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Estée Lauder shares were among the session's strongest gainers, as the cosmetics company reported better-than-expected fiscal second-quarter profit and revenue on Tuesday, with net sales passing the $4 billion mark for the first time.
Clothing retailer Ralph Lauren swung to a fiscal third-quarter profit as its revenue in the period beat Wall Street expectations. It also raised its full-year guidance on revenue.
Viacom's fiscal first-quarter earnings declined but topped analyst estimates and affliate revenue rose. However, its flagship cable networks suffered a 6 percent decline in advertising revenue.
Investors also were optimistic about Electronic Arts earnings.
The day's gains came after President Trump and Federal Reserve Chairman Jerome Powell met late Monday in a meeting that reaffirmed the central bank's intention to take a go-slow approach to interest rate hikes.
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During the informal, 90-minute dinner at the White House, Powell stressed the importance of economic data in establishing monetary policy for the Fed.
The meeting covered a variety of economic topics, the Fed said in a statement, but did not delve into expectations of future monetary policy decisions.
Shares also closed higher ahead of Trump's yearly State of the Union speech before Congress. The Tuesday evening speech comes a week later than scheduled after House Speaker Nancy Pelosi yanked the original invitation during their showdown over the government shutdown.
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In economic news, the U.S. services sector expanded at a slower pace in January, a sign uncertainty surrounding the partial government shutdown pinched growth in the first month of the year.
The Institute for Supply Management's non-manufacturing purchasing managers index fell to 56.7 in January from 58.0 in December.
In Asia on Tuesday, markets in Hong Kong and China are closed for the Lunar New Year holiday. Japan’s Nikkei ended 0.2 percent lower.
In Europe, the major markets ended the day with gains. London’s FTSE added 2 percent, Germany’s DAX gained 1.7 percent and France’s CAC was up 1.7 percent.
FOX Business' Ken Martin contributed to this report.