By Yasin Ebrahim
Investing.com – The S&P 500 racked up gains Tuesday, as dip-buyers returned to big tech stocks, shrugging off an ongoing melt-up in rates ahead of the quarterly results from Netflix and IBM .
The S&P 500 rose 1.4%, the Dow Jones Industrial Average was up 1.3%, or 440 points, the Nasdaq climbed 1.81%.
Big tech attracted dip-buying action intraday, with Facebook (NASDAQ:FB) and Amazon (NASDAQ:AMZN) leading the upside rising more than 2%. Alphabet (NASDAQ:GOOGL), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT) were mostly up more than 1%.
An ongoing rally in Treasury yields failed to sour sentiment in tech as investors shifted focus to quarterly earnings, with IBM (NYSE:IBM) and Netflix set to report results after the closing bell.
Netflix (NASDAQ:NFLX) is expected to garner most of the attention after dropping more than 40% from its peak. Wall Street expects the streaming giant to report earnings of $2.95 a share on revenue of $7.94 billion, and net subscriber additions of about 2.8 million for Q1.
Twitter (NYSE:TWTR), meanwhile, remained in headlines on reports that Apollo Global Management (NYSE:APO) is reportedly weighing up financing a potential takeover offer for the social media company.
Johnson&Johnson (NYSE:JNJ) erased early losses to climb 3% despite trimming its profit forecast for the full year and pulling its guidance on Covid vaccine sales following mixed first-quarter results.
Hasbro (NASDAQ:HAS) raised its full-year profit outlook after reporting a quarterly earnings miss. Its shares were up more than 5%.
Consumer discretionary stocks were also in ascendency, supported by a rally in travel and leisure stocks including Penn National Gaming (NASDAQ:PENN), Las Vegas Sands (NYSE:LVS) and Carnival Corporation (NYSE:CCL) as investors looked ahead to a pick-up in travel demand as the pandemic cools.
Airline stocks including Delta Air Lines (NYSE:DAL), United Airlines (NASDAQ:UAL), American Airlines (NASDAQ:AAL) were also sharply higher after the Transportation Security Administration stopped its mandatory mask rule on planes.
Tesla (NASDAQ:TSLA) was up more than 1%, adding further strength to the rise in consumer discretionary stocks, as investors piled into the electric vehicle maker ahead of its quarterly results due Wednesday after the closing bell.
Energy was the sole sector in the red as oil prices fell for the second-straight day amid concerns about the impact on energy demand of slowing global growth in the wake of the Russia-Ukraine war.
The IMF cut its global growth forecast by 3.6% in both 2022 and 2023, from prior forecasts of 4.4% and 3.8% respectively.
In other news, Plug Power (NASDAQ:PLUG) jumped more than 8% after the fuel cell company clinched a deal to provide Walmart (NYSE:WMT) with liquid green hydrogen to power the latter’s forklifts and trucks in its U.S. distribution and fulfilment centers.