Stocks closed higher again on Wall Street, extending their gains following a sharp drop at the beginning of the week. Investors turned their attention to company earnings, which have started to roll in steadily. Small-company stocks outpaced the rest of the market again, rising 1.8%. Coca-Cola rose 1.3% after the company raised its full-year forecast and reported better-than-expected results. Chipotle Mexican Grill jumped 11.5% after the company also reported much better than expected results after the closing bell Tuesday. CNBC reports that the chain's quarterly revenue rose to pre-pandemic levels. The S&P 500 rose 35.63 points, or 0.8%, to 4,358.69. The Dow Jones Industrial Average rose 286.01 points, or 0.8%, to 34,798.00. The Nasdaq rose 133.08 points, or 0.9%, to 14,631.95. Despite Monday's steep drop, all three indexes are now positive for the week.
What's pushing stocks higher the last two days has been better-than-expected results from big corporations, the AP reports. Summer is typically a slow time for Wall Street, with investors and traders taking vacations and holding steady until later in the year. The dominant thing that will drive the market, with the exception of big economic reports, will be how well companies do versus expectations. Not all earnings were positive. Netflix fell 4%, the biggest decliner in the S&P 500, after reporting its worst slowdown in subscriber growth in eight years. Earnings season will kick into high gear next week, when more than 100 members of the S&P 500 will report their quarterly results. So far, earnings season has been strong, with more than 80% of the S&P 500 beating analysts' forecasts, according to FactSet.
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