U.S. stocks rose on Tuesday, with the Dow extending gains into a fourth day and the S&P 500 and NASDAQ Composite higher on the month, as investors embraced corporate earnings, a rise in consumer sentiment and anticipated the end of the Federal Reserve's bond buys.
The Dow Jones Industrials skyrocketed 187.81 points, or 1.1%, to 17,005.75
The S&P 500 leaped 23.42 points to 1,985.05. The NASDAQ index gained 78.36 points to 4,564.29.
Amgen jumped after hiking its full-year outlook; T-Mobile US climbed after the wireless carrier increased its estimate for subscribers; Twitter shares fell after the social network matched earnings estimates and beat revenue forecasts, but offered disappointing user metrics.
Merck & Co. weighed on the Dow, as cost-cutting allowed the pharmaceutical company to beat third-quarter earnings estimates but soft sales of major products hit shares, and International Business Machines said its board had approved a $5 billion share buyback in addition to the $1.4 billion U.S. still in its existing program.
U.S. consumer confidence rose in October to its highest since October 2007 as views on the job market improved, but separate data showed new orders for capital goods by U.S. businesses fell the most in eight months in September. U.S. single-family home prices rose in August on a year-over-year basis but fell short of expectations.
Weaker-than-expected economic reports sapped sentiment ahead of the opening bell. Government data showed orders for durable goods fell unexpectedly in September, while home prices edged up by less than forecast in August.
Investors turn their attention to the two-day Federal Open Market Committee meeting that concludes on Wednesday, at which the Federal Reserve officials are widely expected to end the bond-buying stimulus program.
Prices for 10-year U.S. Treasuries dipped, raising yields to 2.28% from Monday's 2.26%. Treasury prices and yields move in opposite directions.
Oil prices recovered 43 cents to $81.43 U.S. a barrel.
Gold prices fell $1.60 to $1,227.70 U.S. an ounce.