Stocks rose at the open on Tuesday, with the Dow industrials climbing as much as 1 percent, as investors welcomed a slew of corporate results and a decline in borrowing costs for Spain.
A better-than-expected Spanish bill sale boosted confidence as yields on Spain's 10-year bond dipped below 6 percent before a longer-term debt auction later in the week. Spanish debt yields have jumped recently on concerns about the nation's fiscal stability in the latest flare-up of the euro-zone debt crisis.
Goldman Sachs Group Inc
Earnings are coming in well enough to support the market and stabilize any significant downdraft. Spain specifically with the 10-year yield topping 6 percent, that is a headline that really instills fear into the market. said Peter Kenny, managing director at Knight Capital In Jersey City, New Jersey.
And though the earnings environment will continue to get more challenging moving forward into this recovery, there is no question earnings have been supportive of the market.
Johnson & Johnson
According to Thomson Reuters data, of the 39 companies in the S&P 500 that have reported results through Tuesday, 74.4 percent have reported earnings above analyst expectations. This week, 86 S&P 500 companies are scheduled to report results.
The Dow Jones industrial average <.DJI> gained 108.08 points, or 0.84 percent, to 13,029.49. The Standard & Poor's 500 Index <.SPX> rose 10.41 points, or 0.76 percent, to 1,379.98. The Nasdaq Composite Index <.IXIC> added 30.33 points, or 1.01 percent, to 3,018.73.
Economic data in the United States was mixed as groundbreaking on homes fell unexpectedly in March, but permits for future construction rose to their highest level in 3 1/2 years. The PHLX housing index <.HGX> gained 1.4 percent.
A Federal Reserve report showed industrial output was flat for a second straight month in March, held back by a drop in manufacturing, and capacity utilization, a measure of how fully firms are using their resources, fell to 78.6 percent from 78.7 percent in February.
International Business Machines Corp
A unit of Toshiba Corp <6502.T> is in talks to buy IBM Corp's point-of-sale terminal business, which includes cash registers, a source familiar with the deal said on Tuesday. IBM shares gained 1.2 percent to $205.18 to lead the Dow.
(Editing by Padraic Cassidy)