UKX FTSE 100 Index

By Riva Gold and Allison Prang 
   -- U.S. stock indexes rise 
 
   -- Asian tech under pressure following ZTE action 
 
   -- Stoxx Europe 600 climbs 

U.S. stocks rose Tuesday, driven by strong corporate results, extending Monday's rally and sending the Dow industrials back into positive territory for 2018.

Major indexes have gained eight out of the past 11 trading sessions, but volumes have been light, suggesting some investors are remaining on the sidelines as geopolitical tensions simmer.

The Dow Jones Industrial Average climbed 213.59 points, or 0.9%, to 24786.63, its highest close since March 16. The S&P 500 added 28.55 points, or 1.1%, to 2706.39, as 10 of the index's 11 sectors traded higher. The tech-heavy Nasdaq Composite rose 124.81 points, or 1.7%, to 7281.10. Those two indexes ended at their highest levels since March 21.

The blue-chip index is up 0.3% for the year, while the S&P 500 has gained 1.2% and the Nasdaq Composite has risen 5.5%.

Helping boost sentiment, Netflix shares jumped $28.28, or 9.2%, to $336.06 -- a record -- after the video-streaming service reported subscriber growth that beat its own forecast. The stock is by far the best performer in the S&P 500 this year with a gain of 75%.

"The FANGs [Facebook, Amazon.com, Netflix and Google parent Alphabet] are very important; they seem to be a barometer for all stocks," said Christopher Peel, chief investment officer at Tavistock Investments. In light of recent pressure on technology companies, "the tech sector is vulnerable to a selloff if any of the big five or six companies have a miss [on earnings]," he said. Shares of the FANG companies each gained more than 2%.

Results from Netflix are also the first real gauge of whether world-wide consumer demand picked up in the first quarter, said JJ Kinahan, chief market strategist at TD Ameritrade. "You really want to hear that tech stocks are doing well and seeing demand and growth world-wide," he said.

Among other companies posting results, Goldman Sachs Group shares fell 4.25, or 1.7%, to 253.63, after the bank said it wouldn't buy back shares in the second quarter, though it reported higher profit and revenue than expected. Goldman helped drive down financial stocks in the S&P 500, which were the only sector in the red, as Treasury yields also slumped.

Morgan Stanley will conclude earnings season for big U.S. banks when it reports Wednesday morning.

Meanwhile, UnitedHealth Group, the biggest U.S. health insurer, rose 8.23, or 3.6%, to 238.55, after reporting a 31% increase in earnings and lifting its profit outlook for the year. Johnson & Johnson shares fell 1.22, or 0.9%, to 130.54, after the company increased its sales guidance but not its profit estimates.

Dan Morgan, senior portfolio manager at Synovus Trust, said it is time for the market to focus on the fundamentals rather than negative possibilities like effects from tariffs or legislation against Facebook.

"You're just starting to see the beginning" of a solid first quarter, he said.

Still, many analysts expect the earnings season to offer only a limited boost to the equity market in light of high expectations and continued uncertainty about trade and tensions around Russia and Syria.

"The early take is things are good...but there's a lot of nervousness going forward because the geopolitical scene is a constantly changing one," Mr. Kinahan said.

Elsewhere, the Stoxx Europe 600 added 0.8%, and the multinational-heavy FTSE 100 edged up 0.4% after grappling with a strengthening British pound to start the week.

Chinese technology shares fell sharply after the U.S. Commerce Department banned American companies from selling products to ZTE, a telecom-equipment company in China, saying the company violated the terms of a deal last year settling allegations of sanctions-busting involving North Korea and Iran.

Hong Kong's Hang Seng Index fell 0.8%, while the Shanghai Composite Index closed down 1.4% at its lowest level since May 2017.

Write to Riva Gold at riva.gold@wsj.com and Allison Prang at allison.prang@wsj.com

(END) Dow Jones Newswires

April 17, 2018 17:39 ET (21:39 GMT)

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