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New York - Technology shares led US stocks higher on Tuesday after Netflix surged on strong subscriber growth and Google parent Alphabet hit an all-time high as its new Pixel phone garnered positive reviews.
Netflix soared 19.0% after reporting 3.57 million in new subscribers for the third quarter and projecting a gain of 5.2 million in the fourth quarter, much better than expected.
The results boosted hopes that other tech earnings may also be strong in the coming weeks. Google parent Alphabet, Tesla Motors and Electronic Arts all rose two percent or more. Amazon and Facebook also rose.
The tech-rich Nasdaq Composite jumped 0.9% to 5 243.84.
The Dow Jones Industrial Average rose 0.4% to 18 161.94, while the broad-based S&P 500 gained 0.6% to 2 139.60.
UnitedHealth was the biggest gainer in the Dow, climbing 7.1% after reporting that third-quarter earnings jumped 23.2% to $2bn, due in part to a strong performance in its Optum consulting and data analysis business.
Other health insurers also moved higher, with Aetna winning 2.6% and Cigna 4.2%.
Goldman Sachs climbed 2.2% as it reported a 58% jump in third-quarter earnings to $2.1bn due in part to a strong performance in its trading division.
But IBM lost 2.6% despite reporting better-than-expected earnings with some analysts expressing disappointment in the tech giant's profit margins. Revenues also fell for the 18th straight quarter.
Johnson & Johnson fell 2.7% on concerns about new competition from Pfizer and other drugmakers with J&J's blockbuster arthritis treatment Remicade. Chief financial officer Dominic Caruso predicted "modest" impact on Remicade sales due to the new competitors.
Dow member Visa fell 0.7% on the surprise news that chief executive Charlie Scharf would resign in December and be replaced with Alfred Kelly, Jr., a former president of American Express.
