Stocks climb on earnings after drop on fake tweet
Companies that do best when the economy is improving led the market higher Tuesday, after several of them reported strong quarterly earnings.
Coach, a maker of luxury handbags, and Netflix, which streams TV shows and movies over the Internet, were winners after announcing profits that impressed investors.
That's a change from earlier this year. The stock market's surge in 2013 has been led by so-called defensive industries such as health care and utilities. Investors buy those stocks when they're unsure about the direction of the economy and want to own companies that make products people buy in bad times as well as good.
Stocks closed higher even after the markets were shaken when a fake tweet on The Associated Press Twitter account prompted a sudden sell-off. A posting saying there had been explosions at the White House and President Barack Obama had been injured was sent at 1:08 p.m. The Dow immediately plunged 143 points. AP said its Twitter account had been hacked.
Within five minutes, the Dow had snapped back. It closed up 152.29 points at 14,719.46. The Standard & Poor's 500 ended 1.04 percent higher at 1,578.78. The Nasdaq composite rose 1.11 percent to 3,269.33. -- AP