISIS has claimed responsibility for the attack, according to Reuters.  

The incident is the deadliest terrorist attack on British soil since July 2005, when Muslim extremists killed 52 people with three separate suicide bombs across London's transport system at the height of the morning rush-hour commute.

Wall Street rose on Monday after a series of deals with Saudi Arabia lifted defense stocks. The S&P 500 ended the day less than 10 points from its all-time closing record achieved a week earlier. Shares of Lockheed Martin (LMT - Get Report) and Dow component Boeing (BA - Get Report) rose Monday after both companies were seen walking away as winners from the weekend's Saudi deals bonanza, which saw Donald Trump and representatives for American companies inking more than $350 billion of deals.

Manufacturing activity in May fell to an 8-month low, according to the IHS Markit flash manufacturing PMI. The measure decreased to 52.5 from 52.8. Analysts expected the measure to tick up to 53. A flash services reading increased to a four-month high of 54 from 52.5, higher than consensus of 53.1. 

New home sales retreated in April after reaching a 10-year high a month earlier. Sales of newly constructed homes fell 11.4% to a seasonally adjusted pace of 569,000, according to the Commerce Department. Consensus was for an annual pace of 610,000. March's figure was revised to show an annual pace of 642,000, its highest level since October 2007. 

AutoZone (AZO) declined by 11% after falling short of earnings and sales estimates over its fiscal third quarter. The car parts retailer earned $11.44 a share over its quarter, up from $10.77 in the year-ago quarter, but below consensus of $11.99. Revenue of $2.62 billion fell short of estimates of $2.71 billion. Domestic same-store sales fell 0.8%, a surprise to analysts anticipating growth of 2.7%. 

Take-Two Interactive (TTWO - Get Report) surged more than 5% after far exceeding profit estimates. Fourth-quarter adjusted profit of 83 cents a share blew past consensus of 59 cents. Revenue of $407.1 million also topped estimates. The earnings win overshadowed disappointing news that the release of its widely anticipated Red Dead Redemption 2 would be delayed until spring 2018. 

DSW (DSW)  decreased 8% after a weaker-than-anticipated first quarter. Adjusted earnings of 32 cents a share missed consensus by 2 cents, though revenue of $691.1 million narrowly beat estimates by $6 million. Same-store sales declined 3%, slightly better than an expected 3.4% decrease. CEO Roger Rawlins conceded that sales "were challenging," though said trends improved during the quarter. 

Around 95% of S&P 500 companies have reported earnings so far this season. The blended earnings growth estimate is 15.3%, or 11% excluding the energy sector, according to Thomson Reuters. Of those that have reported, 75.3% have exceeded earnings estimates, above the historical average of 64%. 

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