Hack crash blip fails to dent US stock increase

US stocks climbed yesterday in a broad rally, recovering from sharp declines sparked by a “bogus” Associated Press tweet about explosions at the White House.

Thomson Reuters data showed the benchmark S&P 500 index fell 14.6 points, or 0.93 per cent, in the space of three minutes when the tweet hit the market.

Stocks had seen a solid advance before the tweet, lifted by a host of strong corporate earnings, including Travelers Cos, Netflix and Coach.

After the closing bell, Apple climbed 4.9 per cent to $425.95 after the iPad and iPhone maker reported second-quarter earnings and unveiled plans to double the amount of capital it returns to shareholders.

The Dow Jones industrial average rose 152.29 points, or 1.05 per cent, to close at 14,719.46.

The Standard & Poor’s 500 Index gained 16.28 points, or 1.04 per cent, to finish at 1,578.78.

The Nasdaq Composite Index advanced 35.78 points, or 1.11 per cent, to end at 3,269.33.

Netflix shares jumped 24.4 per cent to $216.99 while Coach shot up 9.8 per cent to $55.55.

They were the S&P 500’s two biggest percentage gainers.

Earnings season has been largely positive, with more than 68.9 per cent of S&P 500 companies that have reported results so far beating expectations, according to Thomson Reuters data. Since 1994, 63 per cent have surpassed estimates on average, while the beat rate is 67 per cent for the past four quarters.

Housing stocks ranked among the best performers, after Barclays raised its rating on the homebuilding sector to “positive” from “neutral”.

The sector also got a lift from encouraging housing data, with US new home sales up 1.5 per cent in March.