Stocks Log 1% Rally on Earnings; Apple Jumps
Stocks finished near session highs Tuesday, with the Dow and the S&P 500 back in the black for October, boosted by a batch of better-than-expected earnings reports.
After-Hours Buzz: INTC, IBM, C & More
The Dow Jones Industrial Average jumped 127.55 points, or 0.95 percent, to close at 13, 551.78, led by Caterpillar and Intel .
With the recent gains, the Dow and S&P are now nearly 5 and 7 percent away, respectively, from their all-time closing highs in October 2007.
The CBOE Volatility Index, widely considered the best gauge of fear in the market, dipped near 15.
Most key S&P sectors ended in positive territory, led by materials and energy .
"You have great news out of Europe and then you have good earnings news and macro data so it's a risk on day, but we're going to keep hitting our head at the 1, 460 level [on the S&P 500] unless there's some more headway made in Washington, " said Kenny Polcari, managing director at ICAP Equities.
Citigroup gained after CEO Vikram Pandit announced he is stepping down from his position at the investment bank. Michael Corbat, who currently serves as the head of Citi's Europe, Middle East and Africa (EMEA) operation, will succeed Pandit. President and Chief Operating Officer John Havens also resigned.(Read More: Meet Michael Corbat, Citigroup's New Boss)
"Regulatory, legislative and economic changes around the world present headwinds as we redefine our relationships with all of our stakeholders, " wrote Corbat in an internal memo. "To thrive, we must be vigilant about how we allocate our resources to ensure we are serving our clients and offering the products with the highest potential in the most productive markets."
The announcement comes a day after Citi posted quarterly results that topped analysts' expectations .
Among other financials, Goldman Sachs reported quarterly results that beat analysts' expectations and increased its dividend. But shares dipped into negative territory in volatile trading.
Coca-Cola reported earnings that matched Wall Street expectations, but revenue fell slightly short , hurt by the stronger U.S. dollar.
Johnson & Johnson edged higher after the drugmaker reported quarterly results that beat analysts' expectations .
And newly-minted Dow component UnitedHealth reported earnings that were higher than a forecast the company gave earlier this month. The health insurer also boosted its full-year profit outlook.
IBM, Intel and CSX are slated to post earnings after the closing bell.
Apple climbed after the tech giant announced it will hold a media event on October 23. The event is widely assumed to be an introduction of an iPad mini .
A123 Systems plummeted more than 70 percent after the battery maker filed for bankruptcy protection and quickly sold its automotive assets, hurt by weak sales of electric cars.
"Looking ahead, we continue to believe the underlying fundamentals for the economy and the stock market remain positive, " wrote Gary Thayer, chief macro strategist at Wells Fargo Advisors. "However, the election and the willingness of Congress to address the 'fiscal cliff' will determine whether the road ahead will be smooth or rough."
On the economic front, homebuilder sentiment gained for the sixth month to touch a six-year high in October, but momentum eased, according to the National Association of Home Builders.
Consumer prices rose 0.6 percent in September , according to the Labor Department, matching analysts' expectations and the prior month's reading.
Industrial output rebounded to 0.4 percent in September , according to the Federal Reserve. Analysts polled by Reuters had forecast a 0.2 percent rise compared to a 1.4 percent decline in August.
European shares ended higher, lifted by better-than-expected investor sentiment data from Germany and ongoing reports that Spain is preparing to seek a bailout package . The Spanish IBEX index remained firmly in the black.
—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
Coming Up This Week:
WEDNESDAY: Weekly mortgage apps, housing starts, oil inventories; Earnings from BofA, PepsiCo, Bank of NY Mellon, Blackrock, Northern Trust, US Bancorp, AmEx, Ebay
THURSDAY: Jobless claims, Philadelphia Fed survey, leading indicators; Earnings from Morgan Stanley, Phillip Morris, Travelers, Union Pacific, Verizon, Fifth Third, Huntington Bancshares, KeyCorp, Nokia, Google, Microsoft, AMD, Capital One, Chipotle, E-Trade
FRIDAY: Existing home sales; Earnings from GE, McDonald's, Schlumberger, Honeywell, Edward Lifesciences
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