U.S. stocks surged on Tuesday, with the Dow Jones Industrial Average rebounding after a five-session rout, as investors embraced better-than-expected quarterly earnings from companies including D.R. Horton and Pfizer.
Ford Motor climbed after the automaker posted a higher-than-expected quarterly profit; Apple fell after reporting iPhone sales missed Wall Street estimates. In a tweet Tuesday, Carl Icahn said he had just purchased another $500 million more Apple shares. D.R. Horton rallied after the homebuilder's sales picked up in January, with the company reporting its most profitable first quarter since 2006.
Of the 153 companies in the S&P 500 that have reported fourth-quarter results, 69.3 percent have reported earnings above Wall Street's estimates, while 68.6 percent have posted revenue that topped expectations, according to Greg Harrison, senior research analyst at Thomson Reuters.
"Earnings growth is not overwhelming, but enough to propel us forward," said Chip Cobb, portfolio manager at BMT Asset Management.