Stocks ripped higher for a second session on Tuesday as a strong batch of corporate earnings assuaged concerns over higher rates.

The Dow Jones Industrial Average climbed 263.71 points, or 0.69%, to close at 38,503.69. The S&P 500 gained 1.2% to finish the session at 5,070.55, while the Nasdaq Composite ticked up 1.59% to end at 15,696.64.

Spotify surged 11.4% after surpassing Wall Street's first-quarter estimates and issuing rosy second-quarter guidance. UPS shares edged 2.4% higher after the delivery giant surpassed expectations for earnings. Shares of GE Aerospace added 8.3% after the company reported an earnings beat. PepsiCo, meanwhile, dipped 2.9% after reporting that recalls and a weaker lower-income consumer hurt demand in the U.S.

Tesla is slated to report earnings after the bell, followed by Meta Platforms on Wednesday afternoon. Google parent company Alphabet and Microsoft round out the technology-heavy earnings week on Thursday.

Roughly 20% of the S&P 500 has reported earnings through Tuesday. Of those companies, 76% have beaten analysts' expectations, FactSet data shows.

Tuesday's moves come after an upbeat session on Wall Street. Investors bought the dip in tech stocks after a recent sell-off in key names such as Nvidia, which had been dinged recently amid fears of higher inflation and the prospect of elevated interest rates.

"Equities have staged among the best-behaved sell-offs in 30yrs; however, as AI winners + Mag7 took the brunt of the last leg lower, disappointing earnings may accelerate losses, a risk options seem to discount," Barclays strategist Stefano Pascale wrote.

Elsewhere, Treasury yields pulled back after U.S. manufacturing data hit a four-month low. The S&P Global Flash U.S. manufacturing PMI read 49.9, down from 51.9 in March.

Goldman Sachs' Kostin expects earnings will be higher this year even amid margin pressures

Goldman Sachs' David Kostin expects earnings will be higher this year even amid concerns of margin pressures in the face of higher inflation.

About one-fifth of companies have reported thus far this earnings season. Of those companies, Kostin noted, roughly two-thirds have topped expectations on the bottom line, while about one-third beat estimates on the top line.

"What that suggests to us is that companies are able and demonstrating the ability to kind of squeak over a little bit margin," Kostin told CNBC's "Squawk on the Street" on Tuesday.

The chief U.S. equity strategist said he anticipates inflation will eventually move lower this year, and interest rates will come down from their highs, helping to drive earnings growth.

"Our forecast is that [the] market rises slowly in line with expectations for earnings," Kostin said. "Margins will be roughly flat, and then ultimately it's a little bit about economic growth will drive sales, and that's largely the reason for earnings to be higher for this year."

— Sarah Min

IBM reportedly nearing deal to buy HashiCorp

IBM is close to a deal to buy cloud software provider HashiCorp, according to The Wall Street Journal, citing people familiar with the matter.

Shares of HashiCorp jumped 7%, while IBM's stock traded slightly lower.

The Journal said a deal could be done in the coming days, but it is also possible that the discussions may not yield anything.

— Yun Li

Wall Street awaits Tesla results

Tesla is due to report earnings after the bell Tuesday, with Wall Street looking for any sign of a reprieve from this year's struggles.

Shares are down more than 40% in 2024 and reached their lowest level since January 2023 on Monday amid concerns over demand, price cuts, a Cybertruck recall and heightening demand from Chinese competitors.

Against this backdrop, analysts are looking to see if Tesla can convince Wall Street of its growth potential ahead. Several Wall Street firms lowered their price targets in advance of Tuesday's announcement, with many forecasting that the company will lower its deliveries outlook for the rest of the year.

CNBC Pro subscribers can read the full story here.

— Hakyung Kim

Globe Life shares surge after earnings guidance

Globe Life shares surged more than 11% in afternoon trading after the life insurance company raised its full-year earnings guidance.

The life insurer anticipates earnings per share between $11.50 and $12.00 for 2024, up from a prior range between $11.30 and $11.80. Otherwise, the firm posted first-quarter operating earnings and revenue that matched FactSet consensus estimates.

Separately, the company in its earnings call addressed a recent short seller report alleging multiple instances of insurance fraud, saying that it has retained WilmerHale to conduct an independent review.

