Traders work on the floor of the New York Stock Exchange during afternoon trading on Feb. 5, 2024.
Michael M. Santiago | Getty Images
U.S. stocks rose on Tuesday as the corporate earnings season picked up steam and investors looked to build on the strong gains from the previous session.
The Dow Jones Industrial Average climbed 255 points, or 0.6%. The S&P 500 gained 1.1% while the Nasdaq Composite ticked up 1.4%.
Spotify surged more than 14% after surpassing Wall Street’s first-quarter estimates and issuing rosy second-quarter guidance. UPS shares edged slightly higher after the delivery giant posted better-than-expected quarterly earnings. PepsiCo, meanwhile, dipped 2.4% despite reporting better-than-expected earnings. GE Aerospace also reported an earnings beat.
Tesla is slated to report earnings after the bell, followed by Meta Platforms on Wednesday afternoon. Google parent company Alphabet and Microsoft round out the technology-heavy earnings week on Thursday.
Roughly 20% of the S&P 500 has reported earnings through Tuesday morning. Of those companies, 76% have beaten analysts’ expectations, FactSet data shows.
Tuesday’s moves come after an upbeat session on Wall Street. Investors bought the dip in tech stocks after a recent sell-off in key names such as Nvidia, which had been dinged recently amid fears of higher inflation and the prospect of elevated interest rates.
“Equities have staged among the best-behaved sell-offs in 30yrs; however, as AI winners + Mag7 took the brunt of the last leg lower, disappointing earnings may accelerate losses, a risk options seem to discount,” Barclays strategist Stefano Pascale wrote.
