Stocks rose on Tuesday after the release of strong quarterly results from some of the largest U.S. companies helped the market recover from last week’s sell-off.
The Dow Jones Industrial Average surged 214 points at the open, with UnitedHealth and Goldman Sachs outperforming. The S&P 500 gained 0.7 percent as the tech sector jumped 1.4 percent. The Nasdaq Composite advanced 1 percent.
Morgan Stanley jumped more than 4 percent after reporting better-than-expected earnings. Goldman Sachs’ profits also beat estimates, sending the stock up 2.1 percent. Dow-members Johnson & Johnson and UnitedHealth both posted better-than-expected earnings.
BlackRock posted mixed quarterly results, as earnings topped estimates while sales missed.
Investors will turn their eyes to Netflix after the close on Tuesday, as the company releases its quarterly results. In the previous earnings season, the streaming giant fell sharply as its subscriber growth was less than expected.
“Our best assessment is that 3Q international net adds will be in line with management’s guidance of 4.4M, which is in line with our estimate,” said Deutsche Bank analyst Bryan Kraft, in a note. “However, based on investor feedback gathered by DB, the buyside’s expectations are a bit higher, in the high 4M range, at least partly due to a view that management has guided conservatively.”
Investors came into the earnings season with high hopes. Analysts polled by FactSet expect third-quarter S&P 500 earnings to have grown by 19 percent.
However, Dow-component Walmart slashed its fiscal 2019 earnings forecast on Tuesday, citing its Flipkart acquisition. The earnings season comes as Wall Street tries to recover from sharp losses seen last week.
The Dow and S&P 500 fell more than 4 percent last week as worries over higher borrowing costs sent equities tumbling. The Nasdaq also fell 3.7 percent last week as tech shares dropped broadly.
On Monday, the major indexes saw declines, led by tech, continuing from their overall trend last week. The S&P 500 slipped by 0.6 percent to close at 2,750.79 while the Nasdaq composite fell by 0.9 percent to end the trading day stateside at 7,430.74. The Dow also shed 89.44 points to close at 25,250.55.
—CNBC’s Spriha Srivastava contributed to this report.