Earnings spur stocks upward

U.S. stocks rallied for a second day amid better-than-expected earnings from industry heavyweights, adding to evidence that the strengthening economy is lifting corporate profits.

The S&P 500 Index rose to the highest in four weeks as the benchmark pushed through its average price for the past 100 days, a level it hasn’t crossed in a month. Netflix Inc. surged after subscriber growth topped estimates, helping to drive gains in technology shares, and UnitedHealth Group Inc. climbed after reporting strong results.

The spate of earnings overshadowed renewed machinations on the trade front, where China retaliated for the U.S.’ hit on ZTE Corp. with agricultural duties. The world’s second-largest economy also said it will ease access to its market, boosting automakers from Volkswagen AG to Tesla Inc.

“Markets have tended to rally during earnings season, and I think some of that optimism, some of the sentiment is coming through the market right now,” Matt Forester, chief investment officer who helps oversee $7.9 billion at Lockwood Advisors Inc. in Pennsylvania, said by phone. “We went into Friday night with missiles flying into Syria and a lot of political news, and here we are Tuesday afternoon and nobody is even thinking about that anymore. It’s off the front page already.”

The dollar largely shrugged off President Donald Trump’s latest intervention in currencies. The jawboning comes at a time of already elevated geopolitical tension, and ongoing fears of a lurch toward global protectionism. Meanwhile, Federal Reserve officials are due to speak this week. Treasury yields edged lower and West Texas crude traded near $66 a barrel.