U.S. stocks rose Tuesday on news about a spinoff in the telecommunications sphere that sent most stocks in the sector soaring and on better-than-expected results from Pfizer and Merck.
Continue Reading Below
The strategy triggered bets on long-term advantages for peers and the S&P telecoms sector index rose 3.9 percent with AT&T
The Windstream spinoff's long reach boosted shares in other network owners and operators, with Comcast
"The market to some degree has been locked into a range and struggling to find leadership of late, so the movement in telecoms is important in that regard," said Gordon Charlop, a managing director at Rosenblatt Securities in New York.
Dow components Merck
The Dow Jones industrial average rose 58.51 points or 0.34 percent, to 17,041.1, the S&P 500 gained 4.66 points or 0.24 percent, to 1,983.57 and the Nasdaq Composite added 24.35 points or 0.55 percent, to 4,469.26.
U.S. consumer confidence jumped in July to a high not seen since October 2007 but single-family home prices fell 0.3 percent in May on a seasonally adjusted basis, falling short of expectations.
"The data has been unremarkable, there's nothing in there to cause the market to deviate from its current trajectory," said Charlop. "Unless we have earnings surprises I don't see anything that will derail the move to the upside."
The Federal Reserve began a two-day meeting on monetary policy. The Fed could make subtle yet telling changes to its policy statement due Wednesday, as it plans how and when to eventually raise interest rates.
Limiting gains on the Dow industrials, shares of UPS
Shares of health insurer Aetna