Stocks continue higher as Q2 earnings season underway.
U.S. stocks extended their rally to a third day on Tuesday, as earnings optimism propelled the major indexes higher.
The large-cap S&P 500 Index (NYSEARCA:SPY) gained 0.4% to close at 2,793.83, with ten of 11 primary sectors reporting gains. Utilities stocks and consumer staples were the best performers.
Dow industrials (NYSEARCA:DIA) rose 143.07 points, or 0.6%, to 24,919.66. The blue-chip index surged 320 points on Monday, its strongest performance in a month.
Meanwhile, the technology-driven Nasdaq Composite Index (NYSEARCA:QQQ) pared gains to finish flat at 7,7759.20.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) hovered within a narrow range on Tuesday in a sign of calm on Wall Street. The so-called “fear index” closed at 12.60 on a scale of 1-100 where 20 represents the historic mean.
Corporate reporting season is underway this week, with investors eyeing a triad of bank earnings Friday. JPMorgan Chase, Wells Fargo and Citigroup are all scheduled to report at the end of the week.
Analysts are forecasting another huge quarter for corporate America. Per-share earnings of S&P 500 companies are forecast to rise 20% year-over-year, according to financial research firm FactSet.
There were no major economic reports scheduled for Tuesday. Investors are eyeing several market-moving reports this week, including the latest inflation data from the U.S. Labor Department. The consumer price index (CPI) is expected to rise 0.2% in June and 2.9% annually. So-called core inflation likely strengthened to 2.3% annually.
The Final Word: Volatility is receding into the background. This trend is expected to continue in coming weeks as earnings take the spotlight.