Wall Street enters third day of gains as trade fears ease

Dow, S&P 500 post best days in more than a month; banks lead gains

Dow, S&P 500 post best days in more than a month; banks lead gains

USA stocks rose on Monday, with bank stocks leading third day of gains in a row after strong U.S.jobs data from last week helped investors brush aside trade concerns.

The consumer staples index climbed 1.3 percent and provided the biggest lift to the S&P 500, driven by PepsiCo, which gained 4.8 percent, while Procter & Gamble rose 2.5 percent and Coca-Cola was up 1.3 percent. The S&P 500 financial index rose 2.3 percent, leading gains among sectors. JPMorgan Chase, Wells Fargo and Citigroup are scheduled to report results on Friday.

"We're on the eve of what's going to be a dynamite earnings season", for the S&P 500 overall, said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

Although there are no immediate signs he US-China trade war is escalating, the key geopolitical risk is whether the United Kingdom is headed for a leadership challenge.

The United States and China slapped tit-for-tat tariffs on $34 billion of each other's goods on Friday, escalating a months-long trade dispute between the two countries.

A Bank of America Merrill Lynch Global Research report showed earnings per share for S&P 500 companies for 2018 was revised higher amid better-than-expected first-quarter results, higher oil prices and stronger-than-expected USA economic growth.

Analysts' estimates for S&P 500 second-quarter profit growth have risen slightly since April, putting the latest forecast at around 21 percent, according to Thomson Reuters data.

During the regular session, the Dow Jones Industrial Average rose 143.07 points, or 0.58 percent, to end at 24,919.66, while the Nasdaq Composite added 3.00 points, or 0.04 percent, to 7,759.20.

Also boosting the S&P on Tuesday, utilities and telecom indexes rose about 1 percent each, bouncing back from Monday's losses.

Twitter sank after the Washington Post reported that the social media company suspended more than 70 million fake accounts in May and June, which analysts said could be negative for user growth.

USA -listed shares of Chinese companies Alibaba, JD.com and Baidu climbed after KeyBanc recommendations on the stocks.

Advancing issues outnumbered declining ones on the NYSE by a 1.77-to-1 ratio; on Nasdaq, a 1.65-to-1 ratio favored advancers.

The S&P 500 posted 30 new 52-week highs and no new lows; the Nasdaq Composite recorded 104 new highs and 26 new lows. That compares with the 7 billion daily average for the past 20 trading days, according to Thomson Reuters data.