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Dow, S&P 500 extend recent gains; PepsiCo a boost

Reuters  |  NEW YORK 

By Caroline Valetkevitch

NEW YORK (Reuters) - The Dow and 500 rose on Tuesday, extending recent gains as strong results from boosted optimism about the earnings season, while the Nasdaq was flat

PepsiCo's shares surged 4 percent and were poised for their biggest one-day jump in nearly seven years after the company's quarterly results topped estimates on strong sales of snacks.

The company also reaffirmed its full-year forecast amid signs of a gradual recovery in its soda

The consumer staples <.SPLRCS> was up 1 percent, driven by the gain in was up 1 percent.

Earnings are expected to become key for investors in the coming weeks as the U.S. reporting period kicks into high gear, shifting the focus away from trade tensions. The and slapped tit-for-tat tariffs on $34 billion of each other's goods on Friday.

"They sold into it (the tariff news), and then it bounced back nicely, but it seems like it's hitting a resistance area on the 500 of 2,800," said Alan Lancz, of Alan B. Lancz & Associates Inc, an investment advisory firm based in Toledo,

"Now it's maybe waiting until earnings on Friday for a catalyst."

, and are scheduled to report results on Friday. Their shares dipped on Tuesday after leading market gains on Monday.

The <.DJI> rose 129.34 points, or 0.52 percent, to 24,905.93, the <.SPX> gained 8.05 points, or 0.29 percent, to 2,792.22 and the <.IXIC> dropped 2.60 points, or 0.03 percent, to 7,753.60.

The S&P reached a peak of 2,795.58, its highest since March 13.

Overall, S&P 500 companies are expected to post second-quarter profit growth of around 21 percent, slightly higher than what was forecast in April, according to data.

However, investors and analysts will parse quarterly reports to gauge the impact of an escalating trade dispute between and the on company earnings.

Higher lifted The <.SPNY> rose 0.9 percent as gained on growing supply disruptions in and Libya, but gains were pared after the said it would consider requests for waivers from Iranian

Shares of and were up more than 1 percent each. The index <.SPLRCU> was up 1.4 percent, bouncing back from Monday's losses.

dropped 3.8 percent after the issued a bleak sales forecast for the rest of 2018.

(Additional reporting by in Bengaluru; Editing by and Jonathan Oatis)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, July 11 2018. 01:30 IST
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