S&P 500 Rises as Strong Earnings Spark Rally; Apple Gives Up Some Gains

By Yasin Ebrahim

Investing.com -- The S&P 500 rallied Tuesday, as better-than-expected quarterly results continued to support sentiment on stocks for the second-straight day, though Apple's move from session highs kept gains in check. 

The S&P 500 rose 1.1%, the Dow Jones Industrial Average gained 1.1% or 330 points, and the Nasdaq was up 0.83%

Industrials led the broader-market climb after upbeat quarterly results from Lockheed Martin sparked a rally in other defense companies.

Lockheed Martin (NYSE:LMT) rallied more than 8% after its third-quarter earnings topped Wall Street estimates and the defense contractor boosted stock buyback plans.

Northrop Grumman (NYSE:NOC), L3Harris Technologies (NYSE:LHX), and Huntington Ingalls Industries (NYSE:HII) were more than 4% higher.

Goldman Sachs (NYSE:GS), meanwhile, climbed more than 2% after reporting blowout third-quarter earnings, underpinned by strong performance in its fixed-income trading division.

The Wall Street bank also confirmed plans to reorganize its business into three segments: asset and wealth management, global banking and markets, and platform solutions.

Hasbro (NASDAQ:HAS), however, fell nearly 3% after the toymaker reported third-quarter earnings that fell short of estimates as bloated inventory and softer consumer demand weighed on performance.

Tech stocks continued to advance for the second day in a row. Apple (NASDAQ:AAPL), however, gave up a more than 3% gain on reports that the company is cutting production of the iPhone 14 plus less than two weeks after its debut. The tech giant announced Tuesday the launch of new products including an Apple TV 4K and iPad Pro.

Salesforce (NYSE:CRM) rose 4% on reports that the activist investor Starboard Value took “significant” stake in the software maker.

Netflix (NASDAQ:NFLX) fell more than 1% ahead of its quarterly results due after the market closes,

Energy stocks were up more than 1% even as oil prices stumbled amid ongoing concerns about demand just as the U.S. is expected to ramp up the release of emergency oil supplies.

Marathon Petroleum (NYSE:MPC), Valero Energy (NYSE:VLO), and EOG Resources (NYSE:EOG) were up more than 2%.

“Biden is expected this week to announce the release of the remaining 14 million barrels of the 180 million barrels that have been earmarked so far,” Commerzbank said in a note.