US stocks soared, led by Internet stocks that surged for the first time in five days as results from firms such as Merck & Co. and Sprint Corp. beat estimates ahead of the announcement of a Federal Reserve monetary policy.
Internet shares gained as Yahoo! Inc., Twitter Inc. and TripAdvisor Inc. added at least 4%. Merck increased 3.1 as the firm registered improved earnings after reductions on research and promotion spending.
Spring increased 9.2% after its sales topped estimates as the firm retained more subscribers than estimated. Coach Inc. slid 8.8% after its North American stores’ sales lost 21% in the wake of intensified competition and unfavorable weather.
According to Bloomberg, the Standard & Poor’s 500 ascended 0.6% to 1,879.98 as of 12:46 pm in New York. The Dow Jones Industrial Average added 102.97 points or 0.6% to 16,551.71. The Nasdaq Composite Index increased 0.9%. The volumes of traded shares in S&P 500 matched the 30-day average at the time of compilation of the readings.
“Earnings have been beating expectations and guidance will remain strong for coming quarters because of this spring thaw and economic rebound. That will continue to underpin the market,” said Patrick Spencer of Robert W. Baird & Co.
The Dow Jones gauge of internet shares added 2.2% on Tuesday after losing for four straight days. TripAdvisor Inc jumped 5.2% to a per-share price of $81.29. Twitter soared 4.3% to $42.49.
Yahoo increased 4.1 to a per-share price of $35.38 after it revealed intentions to introduce two comedy shows to command more traffic to its website. The stocks have dropped 6.6% within the past five sessions.
Bloomberg estimates show that firms within the S&P 500 had earnings surge 3.4% in the first three months of 2014.
However, some earnings reports disappointed investors, as ABC reports. Bond prices steadied for the most part.
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To contact the reporter of this story; Jonathan Millet at email@example.com