Stocks rose on Tuesday as investors cheered strong quarterly numbers from companies like Coca-Cola and United Technologies.
“The story in the market is earnings and the prospects of easier monetary policy,” said Peter Cardillo, chief market economist at Spartan Capital Securities. “That’s causing a rush into equities.”
Cardillo pointed out the S&P 500 is within striking distance of the key 3,000, adding that support around that level “could set the stage for a rally that could take the index above 3,100.”
Coca-Cola shares jumped more than 4% after the company posted earnings and revenue that topped analyst expectations. Coca-Cola pointed to a 4% rise in volume and transactions during the previous quarter in Coke’s namesake brand. Volume from its Zero Sugar line also grew by double digits.
United Technologies, another Dow component, reported better-than-expected quarterly results and its stock gained 1.7%. CEO Gregory Hayes pointed to “outperformance” from its Collins Aerospace division as a driver for the strong quarter. The company also raised its full-year outlook for earnings and organic sales growth.
Biogen also reported better-than-expected earnings, sending its stock up 5%.
More than 18% of S&P 500 companies have posted quarterly numbers this earnings season. Of those companies more than 78% have reported better-than-expected profits, according to FactSet data. Those companies have also seen their earnings grow by an aggregate of 3.6%.
Meanwhile, global stocks appeared to receive support from expectations that the European Central Bank (ECB) and the Federal Reserve could soon cut interest rates. The ECB is seen cutting rates by 10 basis points on Thursday, with the U.S. central bank expected to lower rates by 25 basis points at the end of the month.
The Stoxx 600 index jumped 1.1% while the German Dax and French CAC 40 climbed 1.7% and 1.1%, respectively. Spanish and Italian stocks also traded higher.
—CNBC’s Elliot Smith contributed to this report.