U.S. stocks surged on Tuesday, with the S&P 500 and the Nasdaq Composite extending gains into a fourth day, as investors embraced earnings from corporations including Apple, Texas Instruments and United Technologies.
"When you look at Apple, it almost takes your breath away. It's such a big company, and so important to the S&P 500 and the technology sector, so it has a lot of weight," said Hugh Johnson, chairman of Hugh Johnson Advisors, who owns Apple shares, but would not purchase more at current prices.
Verizon Communications gained after the wireless carrier tallied revenue above estimates; Coca-Cola and Chipotle Mexican Grill were active to the downside, as the beverage maker and Dow member cited currency headwinds in cutting its growth outlook, and the burrito chain signaled increased growth in quarterly sales would not continue forever.
The CBOE Volatility Index, a gauge of investor uncertainty, fell more than 13 percent to 16.08.
"The stock market in late September was 4 percent overvalued and optimism was widespread; everybody knew corrections occur and we were overdue. Of course when they do happen it really shakes our confidence. We moved from being 4 percent overvalued at one point in time to 8 percent undervalued, so pessimism started to take over. We went from conditions that were bad for stocks to conditions that are good news for stocks," Johnson said.
Benchmark indexes held and then added gains after a report had sales of U.S. existing homes in September increasing to a