U.S. stock indexes rise on solid earnings
NEW YORK (MarketWatch) -- U.S. stocks reclaimed Tuesday gains after Federal Reserve Chairman Ben Bernanke spoke and Wall Street's gaze returned to solid results from
"We had good reports from Goldman (GS) and Coca-Cola (KO) ; not only did they beat expectations, but they did so by a pretty wide margin," said Andrew Fitzpatrick, director of investments at Hinsdale Associates. "Banks seem to be holding up fairly well, and that's one of the riskier sectors. When you see strength there, it tends to bode well for the rest of the market."
"There was nothing disastrous from Bernanke, and there may be a bit of relief here that there is nothing to talk about in terms of QE3," added Fitzpatrick of the market's fixation on prospects of a third round of quantitative easing.
Testifying before the Senate Banking Committee, Bernanke reiterated that the central bank was prepared to make further moves to bolster the recovery, if warranted. Read more about Bernanke's testimony.
It's now "becoming a question of does the market really want QE3, given the mixed results of the previous one. It may be better to try to just muddle through here," according to Fitzpatrick.
After sliding 82 points and rising as much as 102 points, the Dow Jones Industrial Average
finished at 12,805.54, up 78.33 points, or 0.6%. The index had 26 of its 30 components finish higher, led by
Blue-chip gainers also included Coca-Cola, up 1.6% after the beverage maker reported second-quarter profit that surpassed expectations.
The S&P 500 Index (SPX) advanced 10.03 points, or 0.7%, to 1,363.67, with health care, natural resources and telecommunications the best performers of its 10 sectors.
Shares of Goldman Sachs gained 0.3% after the Wall Street bank reported second-quarter profit above estimates and said it was selling its hedge-fund administration unit to
The Nasdaq Composite Index (COMP) climbed 13.10 points, or 0.5%, to 2,910.04.
For every five stocks on the decline, eight rose on the New York Stock Exchange, where nearly 698 million shares traded. Composite volume topped 3.5 billion.
Data from the Federal Reserve had U.S. industrial production rising 0.4% in June, with the pickup in manufacturing better than expected.
Another government report showed consumer prices holding steady last month, while a gauge of the housing market climbed to its best level since March 2007. .