Stocks shook off an early wobble Tuesday on Wall Street, finishing modestly higher and extending the market's gains into a fourth week.
The benchmark S&P 500 index, which has risen for the past three weeks, gained 4.16 points, or 0.1 percent, to 2,779.76.
The Dow Jones industrial average rose 8.07 points, or 0.03 percent, to 25,891.32. The Nasdaq composite added 14.36 points, or 0.2 percent, to 7,486.77. The Russell 2000 index of smaller companies picked up 5.22 points, or 0.3 percent, to 1,574.47.
Major European indexes finished mostly lower.
Solid earnings from Walmart encouraged investors to bid up other retailers and consumer goods companies. Communication services stocks and banks also contributed to the broad gains.
Homebuilders also notched gains after an industry survey showing improved confidence among builders heading into the key spring homebuying season.
Roughly 81 percent of S&P 500 companies have reported results for the last three months of 2018, delivering earnings growth of 13.1 percent versus a year earlier, according to FactSet. First-quarter snapshots are expected to result in a 2.5 percent decline in earnings, however.
Even so, the strong quarterly performance from the world's largest retailer was an encouraging signal on U.S. consumer spending after a government report last week showed retail sales slumped in December.
"Now that we're winding down on earnings, investors are looking forward to what's going to move the market higher," said Karyn Cavanaugh, senior markets strategist at Voya Investment Management. "The fact that the consumer is still strong is a comfort to investors."
U.S. stock indexes got off to a downbeat start Tuesday as U.S. markets reopened after the Washington's Birthday holiday. They wavered between small gains and losses for most of the morning, then veered higher in late morning trading and held on to most of their gains the rest of the day.
London-based bank HSBC and oil and gas rig operator Transocean declined after both companies reported quarterly results that fell short of Wall Street analysts' forecasts. HSBC fell 3.1 percent, and Transocean lost 2.2 percent.
But Walmart's results helped lift the market.
The retailer rose 2.2 percent after its quarterly earnings beat forecasts. Walmart benefited from growth in online sales and the expansion of its grocery pickup and delivery business. Amazon gained 1.2 percent, while Target added 1.5 percent.
The latest round of company earnings showed solid profit growth for the final three months of 2018 but caution about conditions going forward amid signs of a weaker global economy this year. Europe and China have both reported slower growth.
Meanwhile, uncertainty over the costly trade conflict between the U.S. and China has also clouded the outlook for company profits.
"We still have that overhang of global growth and trade issues," Cavanaugh said, noting that traders are looking ahead now to company earnings for the first quarter with "a little trepidation."
Beyond the quarterly corporate report cards, investors were keeping a close eye on talks between U.S. and Chinese negotiators in Washington that are aimed at ending a trade war between the world's largest economies.
A truce between the U.S. and China on increased American tariffs on Chinese goods expires at the end of next week, leaving the U.S. free to more than double its import duties on $200 billion in Chinese goods.
Business on 02/20/2019