Stocks Up for Third Day on Recovery Optimism
U.S. stocks rose for a third day on Tuesday, with the S&P 500 index finishing above 1,400 and the Nasdaq Composite above 3,000 for the first time since early May, as investors bet on more stimulus from central banks to bolster the global economy. The Dow Jones Industrial Average added 51.09 points, or 0.39%, to 13,168.60. The S&P 500 index rose 7.12 points, or 0.51%, to 1,401.35. The Nasdaq Composite advanced 25.95 points, or 0.87%, to 3,015.86.
Walt Disney reported quarterly earnings that beat Wall Street’s expectations as revenue at its parks and resorts grew, but revenue still came up short of analysts’ forecasts on Tuesday. The company posted fiscal third-quarter earnings excluding items of $1.01 per share, up from 78 cents a share in the year-earlier period. Revenue rose 4 percent to $11.09 billion from $10.68 billion a year ago.
Sirius XM Radio Inc. on Tuesday said strong subscriber growth helped fuel revenue, and the satellite radio company raised its profit outlook for the year. Net income came to $3.13 billion, or 48 cents per share, up from $173.3 million, or 3 cents per share, a year ago. Revenue rose 13 percent to $837.5 million, beating the $834.1 million expected by analysts.
Crude futures on Tuesday ended at their highest level in more than two months, extending gains to a third session on momentum and revived hopes for more stimulus in the United States. Crude for September delivery gained $1.47, or 1.6%, to $93.67 a barrel on the New York Mercantile Exchange.