The stock had tumbled more than 36% this month following Fuzzy Panda Research disclosing a short position after uncovering "extensive allegations of insurance fraud ignored by management despite being obvious and reported hundreds of times."

— Sarah Min

GE Aerospace shares soar after earnings beat, guidance lift

GE Aerospace shares jumped nearly 7% on Tuesday after it beat first-quarter earnings expectations and raised its operating profit outlook. The report was the first since the aviation business spun off from General Electric in April.

The company reported adjusted earnings of 82 cents a share, while analysts polled by FactSet expected 65 cents a share. On a stand-alone basis, GE Aerospace posted adjusted revenue of $8.1 billion for the period, surpassing analysts' forecast of $7 billion, per FactSet.

This year, GE Aerospace expects adjusted earnings to come out between $3.80 and $4.05 a share, and an operating profit between $6.2 billion and $6.6 billion, which is higher than its previous forecast.

The stock is up more than 58% year to date.

— Pia Singh

Tesla shares rise before earnings

Tesla advanced 2% ahead of its earnings announcement Wednesday after the bell.

The electric vehicle stock has declined 17.6% in April alone, putting it down 41.7% year to date.

— Hakyung Kim

Investors are continuing to shift into defensive strategies, says Wolfe Research

Investors are continuing to rotate into defensive strategies, as can be observed through the performance of consumer discretionary stocks versus staples, according to Wolfe Research.

"Consumer Staples has been hit hard for the majority [of] this year, but we have seen the sector begin to come to life over the past week, now up 4.3% on the year (Discretionary is down 4%)," wrote analyst Rob Ginsberg.

He added, "We think this speaks to a few changing themes, including investor sentiment and a shift into Value names. Perhaps the idea of rates staying higher is really starting to sink in."

As staples continue to outperform, Ginsberg highlighted Tyson Foods and Mondelez International as two stocks in the sector he is bullish on.

— Lisa Kailai Han

Dimon says economy is booming, but 'stagflation' risk remains

JPMorgan Chase CEO Jamie Dimon said Tuesday that the American economy remains strong, but could tip into a period of "stagflation."

At the Economic Club of New York, Dimon said to watch out for "stagflation," which is an economic situation defined by high inflation and unemployment as well as slowed growth. Despite that concern, he said the American economy has continued to boom.

The bank chief also said the current geopolitical situation is likely the "most complicated and dangerous" since World War II.

— Alex Harring, Ritika Shah

Stocks making the biggest moves midday: Spotify, JetBlue and more

Here are the stocks moving the most in midday trading:

• Spotify — The streaming music company surged 16% after easily topping earnings expectations.
• JetBlue Airways — Shares plummeted 16% after the airline company lowered its forecasts for revenue for the second quarter and full-year 2024.
• Danaher — The life sciences firm popped more than 7% after beating analysts' expectations for its first-quarter results.

Read the full list of stocks moving here.

— Lisa Kailai Han

Cathie Wood's innovation fund suffers $1.4 billion in outflows this year

Cathie Wood's flagship fund has suffered big outflows this year as investors grew disappointed about its underperformance.

The Ark Innovation ETF (ARKK) has experienced $1.36 billion in outflows in 2024, according to FactSet. The innovation fund has lagged the market significantly this year, with a loss of about 16%.

Leading the decline in the fund have been Pacific Biosciences of California, 2U, 10X Genomics and Verve Therapeutics.

— Yun Li

Penn Entertainment shares jump on Truist Securities upgrade

Penn Entertainment shares rose 1.7% on Tuesday after Truist Securities upgraded shares to buy and assigned a price target that implies roughly 35.8% upside for the stock.

That is a bullish call, as Penn Entertainment's shares have fallen nearly 35% this year, since the company announced a licensing deal with ESPN in August to create sportsbook ESPN BET. Shares are up more than 4% week to date.

"We're upgrading PENN … largely on risk/reward, given we effectively see zero to negative value ascribed for ESPN Bet at current trading levels," analyst Barry Jonas wrote in a Tuesday note. "At this point, we think expectations are too low, and the market is not only too bearish on ESPN Bet but also assuming no value for PENN's other profitable Interactive businesses."

For more on the upgrade, read here.

