Investing.com – U.S. stocks continued to add to recent gains as bullish quarterly earnings offset data showing weakness in the housing sector and ongoing concerns over the slowdown in inflation.
The Dow Jones Industrial Average closed higher at 23,152.92. The S&P 500 closed 0.07% higher while the Nasdaq Composite closed at 6624, up 0.01%.
Shares of IBM closed more than 9% higher after the technology giant posted earnings and revenue that topped expectations, lifting sentiment on the broader market.
IBM posted adjusted earnings per share of $3.30 on revenue of $19.15 billion Tuesday after the close. Analysts polled by Reuters expected the company to report earnings of $3.28 per share on sales of $18.6 billion.
The uptick in sentiment on earnings overshadowed data pointing to ongoing weakness the housing sector and sluggish inflation.
The central bank’s Beige Book economic report, based on anecdotal information collected by the Fed’s 12 reserve banks through October 6, showed continued weakness in wage growth while price pressures remained moderate, dampening expectations that a tight labor market would spur a rebound inflation.
The release of the Fed’s Beige Book came just hours after housing data fell short of expectations.
The Commerce Department said Tuesday U.S. homebuilding fell 4.7% to a seasonally adjusted annual rate of 1.127 million units in September, well below economists’ estimates of a 0.5% decline.
The report also highlighted a sharp 4.5% slump in building permits to a rate of 1.215 million units. That was below estimates of a fall to 1.245 million units.
On the corporate earnings front, investors awaited an earnings report from American Express Company (NYSE:AXP), Alcoa (NYSE:AA) and e-commerce giant eBay Inc (NASDAQ:EBAY) after U.S. markets close on Wednesday.
'Bulls and Bears' on Wall Street
The top Dow gainers for the session: International Business Machines (NYSE:IBM) up 8.9%, Goldman Sachs Group Inc (NYSE:GS) up 2.5% and Intel Corporation (NASDAQ:INTC) up 1.2%.
Chevron Corporation (NYSE:CVX) down 1.7%, Pfizer Inc (NYSE:PFE) down 1% and Apple Inc (NASDAQ:AAPL) down 0.4%, were among the worst Dow performers of the session.