The Dow Jones Industrial Average closed at 27,024.80 on Tuesday with a gain of 237.44 points or 0.89%. The S&P 500 closed at 2,995.68 for a gain of 29.53 points or 1.00%. The Nasdaq Composite closed at 8,148.71 for a gain of 100.06 points or 1.24%. The VIX Volatility Index was lower at 13.48 for a loss of 1.09 points or -7.48%.
Tuesday’s market movers
Big banks and health care companies kicked off the third-quarter earnings season on Tuesday. A strong start to the quarter helped to fuel stock gains. Top results included the following:
- UnitedHealth (UNH, Financial): Revenue of $60.35 billion increased 6.7% year over year and beat estimates by $510 million. Third-quarter GAAP earnings of $3.67 per share beat estimates by 8 cents and non-GAAP earnings of $3.88 per share beat estimates by 12 cents.
- Johnson & Johnson (JNJ, Financial): Revenue of $20.73 billion increased 1.9% year over year and beat estimates by $590 million. Third-quarter GAAP earnings per share of $1.81 beat estimates by 23 cents and non-GAAP earnings of $2.12 per share beat estimates by 11 cents.
- JPMorgan (JPM, Financial): Revenue of $30.06 billion increased 8.1% year over year and beat estimates by $1.7 billion. Third-quarter GAAP earnings of $2.68 per share beat estimates by 23 cents.
- Goldman Sachs (GS, Financial): Revenue of $8.32 billion was down 5.7% year over year and missed estimates by $10 million. Third-quarter GAAP earnings per share of $4.79 missed estimates by 9 cents.
- Wells Fargo (WFC, Financial): Revenue of $22.01 billion increased 0.3% year over year and beat estimates by $690 million. Third-quarter GAAP earnings of 92 cents per share missed estimates by 31 cents and non-GAAP earnings of $1.07 missed estimates by 11 cents per share.
- Citigroup (C, Financial): Revenue of $18.57 billion increased 1.0% year over year and beat estimates by $30 million. Third-quarter GAAP earnings of $2.07 per share beat estimates by 12 cents and non-GAAP earnings of $1.97 per share beat estimates by 2 cents.
In the S&P 500, health care and financials led gains. In the Dow Jones Industrial Average, the following stocks led gains:
- UnitedHealth (UNH, Financial) 8.19%
- JPMorgan (JPM, Financial) 3.08%
- Caterpillar (CAT, Financial) 2.13%
Economic reports affecting market trading included the following:
- Consumer inflation expectations increased to an annual rate of 2.48% from 2.41%.
- The Treasury held auctions for three-month bills at a rate of 1.640% and six-month bills at a rate of 1.620%.
- The Federal Reserve’s George, Daly and Bullard gave speeches.
In international news, the U.S. raised tariffs on steel from Turkey. Investors were also watching reports on Brexit negotiations as talks are potentially nearing a deal, helping the pound to rise.
Small-cap stocks
In small caps, the Russell 2000 closed at 1,523.30 for a gain of 17.87 points or 1.19%. The S&P 600 closed at 942.32 for a gain of 10.15 points or 1.09%. The Dow Jones U.S. Small-Cap Growth Index closed at 9,716.92 for a gain of 116.42 points or 1.21%. The Dow Jones U.S. Small-Cap Value Index closed at 9,343.72 for a gain of 78.44 points or 0.85%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 1,924.31 for a gain of 15.28 points or 0.80%; the S&P 100 at 1,328.43 for a gain of 13.87 points or 1.06%; the Nasdaq 100 at 7,942.85 for a gain of 100.52 points or 1.28%; the Russell 3000 at 1,752.96 for a gain of 17.14 points or 0.99%; the Russell 1000 at 1,654.55 for a gain of 15.95 points or 0.97%; the Wilshire 5000 at 30,585.62 for a gain of 299.83 points or 0.99%; and the Dow Jones U.S. Select Dividend Index at 722.14 for a gain of 4.11 points or 0.57%.
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