US stocks surged to a strong finish on Tuesday as standout corproate earnings helped push the rally of last week's severe sell-off in the rear view mirror.
The Dow Jones Industrial Average climbed 543 points or by 2.15% to end at 25,794.
Last week, the Dow dove more than 1,300 in a sell-off sparked by worries over rising treasury yields and the US-China trade war.
The S&P 500 also rose 2.15% to finish at 2,810.
The tech-laden Nasdaq Composite Index advanced by 2.89% to settle at 7,645.
The Russell 2000 index of small-cap companies gained 2.87% to conclude at 1,597.
In Canada, the TSX rose 1.04% to trade at 15,569.
1:00 PM: US stock market bounces back as corporate earnings shine
US stocks continued to rally midday as robust quarterly performances from banking and healthcare companies pushed the market higher in the wake of last week’s rout.
The Dow Jones Industrial Average was trading sharply higher, up about 414.70 points, or 1.64% to 25,665.25. Investors appear to be focusing on upbeat earnings, including those from Goldman Sachs Group Inc, Johnson & Johnson and Morgan Stanley. A surge in shares of Dow component UnitedHealth Group Inc., also delivered a roughly 64-point jolt to the price-weighted equity gauge after the health-care company raised its full-year earnings outlook.
The tech-laden Nasdaq Composite Index advanced by 2.2% to 7,591 led by a 8.2% rise in Adobe Inc, a 6% jump in Arista Networks Inc and similar rises in Omnicom Group and Advanced Micro Devices.
Meanwhile, the S&P 500 index climbed 1.6% at 2,795 powered by Adobe, American Airlines Group, Progressive Corp and Omnicom Group Inc.
10:00 AM: Dow jumps by 200 points at open as US indices bounce back from last week's sell-off
US stocks opened higher on Tuesday as robust quarterly performances from a number of US companies pushed the market higher in the wake of last week’s rout.
Early in the session, the Dow Jones Industrial average charged ahead to gain 203 points and hover at 25,450, lifted by Johnson & Johnson, United Health Group, Microsoft, Goldman Sachs and Visa.
Shares of Morgan Stanley were trading 2.9% higher after the bank posted third-quarter earnings that zipped past Wall Street’s expectations. Its rival Goldman Sachs was also up 1.4% after beating estimates thanks to strong demand for initial public offerings.
The Nasdaq also drove into positive territory with a vengeance, adding 75 points to hit 7,505. The tech-laden index was pushed up by a 7.4% gain from Adobe, its best performer, on the back of the software maker’s bullish forecast that its revenue could grow 20% in fiscal 2019.
The S&P 500 also jumped by nearly 20 points to 2,770 while the Russell 2000 index of small-cap stocks added 6 points to 1,553.
Up in Canada, Toronto’s TSX climbed by 36 points to 15,445, mirroring gains reported by US benchmarks.
7:12 AM: Wall Street seen starting higher as traders brace for another round of earnings, including banks
US shares are seen starting on the front foot on Tuesday as traders brace themselves for another round of corporate earnings, including Netflix (NASDAQ:NFLX) after the closing bell.
Wall Street shares closed lower on Monday as tech stocks and internet related companies lost ground.
The Dow Jones Industrial Average closed down over 89 points at 25,250, while the Nasdaq shed over 66 points to 7,430.
The broader-based S&P 500 lost around 16 points to close at 2,750.
In Toronto, the TSX closed down nearly five points at 15,409.
In futures trade today though, the Dow Jones is up 126 points; the Nasdaq is ahead by around 45 points and the S&P 500 is ahead by 12.5.
In Europe, benchmark indices are generally higher, though the FTSE 100 in London is down around 19 at 7,010 as Brexit jitters continue to weigh oiin sentiment.
The German DAX is up 46, while France's CAC 40 is around 13 points to the good.
It will be a banking frenzy early doors on Wall Street with Goldman Sachs (NYSE: GS), BlackRock (NYSE:BLK) and Morgan Stanley (NYSE: MS) all set to report.
At Goldman, it will be the first set of numbers under new CEO David Solomon, who is attempting to turn around the trading division.
Scribes are expecting streaming titan Netflix to report modest growth in the third quarter after shares have been hit after a disappointing second.
That said, the stock is up a 73% for 2018 as a whole, as people appear to never tire of signing up to its subscription services.
Connor Campbell at Spreadex said: "...Monday’s eventual dip the Dow Jones is looking to rise 100 points after the bell rings on Wall Street, a move that would put the index back in the ballpark of 25350.
"There’s no real market-moving data on offer this afternoon, so trading could be dependent on any macro-developments, from the US-China trade war to the tensions between Saudi Arabia and the rest (or should that be West) of the world."