— Pia Singh

General Motors pops after earnings beat, strong guidance

General Motors stock climbed 4.2% Tuesday after the legacy automaker surpassed Wall Street estimates in the first quarter and raised its full-year earnings forecast.

GM said it now expects adjusted earnings in the range of $12.5 billion to $14.5 billion this year, compared to a previous forecast of $12 billion to $14 billion.

— Brian Evans

Home sales rose more than expected in March

New residential home sales accelerated in March at a faster-than-expected pace as mortgage rates declined over the month, the Commerce Department reported Tuesday.

Sales of single-family homes totaled 693,000 for the month, considerably higher than the downwardly revised 637,000 in February and better than the 669,000 estimate from Dow Jones. With the lower February total, the 8.8% gain in March was much higher than the 1.1% forecast.

After dipping in January, the median sales price jumped back up to $430,700, the highest level since August 2023.

Interest rates for 30-year mortgages edged lower in March to below 7% but have since rebounded, according to Bankrate.

— Jeff Cox

PMI indexes for April come in lower than expected

Manufacturing and services activity hit multimonth lows in April, indicating a potential slowdown in U.S. economic growth.

The S&P Global Flash U.S. Composite PMI showed a 49.9 reading for manufacturing, down from 51.9 in February and the lowest reading in four months. On the services side, the index came in at 50.9, compared to 51 the prior month. Economists surveyed by Dow Jones had been looking for 52 readings on both measures.

The diffusion indexes measure the percentage of companies reporting expansion, so anything below 50 points to contraction.

New orders measures dropped for the first time in six months. "Companies responded by scaling back employment for the first time in almost four years, with business confidence also waning to the lowest since last November," the report stated.

— Jeff Cox

Spotify jumps 13% after earnings beat

Shares of Spotify jumped 13% Tuesday after the streaming music company beat expectations on the top and bottom lines for the first quarter.

Spotify reported 0.97 euros in earnings per share on 3.64 billion euros in revenue. Analysts surveyed by LSEG had penciled in 0.65 euros per share and $3.61 billion euros in revenue.

Spotify's gross margin of 27.6% was up from 25.2% in the same quarter a year ago.

— Jesse Pound

U.S. crude oil falls to lowest level since March, dips below 50-day moving average

U.S. crude oil hit a session low of $80.89 a barrel on Tuesday, the lowest level since late March.

The West Texas Intermediate futures contract for June also dipped below the 50-day moving average of $81.22 a barrel for the first time since early February.

WTI was last trading at $81.51 a barrel, down 39 cents, while the June Brent futures contract was last down 36 cents at $86.64 a barrel.

Traders have bid down prices after a runup early this month on fears that Iran and Israel were on the brink of war. Those fears have largely dissipated as the bitter enemies have signaled they are not interested in a wider war after trading tit-for-tat strikes this month.

The market was also unconcerned about looming oil sanctions on Iran. The House of Representatives passed legislation over the weekend that would target ports, vessels and refineries that accept Iranian oil. The Senate could take up the legislation this week.

— Spencer Kimball

Stocks open higher

Stocks opened higher on Tuesday, with Wall Street focused on a fresh slate of forthcoming tech earnings.

The S&P 500 added 0.4% shortly after the opening bell, while the Nasdaq Composite gained 0.4%. The Dow Jones Industrial Average climbed 124 points, or 0.3%.

— Brian Evans

Stocks making the biggest premarket moves

Here are some of the names making moves before the bell:

• Novartis — Shares rallied 4.7% after the Swiss drugmaker topped expectations for its first quarter and raised its full-year guidance.
• General Motors — The automaker moved nearly 5% higher after reporting $2.62 per share on revenue of $43.01 billion for the first quarter. Analysts polled by LSEG expected $2.15 per share on revenue of $41.92 billion.
• Spotify — The stock jumped 8% after the music streaming company reported 3.64 billion euros in revenue for the first quarter, beating the LSEG consensus estimate of 3.61 billion euros.

To see more stocks moving in the premarket, read the full story here.

— Michelle Fox

UPS rises on per-share earnings beat

United Parcel Service ticked 0.4% higher during premarket trading Tuesday after earnings per share topped Wall Street expectations.

