NEW YORK (Aug 14): U.S. stock indexes rose on Tuesday as upbeat quarterly reports from a clutch of companies boosted earnings optimism, while bank stocks rebounded after Turkey's currency snapped its three-week slide.
Turkey's lira recovered after the country's central bank moved to ease pressure on the currency, triggering a surge of as much as 7% to 6.4 per U.S. dollar.
Shares of U.S. lenders — Citigroup, JPMorgan, Wells Fargo, Bank of America, Goldman Sachs — rose between 0.2% and 0.7%.
"The Turkey currency crisis isn't going to grow any bigger (and) the markets are good at pricing things like this," said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.
"The spate of earnings today has people focusing back on what matters and that is U.S. economic data and earnings reports."
Tapestry jumped 9.7%, the most on the S&P index, after strong sales of its Kate Spade handbags helped the company's full-year forecast top analysts' expectations.
Advance Auto Parts rose 7.5%, after the company beat quarterly profit estimates and announced a new share buyback program.
The second-quarter earnings season is tapering down. Of the 455 companies in the S&P 500 that have reported so far, 79% have beaten analysts' estimates, according to Thomson Reuters I/B/E/S.
At 9:51 a.m. EDT the Dow Jones Industrial Average was up 46.60 points or 0.19% at 25,234.30; the S&P 500 was up 8.22 points or 0.29% at 2,830.15; and the Nasdaq Composite was up 11.50 points or 0.15% at 7,831.20.
All 11 major S&P sectors were trading higher.
Energy shares gained 0.61% and was the top gainer among S&P sectors, as oil prices rose after Saudi Arabia cut production.
Technology sector rose, led by 1.9% gain in shares of Nvidia, after the chipmaker rolled out its newest generation of chip technology.
The markets overlooked comment from Turkish President Tayyip Erdogan that his country will boycott electronic products from the United States, including Apple's iPhone.
"Tech has been the theme of the entire bull market run, and in times of concern, they tend to take a little bit more of the front row seat," Antonelli said.
Advancing issues outnumbered decliners by a 3.29-to-1 ratio on the NYSE and by a 2.08-to-1 ratio on the Nasdaq.
The S&P index recorded nine new 52-week highs and one new lows, while the Nasdaq recorded 29 new highs and 24 new lows.