NEW YORK (AP) -- Solid earnings for a range of big companies helped nudge the stock market higher Tuesday.
The restaurant chain Chipotle Mexican Grill and the cable giant Comcast surged after reporting better results than Wall Street expected.
"The news today is pretty good," said JJ Kinahan, chief strategist at TD Ameritrade. Kinahan pointed to a report out Tuesday that showed little sign of inflation and an overall stronger outlook for earnings. During conference calls to discuss quarterly results, more CEOs are taking an optimistic tone, he said, instead of warning about possible dangers.
"In the past, they all spent their time tempering expectations," Kinahan said. "This earnings season we’re not seeing that at all. I think people are taking comfort in it."
The Standard & Poor’s 500 index added 9.90 points, or 0.5 percent, to 1,983.53. The Dow Jones industrial average rose 61.81 points, or 0.4 percent, to 17,113.54. The Nasdaq composite advanced 31.31 points, or 0.7 percent, to 4,456.02.
Chipotle surged $69.84, or 12 percent, to $659.77, the biggest gain in the S&P 500 index. The burrito chain reported that stronger sales drove its quarterly profit up 26 percent. The restaurant chain’s results beat analysts’ expectations, even as it raised prices on a range of menu items.
Comcast, the country’s largest cable company, reported quarterly profits that topped Wall Street’s targets as more people signed up for Internet service.
Wall Street is in the middle of corporate earnings season, when companies release their quarterly results. Investors pore over those reports to gauge the financial health of Corporate America, and in turn, the U.S. economy. Roughly 150 companies in the S&P 500 will report their results this week, including AT&T and Boeing today. Visa and Amazon will report Thursday.