UPS earned $1.43 per share in the first quarter excluding items, easily exceeding the consensus forecast of $1.29 from analysts polled by LSEG. On the other hand, revenue came in at $21.7 billion, under the $21.86 billion anticipated by analysts.

The Atlanta-based company also reiterated its full-year guidance on revenue, operating margins and capital expenditures.

— Alex Harring

Europe stocks open higher as FTSE hits record high

European stocks opened higher Tuesday, with the benchmark Stoxx 600 index up 0.5% by 8:40 a.m. London time.

The U.K.'s FTSE 100 climbed 0.5% to hit an all-time intraday high, while France's CAC 40 was 0.2% higher, and Germany's DAX was up 0.7%.

— Karen Gilchrist

Chinese bubble tea company Chabaidao tumbles 30% in Hong Kong trading debut

Shares of Chinese bubble tea chain Chabaidao, officially listed as Sichuan Baicha Baidao Industrial, opened 10% lower in early trade on its trading debut in Hong Kong, before plunging more than 30%.

It is currently trading at HK$12.32, far below its IPO offer price of HK$17.50.

The IPO is Hong Kong's largest listing so far this year. The company announced it had garnered net proceeds of 2.59 billion Hong Kong dollars, or $330.5 million, from its IPO, before listing expenses.

Chabaidao offered 90% of its 147.7 million shares in a global offering, while the remainder 10% was offered in a public offer in Hong Kong.

However, the public offer was only 0.5 times subscribed, leading the firm to reallocate the remainder of the shares to the global offer, which was 1.11 times subscribed.

— Lim Hui Jie

Yen hits fresh 34-year low of 154.85 early Tuesday

The Japanese yen weakened to a fresh 34-year low against the U.S. dollar early Tuesday, hitting 154.85 against the greenback.

This is the weakest the currency has been since the mid-1990s, although it has strengthened marginally to 154.74 as of 9:18 a.m. Tokyo time.

The currency will be watched by the Bank of Japan as it meets Friday, although the central bank has not announced a level where it will intervene.

— Lim Hui Jie

Australia's business activity expands at fastest pace in 24 months: S&P Global

Australia's business activity in April expanded at its fastest clip in 24 months, according to flash figures from S&P Global.

The country's composite purchasing managers index came in at 53.6, compared to 53.3 in March.

Manufacturing PMI climbed to 49.9 from 47.3, just shy of the 50 mark that separates expansion from contraction, while services PMI slipped slightly to 54.2 from 54.4.

— Lim Hui Jie

Stocks making the biggest moves after hours

Check out the companies making headlines in after-hours trading.

• Nucor — Shares slid 6.3% after the steelmaker's first-quarter results fell short of estimates and it issued a lackluster second-quarter outlook. First-quarter earnings of $3.46 per share fell below the FactSet consensus estimate of $3.67 in earnings per share. Revenue of $8.14 billion was weaker than the estimated $8.26 billion. Nucor expects lower second-quarter earnings, citing "decreased earnings of the steel mills segment, primarily due to lower average selling prices partially offset by modestly increased volumes."
• Cleveland-Cliffs — The steel producer lost nearly 3%. Cleveland-Cliffs' first-quarter results fell short of analysts' expectations, with adjusted earnings of 18 cents per share on revenue of $5.2 billion. Analysts surveyed by LSEG estimated earnings of 22 cents per share and revenue of $5.35 billion.
• Cadence Design Systems — Shares dropped 8.9% after the software company issued poor second-quarter guidance. Cadence Design Systems forecast second-quarter earnings per share of $1.20 to $1.24, lower than the $1.43 per share expected by analysts polled by FactSet. Revenue guidance between $1.03 billion and $1.05 billion also missed a FactSet consensus estimate of $1.11 billion.

Read the full list here.

— Sarah Min

March new home sales data set to release Tuesday

New home sales are anticipated to have risen 1.2% in March, according to economists polled by Dow Jones. That would be a jump from a 0.3% decline in the prior month.

The data is set to release at 10 a.m. ET on Tuesday.

— Sarah Min

Stock futures open little changed

Stock futures opened little changed Monday night.

Dow Jones Industrial Average futures rose 30 points, or 0.08%. S&P 500 futures and Nasdaq 100 futures climbed 0.09% and 0.06%, respectively.

— Sarah Min