By Yasin Ebrahim
Investing.com – The S&P 500 climbed Tuesday, underpinned by strength in economically-sensitive cyclical sectors including energy and industrials.
The Dow Jones Industrial Average rose 0.59%, or 205 points. The S&P 500 added 0.6%, and the Nasdaq was up 0.3%.
Energy led the broader market higher, led by 7% surge in the Pioneer Natural Resources (NYSE:PXD) after oil and gas reported quarterly earnings that fell just short of estimates, but its capital return strategy drew a positive reaction from Wall Street.
“PXD has significantly lagged peers Eog Resources/ConocoPhillips year to date following the DP acquisition, but the shift in the return of capital strategy is a step in the right direction on potentially recapturing some relative performance into year end,” Tudor, Pickering, Holt & Co. said in a note.
EOG Resources (NYSE:EOG) and ConocoPhillips (NYSE:COP) were up more than 3% and 5%, respectively.
Industrials also supported the broader market melt up even as a fall in airlines stocks weighed on the sector amid concerns about the threat of the delta variant of Covid-19 global travel.
American Airlines (NASDAQ:AAL) fell 2%, while United and Alaska Air (NYSE:ALK) were down almost 1%.
The earnings front, meanwhile, served up mixed quarterly results.
Under Armour (NYSE:UAA) reported better-than-expected quarterly results and lifted its guidance for the full-year forecast, sending its share price more than 4% higher.
Alibaba Group (NYSE:BABA) fell 2% after reporting second-quarter earnings that topped earnings, but revenue fell short as the e-commerce giant continues to ramp-up investment in growth opportunities.
Eli Lilly and Company (NYSE:LLY) also reported mixed quarterly results as earnings of $1.87 fell just short of expectations but revenue of $6.74 billion topped estimates.
Large cap tech, with exception of Facebook continued to climb higher.
Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), Amazon.com (NASDAQ:AMZN) were higher, while Facebook (NASDAQ:FB) was in the red.
In other news, Robinhood Markets (NASDAQ:HOOD) surged 27% to rise above its initial public offering price of $38 for the first time as ARK Invest’s Cathie Wood is understood to have been buying shares of the company.