Stocks lifted on Tuesday thanks to strength in the technology sector, with the major averages closing near their best levels of the day. The S&P 500 added 0.3%. The Nasdaq Composite gained 0.9%. The Dow Jones Industrial Average underperformed, losing 0.3%.
At the lows of the day, the S&P 500 was down as much as 0.9%. All eyes were on Apple Inc. (NASDAQ:AAPL) which gained 2.3% ahead of results after the close. And they were good: Earnings of $2.73 per share beat estimates by five cents on a 15.6% rise in revenues. iPhone shipments totaled 52.2 million vs. 52 million expected and 50.8 million the year prior. The dividend was raised 16% and a new $100 billion share repurchase program was announced.
Besides technology, four other sectors finished in the green including financials, consumer discretionary, healthcare, and real estate. Pfizer Inc. (NYSE:PFE) fell 3.3% after the company reported upbeat earnings on weak revenues. Merck & Co., Inc. (NYSE:MRK) fell 1.5% on in-line revenues despite solid earnings and higher guidance.
Looking ahead, the Federal Reserve’s latest policy statement is due Wednesday. No rate hike is expected, although a surprise can’t be ruled out. Watch for a confirmation of a June hike and language highlighting the recent firming of inflationary pressures.
Check out Chris Tyler’s Trade of the Day for May 2.
Today’s Trading Landscape
To see a list of the companies reporting earnings today, click here.
For a list of this week’s economic reports due out, click here.
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