Dow jumps 278 points as earnings optimism overtakes economic growth concerns

• The Dow industrials shot up 278 points in a turnaround for US stocks on Tuesday.
• 10 of the S&P 500's 11 sectors advanced, fronted by energy and industrial issues.
• The expected earnings growth rate for S&P 500 companies is headed toward 85.1%.

US stocks finished higher Tuesday as companies turned in more earnings reports that outstripped expectations, helping the market overcome earlier weakness drawn from ongoing concerns that the spread of the coronavirus will hurt the economic recovery.

The Dow Jones Industrial Average shot up by more than 250 points. The S&P 500's advance was led by gains in 10 of its 11 sectors, with energy, industrial and health care stocks up while the communications services sector lagged behind. Wall Street's major benchmarks each lost ground during the session then moved up. The indexes fell on Monday as a slowdown in the manufacturing sector stoked growth worries.

"With quarterly earnings still coming in at a steady clip, along with a resurgence of COVID-related concerns (and an eye on what could be an interesting employment report to end the week), we've got all the makings of a choppy market," said JJ Kinahan, chief market strategist at TD Ameritrade, in a posting Tuesday.

Here's where US indexes stood at 4:00 p.m. on Tuesday:

• S&P 500: 4,423.31, up 0.82%
• Dow Jones Industrial Average: 35,117.32, up 0.8% (279.16 points)
• Nasdaq Composite: 14,761.29, 0.55%

"But there's still reason for optimism," Kinahan said, noting that 59% of S&P 500 companies have reported second-quarter earnings results, and 88% of them have beaten Wall Street's per-share earnings estimates, according to FactSet data. "The expected earnings growth rate for S&P 500 companies is tracking toward 85.1%, which would be the biggest jump since Q4 2009," he wrote.

S&P 500 companies releasing results Tuesday included Marriott, providing some insight into the health of the travel industry. The hospitality group posted second-quarter adjusted earnings above expectations. Under Armour's quarterly earnings surpassed Wall Street's target for the athletic wear maker, while earnings at Clorox disappointed following a surge in demand for cleaning products a year earlier.

Around the markets, Robinhood soared to a post-IPO record high as long-term investors like Cathie Wood's Ark Invest begin to build a position in the fintech platform. Meanwhile, a proposed ETF would allow investors to bet against Ark Invest's flagship Disruptive Innovation ETF, according to a prospectus filed with the SEC by Tuttle Capital Management.

Investors are flocking to 'quality' in the stock market as the economic cycle nears peak growth, BlackRock says

Tencent Holdings fell on concerns the Chinese government may next target the online entertainment industry as part of its ongoing regulatory crackdown.

SEC Chairman Gary Gensler urged Congress to give the agency more authority to regulate the $1.6 trillion cryptocurrency market.

Gold slipped 0.2% to $1,809.99 per ounce. Long-dated US Treasury yields edged up, with the 10-year yield at 1.17%.

Oil prices turned lower. West Texas Intermediate crude fell 1.1% to $70.48 per barrel. Brent crude, oil's international benchmark, lost 0.8% to $72.32 per barrel.

Bitcoin dropped 3% to $38,030.83.