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Netflix shares surged 24.4 per cent (MIKE BLAKE/REUTERS)
Netflix shares surged 24.4 per cent (MIKE BLAKE/REUTERS)

The close: U.S. stocks recover from midday ‘crash’ Add to ...

Stocks rose on Tuesday, as major U.S. indexes embraced a round of strong earnings reports and recovered from a brief dip in afternoon trading, following a bogus report about explosions in the White House.

The S&P 500 closed at 1,578.78, up 16.28 points, or 1 per cent. The blue-chip Dow Jones industrial average closed at 14,719.46, up 152.29 points, or 1.1 per cent. In Canada, the S&P/TSX composite index closed at 12,090.94, up 0.26 point, or zero per cent.

The moves follow an intriguing interruption that nearly derailed early gains in the market. A false Twitter feed from the Associated Press reported that two explosions had hit the White House, injuring President Barack Obama.

The hoax sent the Dow briefly into the red, but the index recovered within minutes. AP said its Twitter account had been hacked, and the White House also provided clarification.

The moves also follow the biggest European rally in eight months, even as a readings on euro zone services and factory output in April pointed to the 15th straight contraction. The reading from Markit Economics, at 46.5, was in line with expectations, but nonetheless raised the idea that the European Central Bank will need to provide additional economic stimulus in the form of an interest rate cut.

In Europe, the FTSE 100 rose 2 per cent and Germany’s DAX index rose 2.4 per cent.

In the United States, new single-family home sales rose 1.5 per cent in March, in line with expectations.

Within the S&P 500, Apple Inc. rose 1.9 per cent during regular trading hours before reporting its fiscal second quarter results. It reported revenue of $43.6-billion (U.S.) and earnings of $10.09 per share, slightly ahead of expectations. The shares were almost flat in after-hours trading, falling just 13 cents.

Netflix Inc. surged 24.4 per cent after the movie-streaming company reported quarterly results on Monday evening, highlighted by a better-than-expected rise in new subscribers.

Bank of America Corp. rose 3 per cent after Morgan Stanley upgraded its recommendation on the stock to “overweight.”

E.I. du Pont de Nemours and Co. rose 4.1 per cent after its net income more than doubled in the first quarter and it said that growth fundamentals “remain solid.”

In Canada, materials dragged on performance after the price of gold fell to $1,414.60 an ounce, down $6.40, interrupting a five-day winning streak. Barrick Gold Corp. fell 2.6 per cent.

Rogers Communications Inc. fell 3.5 per cent after it reported its quarterly earnings on Monday evening, with disappointing subscriber growth.

 

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