U.S. stocks rose on Tuesday and healthcare shares gained as a Massachusetts election for the U.S. Senate put President Barack Obama's healthcare reform in jeopardy.
The S&P Healthcare Index <.GSPA> climbed 1.8 percent, led by Humana Inc
The bottom line there is it appears to be tilting toward the Republican, so in that case it's going to be tougher to get the bill as it was presented through the Senate passed, said Kurt Brunner, portfolio manager at Swarthmore Group in Philadelphia, Pennsylvania.
Gridlock is good, and that's what is probably the feeling coming from investors.
The Dow Jones industrial average <.DJI> gained 58.72 points, or 0.55 percent, to 10,668.37. The Standard & Poor's 500 Index <.SPX> rose 8.41 points, or 0.74 percent, to 1,144.44. The Nasdaq Composite Index <.IXIC> climbed 24.70 points, or 1.08 percent, to 2,312.69.
With the JPMorgan number last week there was lowered expectations for the banks, said Stephen Massocca, managing director, Wedbush Morgan in San Francisco. When people saw the retail side of JPMorgan, that's pretty much what you saw with Citibank.
Kraft Foods Inc
The pace of corporate earnings builds later in the week, with IBM Corp
Brink's shares surged 31.8 percent to $41.41.
Semiconductor stocks helped push the Nasdaq higher, with chipmaker Xilinx Inc
The PHLX Semiconductor index <.SOXX> advanced 1.3 percent.
Parker Hannifin Corp
(Additional reporting by Leah Schnurr; Editing by Padraic Cassidy)