Wall Street regained its composure Tuesday, marching higher after companies including Merrill Lynch and IBM beat earnings expectations.
The earnings reports from IBM, Merrill and other companies helped reassure investors Tuesday after disappointing earnings from Citigroup on Monday halted three weeks of stock market gains. Stocks maintained their momentum on the expectation of strong earnings reports by Amgen and Motorola, which reported after the close of regular trading.
The tech-dominated Nasdaq composite index rose 28.31, or 1.3 percent, to 2173.18, a high for the year. The Dow Jones industrial average rose 71.57, or 0.7 percent, to 10,646.56. The Standard & Poor's 500-stock index rose 8.22, or 0.7 percent, to 1229.35.
Merrill Lynch rose $1.31, to $57.98. The brokerage's earnings, released before trading opened, beat analysts' estimates by 6 cents a share.
IBM gained $1.89, to $83.70. Its results, released after the close of regular trading Monday, beat expectations and marked the company's return to strength after a dismal first quarter.
Amgen rose 2 cents, to $70.52, in regular trading, then gained $5.98, to $76.50, in extended hours after its earnings report. The biotechnology firm's profit rose sharply, beating analysts' expectations by 16 cents a share.
Intel fell $1.20, to $27.51, in extended trading after gaining 48 cents in the regular session. The chipmaker beat analysts' expectations by a penny a share and set third-quarter estimates in line with analysts' expectations.
Yahoo dropped $4, to $33.73, in extended trading after gaining $1.15 in regular trading. Revenue rose 51 percent for the quarter and profit was up 43 percent.
Motorola fell 43 cents, to $19.42, in extended trading after rising 39 cents in the regular session. The mobile phone maker reported record second-quarter sales and profit. .
Wachovia fell $1.27, to $49.73, after the bank missed analysts' estimates by a penny per share.
New York Stock Exchange composite index rose 42.13, to 7414.57.
American Stock Exchange index rose 0.24, to 1535.08.
Russell 2000 index of smaller-company stocks rose 10.30, to 668.86.
NYSE: 2.05 billion shares, up from 1.59 billion on Monday. Advancers outnumbered decliners 16 to 7.
Nasdaq: 1.65 billion shares, up from 1.32 billion. Advancers outnumbered decliners 2 to 1.
Crude oil for August delivery: $57.46, up 14 cents.
Gold for current delivery: $419.70 a troy ounce, down from $420.40 on Monday.