The Dow Jones Industrial Average advanced 208 points or 0.85 percent to 24,754 during midday Tuesday driven heavily by strong first quarter earnings. The S&P 500 Index gained 1 percent to 2,704. The Nasdaq Composite gained 1.55 percent to 7,267.
Netflix Inc. (NASDAQ: NFLX) and Goldman Sachs (NYSE: GS) paved the way for the strong market open. Both the companies crushed earnings estimates. Netflix shares surged throughout Tuesday, gaining 9.6 percent. Goldman Sachs opened higher at 1.4 percent before plummeting to 2.4 percent in the red. UnitedHealth Group Inc. (NYSE: UNH) also contributed by gaining 2.73 percent.
Netflix reported revenue growth of 43 percent year over year in Q1, the fastest pace in the history of the company, due to a 25 percent increase in average paid streaming memberships and a 14 percent rise in ASP.
Goldman Sachs reported revenue of $10.04 billion, increasing 25 percent year over year and topping Thomson Reuters analysts’ by $1.15 billion. The firm reported an EPS of $6.95, surpassing Thomson Reuters analysts’ estimates of $5.58.
Technology stocks rallied on Tuesday as their financial results approach and Netflix’s strong results.. Twitter Inc. (NYSE: TWTR) rose by 11.48 percent, Amazon.com Inc. (NASDAQ: AMZN) rose by 3.59 percent, Apple Inc. (NASDAQ: AAPL) rose by 1.36 percent, Alphabet Inc. (NASDAQ: GOOGL) rose by 3.49 percent and Microsoft Corporation (NASDAQ: MSFT) rose by 2.3 percent.
China said on Tuesday its plans to remove rules requiring foreign automakers to share ownership and profits from factories in China with Chinese companies by 2022. This will allow automakers such as Tesla Inc. (NASDAQ: TSLA) to avoid the current implemented 25 percent tariffs and setting up joint ventures.
Housing starts rebounded in March jumping to 1.31 million, increasing 2 percent compared to February and surpassing Reuters’ estimate of 1.26 million.
Markets were also boosted by temporary ease of escalating conflicts in Syria. The U.S., Britain and France carried out a missile strike against Syria in response to the recent chemical attack.
North Korea and South Korea have been in ceasefire in its 68-year old war, but now reports have emerged of the two entering talks to end the war, the Munhwa Ilbo newspaper reported, citing a South Korean official. The news eased tensions in Asia. The U.S. may see some progression with the two Korean nations.