U.S. Stocks Rally on Earnings and ECB Rumors

October 21, 2014 Share Print 0

U.S. stocks rallied on Tuesday, with the S&P 500 notching a fourth straight session of gains boosted by strong corporate results, including Apple’s. The S&P 500 and Dow Jones were up more than 1 percent while the Nasdaq rose more than 2 percent, thanks to better-than-expected results from several major tech companies.

The bullish tone was helped by a Reuters story that said the European Central Bank is considering buying corporate bonds. It led to active futures trading before the opening bell and helped lift European stocks from last week’s 13-month low. “That is allowing the market to breathe a little sigh of relief,” said Kevin Caron, market strategist at Stifel, Nicolaus & Co in Florham Park, New Jersey. “The market has come to fear the absence of central banks.”

The S&P 500 has gained more than 6 percent from its session low last Wednesday, when the benchmark nearly reached correction territory. It closed Tuesday above both its 14-day moving average and its 200-day average. The Dow Jones industrial average .DJI rose 215.14 points, or 1.31 percent, to 16,614.81, the S&P 500 .SPX gained 37.27 points, or 1.96 percent, to 1,941.28 and the Nasdaq Composite .IXIC added 103.40 points, or 2.4 percent, to 4,419.48.

Reuters

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