Closing Bell: The Dow jumps nearly 550 points

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  • Stocks jumped Tuesday as strong earnings and economic data lifted spirits on Wall Street.
  • The Dow surged nearly 550 points in its best day since March. 
  • Watch US stocks trade in real time here.

Stocks notched their best day since March on Tuesday as strong earnings reports helped lift spirits on Wall Street, following a sell-off that had shaved thousands of points from the major US indices last week.

The Dow Jones industrial average rallied 2.17%, 0r nearly 550 points, after ending lower four out of the previous five sessions. The Nasdaq composite jumped 2.89%, and the S&P 500 was up 2.15%.

Financial and healthcare companies led the way higher after posting better-than-expected financial reports for the third quarter. Even technology companies, which bore the brunt of the recent rout, were able to gain.

Boosted by investment-banking revenue, Morgan Stanley and Goldman Sachs easily topped analyst forecasts. Johnson & Johnson also beat, helped by a jump in prescription sales. Netflix is expected to report after the bell.

Investors dumped relatively safe US government bonds, with yields on the 10- and two-year notes edging higher.

"With both Treasuries and equities beginning to settle in to their new respective trading ranges, investors have been able to refocus their attention on earnings and other economic indicators," said Scott Buchta, the head of fixed-income strategy at Brean Capital.

In a report out Tuesday, the Labor Department said US employers posted the most jobs in nearly two decades in August.

With unemployment at multi-decade lows and signs wage growth could pick up, many are expecting the Federal Reserve meeting minutes out Wednesday to signal another rate hike this December.

The housing market will also be in focus this week, with economists expecting a string of government data to point to a potential slowdown in residential real estate activity across the US. Housing starts and building permits are set to be released on Wednesday and existing home sales on Friday.

SEE ALSO: America's biggest companies have larger worries than Trump's tariffs

 
 
 
 
 
 
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