US stocks advanced Tuesday as positive earnings results improved risk sentiment and as oil prices set a multi-year high.
The Dow Jones Industrial Average rose 0.6% to 35,457.31, with S&P 500 up 0.7% to 4,519.63 and the Nasdaq Composite also higher by 0.7% at 15,129.09. Healthcare, utilities and energy were the leading sectors, with all sectors except consumer discretionary in the green.
The 10-year US Treasury yield increased 5.5 basis points to 1.639%.
West Texas Intermediate crude oil climbed to a multi-year high of $83.74 a barrel earlier in the session, before easing to $82.86.
"The restrictive production policy pursued by OPEC+ is partly responsible" for the oil price increase, Commerzbank analyst Carsten Fritsch said in a note. "What is more, OPEC+ is not managing even to bring the agreed supply to the market...OPEC+ supply was around 750,000 barrels per day short in September alone."
Housing starts fell in September to a 1.56 million seasonally adjusted annual rate, down from August's revised 1.58 million but up 7.4% from a year earlier, according to the US Census Bureau. Analysts expected 1.62 million, according to Econoday.
"Seasonals played a big role in the increase in August, and they were far less favorable for the September data," said Jefferies economists Aneta Markowska and Thomas Simons. "This bodes well for a rebound next month, but supply constraints on labor and building materials continue to present challenges for homebuilders."
Johnson & Johnson (JNJ) reported year-on-year growth in its third-quarter results, with earnings topping analysts' views while revenue fell short of predictions even as the company lifted its 2021 forecast above Street expectations. Shares gained 2.3%, the second-highest on the Dow.
Procter & Gamble (PG) reiterated its full-year outlook but flagged more volatility as commodity and freight costs rise, which weighed on the fiscal first-quarter gross margin even though the consumer product giant's profit and revenue beat analysts' estimates. Shares fell 1.2%, the worst performance among Dow blue chips.
Ulta Beauty (ULTA) provided financial targets for fiscal years 2022 through 2024, including low double-digit EPS growth, along with an updated strategic framework aimed at increasing market share and driving profitable growth. Shares slumped 10.6%, the steepest decline on the S&P 500.
ProShares Bitcoin Strategy ETF (BITO) traded 4.9% higher in its New York Stock Exchange debut as the first bitcoin futures-based exchange-traded fund in the US.
In the metals markets, gold was up 0.3% to $1,770.20 per troy ounce, silver was up 2% to $23.74 an ounce, and copper slipped 0.9% to $4.69 per pound. Among energy ETFs, the United States Oil Fund was up 0.8% to $57.42 while the United States Natural Gas Fund rose 1.9% to $17.78.