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* IBM jumps after quarterly profit beat
* Coca-Cola rises after signaling recovering demand
* Indexes up: Dow 1.01%, S&P 0.60%, Nasdaq 0.07%
(Updates to open)
By Medha Singh and Devik Jain
July 21 (Reuters) - U.S. stocks advanced on Tuesday
following a slate of positive earnings reports from companies
including IBM and Coca-Cola, and on hopes for fiscal stimulus to
prop up an economy reeling from the COVID-19 pandemic.
The Nasdaq treaded water after hitting an intraday record
high shortly after the opening bell, as shares of Amazon.com Inc
AMZN.O weighed.
Coca-Cola Co KO.N rose 3.9% as it said demand for its
sodas were improving after the "most challenging" quarter for
the year. International Business Machines Corp IBM.N jumped 2.7%
after it signaled higher demand in its cloud computing business,
as large corporations accelerate their digital shift.
"If this economic recovery slowly continues, tech stocks
will probably continue to be one of the leaders. Technology is
up to the altar and they need to justify so much of this
strength and earnings," said Ryan Detrick, chief market
strategist at LPL Financial in Charlotte, North Carolina.
With the second quarter expected to see the worst of the
pandemic's hit on profits, investors are more focused on hints
on how long corporate America would take to bounce back.
The S&P 500 closed higher for the year and the Nasdaq
notched a record closing high on Monday after promising early
data from trials of three potential vaccines and a boost from
high-flying companies including Amazon.com Inc AMZN.O and
Microsoft Corp MSFT.O .
U.S. lawmakers and White House officials headed into a day
of negotiations on Capitol Hill on Tuesday, aimed at hammering
out an agreement on new coronavirus aid legislation as
infections and deaths surged to record levels across the
country. The U.S. government has less than two weeks to agree on a
legislative package before additional unemployment assistance
runs out for tens of millions of Americans.
Overnight, European Union leaders agreed on a massive
coronavirus relief program. At 9:44 a.m. ET, the Dow Jones Industrial Average .DJI was
up 269.28 points, or 1.01%, at 26,950.15, the S&P 500 .SPX was
up 19.65 points, or 0.60%, at 3,271.49. The Nasdaq Composite
.IXIC was up 7.40 points, or 0.07%, at 10,774.49.
Lockheed Martin Corp LMT.N rose 2.6% as the U.S. weapons
supplier raised its full-year profit and revenue forecasts
driven by higher quarterly sales in its aeronautics unit that
makes the F-35 fighter jet. Energy sectors .SPNY jumped 4%, more than any other S&P
sector. Technology .SPLRCT and consumer discretionary
.SPLRCD stocks were in the red. O/R
Advancing issues outnumbered decliners for a 5.51-to-1 ratio
on the NYSE and a 2.59-to-1 ratio on the Nasdaq.
The S&P index recorded 35 new 52-week highs and no new low,
while the Nasdaq recorded 87 new highs and one new low.
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