Investing.com – Investor appetite for riskier assets returned on Tuesday following signs of underlying strength in the U.S. economy after data showed consumer confidence rose to a nearly 17-year high ahead of the Federal Reserve’s interest rate decision due Wednesday.
The Dow Jones Industrial Average closed higher at 23,377.31. The S&P 500 closed 0.09% higher while the Nasdaq Composite closed at 6727.67, up 0.43%.
With the earnings season well underway, investors cheered better-than-expected earnings from both Mastercard Inc (NYSE:MA) and Pfizer (NYSE:PFE), as the latter posted an increase in revenue for the first time in four quarters.
Pfizer's total revenue rose 1% to $13.17 billion, in-line with Wall Street estimates but tightened its revenue forecast to $52.4 billion to $53.1 billion, from $52 billion to $54 billion.
Despite beating earnings estimates, Under Armour Inc A (NYSE:UAA) slumped more than 20% as the sports apparel maker cut its revenue growth outlook for the year amid intense competition in North America from both Nike (NYSE:NKE) and Adidas (DE:ADSGN).
The mixed batch of earnings came as economic data beat expectations, raising expectations that U.S. economic growth remains on track for a solid final quarter of the year.
The Conference Board’s consumer confidence gauge rose to 125.9 in October from 119.8 in September, beating economists’ forecast for a reading of 121.
Consumer sentiment is a leading indicator of consumer spending, which plays a major role in overall economic activity.
The Chicago Purchasing Managers' Index (PMI) jumped to 66.2, above the September reading of 65.2. That topped expectations for a reading of 61. As a leading indicator of the U.S. economy, the Chicago PMI helps economists measure business activity and new orders.
Traders shifted attention to monetary policy later in the session as the Federal Open Committee’s two day meeting got underway on Tuesday, with a decision on interest rates – widely expected to remain unchanged – set to be announced on Wednesday.
'Bulls and Bears' on Wall Street
The top Dow gainers for the session: Intel (NASDAQ:INTC) up 2.4%, Apple (NASDAQ:AAPL) up 1.4% and Chevron (NYSE:CVX) up 1.3%
General Electric Company (NYSE:GE), down 1.2%, Microsoft (NASDAQ:MSFT) down 0.8% and JPMorgan Chase & Co (NYSE:JPM) down 1.2%, were among the worst Dow performers of the session.