By April Joyner
NEW YORK (Reuters) – U.S. stocks rose on Tuesday as technology and internet stocks gained on Netflix Inc’s
Netflix shares jumped 6.3 percent after the video streaming company said it was raising prices for its U.S. subscribers. Other internet stocks, including shares of Alphabet Inc
The S&P 500 communication services index <.SPLRCL>, which includes Netflix and Alphabet, climbed 1.5 percent. S&P 500 technology stocks <.SPLRCT> advanced 1.4 percent.
Stocks also found support from hints by Chinese officials at more stimulus in the near term, easing concerns about a slowdown in the world’s second-largest economy.
“We’ve had good news today overall,” said J.J. Kinahan, chief market strategist at TD Ameritrade in Chicago. “China is helping to defuse the daily emotional roller-coaster that is tariffs, and that Netflix thinks it can raise its subscription prices is also really good.”
Wall Street’s major indexes briefly pared some gains after the British parliament defeated Prime Minister Theresa May’s Brexit divorce deal by a wide margin. The rejection of the deal could lead to a disorderly exit from the European Union or even to a reversal of the 2016 decision to leave the EU.
“As the (Brexit) headlines crossed the tape there was a knee-jerk reaction, but we’ve recovered because the outcome was largely priced in already,” said Chris Zaccarelli, chief investment officer of Independent Advisor Alliance in Charlotte, North Carolina.
The Dow Jones Industrial Average <.DJI> rose 132.01 points, or 0.55 percent, to 24,041.85, the S&P 500 <.SPX> gained 24.87 points, or 0.96 percent, to 2,607.48 and the Nasdaq Composite <.IXIC> added 107.07 points, or 1.55 percent, to 7,012.99.
Earlier in the day, gains were capped by disappointing earnings reports from big U.S. banks.
JPMorgan Chase & Co
JPMorgan shares erased the early losses and were last up 0.8 percent.
Health insurer UnitedHealth Group Analysts expect S&P 500 profits to have grown 14 percent in the fourth quarter, much lower than the 20.1 percent growth forecast in October, according to IBES data from Refinitiv.
Advancing issues outnumbered declining ones on the NYSE by a 1.60-to-1 ratio; on Nasdaq, a 1.71-to-1 ratio favored advancers.
The S&P 500 posted one new 52-week high and two new lows; the Nasdaq Composite recorded 22 new highs and 15 new lows.
(Reporting by April Joyner; Additional reporting by Sinéad Carew in New York and Medha Singh and Sruthi Shankar in Bengaluru; Editing by Anil D’Silva and Sonya Hepinstall)