Investing.com – The tech-heavy Nasdaq closed at record highs Tuesday, led by a rebound in Netflix from its lows and a surge in Amazon, as the e-commerce giant's 'Prime Day' sales bonanza triggered a sharp uptick in sales.
The Dow Jones Industrial Average rose about 0.22%. The S&P 500 gained roughly 0.40%, while the Nasdaq Composite added about 0.63%.
Bargain-hunting investors piled into Netflix (NASDAQ:NFLX) stock after it plunged more than 14% intraday on the back of a weaker-than-expected quarterly report.
The streaming giant said Monday after markets closed that it added just 5.2 million subscribers in the second quarter of the year. That was well below the company's own guidance of about 6.2 million new user additions for the quarter.
Tech was further bolstered by a surge in Amazon (NASDAQ:AMZN) to record highs after a report suggested the e-commerce giant 'Prime Day' sales growth soared year on year in the first 12 hours of the sales event.
Sales soared by 89% in the first 12 hours of Prime Day compared to the first 12 hours last year, according to Feedvisor.
Positive earnings from Goldman Sachs, Johnson & Johnson and UnitedHealth Group also boosted the broader market.
Goldman Sachs posted earnings that topped consensus, while UnitedHealth reported above-consensus earnings, but premiums fell short. Johnson & Johnson, meanwhile, topped consensus on both the top and bottom lines.
Goldman Sachs also revealed, as was widely expected, that David M. Solomon would succeed Lloyd Blankfein as the bank's chief executive officer.
Sentiment on equities was also supported by Federal Reserve Chairman Jerome Powell's upbeat assessment of the economy.
"Our policies reflect the strong performance of the economy and are intended to help make sure that this trend continues," Powell said.
Powell will remain in focus Wednesday as he slated to testify before the House Financial Services Committee.
The rally in the broader market was held back, however, by continued weakness in the energy sector, as oil prices remained under pressure despite rebounding from a nearly one-month low intraday.
On the New York Mercantile Exchange crude futures for August delivery gained 2 cents to settle at $68.08 a barrel.
In economic news, a rebound in U.S. industrial production in June amid a renewed manufacturing output, and gains in mining production, had a somewhat muted impact on market direction.
On the political front, U.S. President Donald Trump walked back his comments on Russia's meddling in the U.S. election, insisting that he had meant to say: "I don’t see any reason why it wouldn’t be Russia.”
Top Gainers and Losers on Wall Street Today:
The top Dow gainers for the session: Johnson & Johnson (NYSE:JNJ) gained roughly 3.5%, DowDuPont (NYSE:DWDP) rose about 2.04% and Microsoft (NASDAQ:MSFT) added about 0.99%.
UnitedHealth Group (NYSE:UNH) down about 2.6%, IBM (NYSE:IBM) off 1.35% and Chevron (NYSE:CVX) down roughly 0.87%, were among the worst Dow performers of the session.