X Stocks thundered to a second day of strong gains Tuesday as big-name earnings reports powered weighty moves across the market.
The Dow Jones industrial average brought home a 1.1% gain, gaining some breathing room above its 50-day moving average and closing within 1% of its March 1 peak. The Nasdaq cleared the 6000 level, rising 0.7% to another fresh high. The S&P 500 climbed 0.6%, ending just below its March 1 high.
Alcoa (AA) surged 9%. Miner Freeport McMoRan (FCX) rattled off a 6% gain. Whirlpool (WHR), Biogen (BIIB) and JetBlue Airways (JBLU) rose 4% apiece.
Caterpillar (CAT) was a prime mover, powering up 8% — easily leading the Dow industrials and the S&P 500 — and pushing the stock's two-day gain to 11%, marking its best week since the Nov. 8 presidential election. The heavy-equipment maker reported a 100% gain in Q1 earnings and a 4% rise in revenue, its first revenue advance in ten quarters.
The stock move cleared two buy points, a traditional flat-base entry of 99.46 and a more-aggressive entry of 97.99, leaving shares at their highest level since November 2014.
Netflix (NFLX) streamed 6% higher to top the Nasdaq 100 on news that the company landed an agreement with iQiyi, owned by internet search giant Baidu (BIDU), to begin offering content in China. Chinese regulators have barred Netflix from offering content directly to consumers in the country. Netflix also announced Monday it would issue a $1.08 billion bond offering to investors outside the U.S. to fund new content and strategic acquisitions. The gain sent Netflix shares past a 148.39 buy point in a three-weeks tight pattern. Baidu shares rose 4% Tuesday, to just below a cup-base buy point of 188.64. Earnings from Baidu are due Thursday after the close.
Steel alloys specialist Allegheny Technologies (ATI) forged a 10% gain after reporting that earnings growth accelerated to 128% and revenue popped 14% in the first quarter. Shares ended the session up 16% so far this week, beginning up the right side of a three-month consolidation.
On the downside, weak quarterly results sent Ryder Systems (R) down 13% and ExpressScripts (ESRX) to an 11% loss.
Verizon (VZ) marked the Dow's worst loss, down 0.6% after news reports said Verizon offered $1.8 billion for Straight Path Communications (STRP), outsizing AT&T's (T) earlier $1.6 billion offer. Straight Path bolted 15% higher. AT&T eased 0.2%.
Earnings reports scheduled after the close include AT&T, Exxon Mobil (XOM), Illumina (ILMN), Cree (CREE) and Macon Technology Solutions (MTSI), among many others.
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